Male–female wage differentials in Japan

This paper empirically analyzes the gender wage gap in Japan using a new data set KHPS2004 which contains a wealth of information on the work history of individuals. KHPS2004 enables us to estimate wage functions without overstating individual’s human capital accumulation by work experience especially for females. Neuman-Oaxaca decomposition method is employed to analyze why the gender wage gap appears to exist in Japan. Main reasons as follows. First, full-time work experience and seniority which affect significantly wages is shorter for females than for males. Second, there are significant differences in evaluation of full-time experience between males and females.     

Estimating youth training wage differentials during and after training

We compare wages between school leavers who participate in government-fundedyouth training and those who do not. Using a subset of all schoolleavers in Lancashire between 1988 and 1991, we find that wagedifferentials are large and negative for all types of participantwhen training. Once training finishes, differentials are smallbut still negative. There is no evidence that participants havesteeper wage profiles. A ranking of lifetime wages suggeststhat the occupations chosen by participants may offer positivereturns compared to occupations with no training. The largestimpact comes at the firm level: training providers pay lowerwages to both ex-participants and non-participants.     

Parenthood and the gender wage gap in urban China

Using data from the Chinese Household Income Project survey and decomposition methods, this study explored the influence of parenthood on the gender wage gap in urban China in 2002 and 2018. Our findings showed that the employment rate is lower for women than men in both childless and with child groups, and the gender gap expanded from 2002 to 2018. The data revealed a parenthood wage penalty in 2002 and a parenthood wage premium in 2018. Moreover, the parenthood wage penalty was greater for women than for men and contributed to the formation of the gender wage gap. We also found that three components: motherhood wage penalty, fatherhood wage premium, and gender wage gap in the childless group contributed to the formation of the gender wage gap. From 2002–2018, the motherhood wage penalty decreased, whereas the fatherhood wage premium increased.     

Public sector wage settlement and the threat of outsourcing

This paper investigates the impact of outsourcing on wage settlement in the public sector. The study characterizes the equilibrium wage offered by the public sector union to a government bureau competing against private sector firms. It is predicted that the union will offer a concession wage in an attempt to block outsourcing when its members' outside employment options are sufficiently unattractive and will offer a non-concession wage otherwise. The study contributes to the literature on outsourcing and wage determination in the public sector.     

Man in the public sector

Summary This paper addresses the question of how to model government behavior. The central thought is that in principle the same behavioral model should apply to the behavior of individuals in the private sector as well as the public sector. The paper starts, therefore, with an outline of the contours of a general model of individual behavior. Use is thereby made of the so-called interest function approach that I developed inOn the Interaction Between State and Private Sector (Amsterdam, North-Holland, 1983) and which is somewhat further elaborated in this paper. The model is subsequently applied to the behavior of the individuals that make up the government organization, bureaucrats and politicians. The potential importance of the approach is indicated by a short survey of the theoretical and empirical results obtained with it so far.     

Skill compression, wage differentials, and employment: Germany vs the US

Germany's more compressed wage structure is widely viewed asthe main cause of the German-US difference in employment andunemployment, but part of the compression is due to Germanyhaving a narrower distribution of skills than the US. Even adjustedfor skills, however, we find that Germany has a more compressedwage distribution than the US. But relatively little of theUS-German employment difference can be attributed to the compressedwage distribution. We find that jobless Germans have nearlythe same skills as employed Germans and look more like averageAmericans than like low skilled Americans, which runs counterto the wage compression hypothesis. Given these patterns, thepay and employment experience of low skilled Americans is apoor counterfactual for assessing how reductions in pay mightaffect jobless Germans.     

Economics of the public sector

Likierman, A. 1988: Public Expenditure: Who Really Controls it and How? London: Penguin, £4.99.

Helm, D. (ed) 1989: The Economic Borders of the State. Oxford: Oxford University Press, £35.00 cloth, £15.00 paper.

Collard, D. (ed) 1989: Fiscal Policy: Essays in Honour of Cedric Sandford. Aldershot: Avebury, £35.00 cloth.

Hare, P. (ed) 1988: Surveys in Public Sector Economics. Oxford: Blackwell, £37.50 cloth.     

Investment appraisal in the public sector

Recent developments, such as privatization and the private financeinitiative, have raised the issue of which assets should beowned by the public sector and whether assets have differentvalues in the public and private sectors. In order to answerthe questions, we first note that the allocative considerationsthat usually motivate government intervention need not requirethe direct provision of services by the government using government-ownedassets. We then argue that the government should own the assetsused to provide the services where the private sector fearsexpropriation by the government, or where ownership conferson the private sector such power as to preclude efficient allocations.Finally, we argue that the discount rate for governments' projectsequals the expected return on comparable investments in thecapital markets. The government should, however, discount pre-taxcash flows at the pre-tax discount rate, for it receives alltax revenues.     

Decomposing wage differentials between migrant workers and urban workers in urban China's labor markets

This paper looks at wage discrimination faced by China's rural–urban migrants. Using data from the China Urban Labour Survey, it uses standard wage decomposition techniques to measure the extent wage gaps between migrants and locals are attributable to migration. Because the survey covers five cities, the results allow for an investigation regarding how much variation in discrimination there is. Unlike previous studies of wage discrimination in China, this research includes a more full measure of remuneration by including non-financial benefits as well as bonuses earned. The results suggest that migrants still face a significant amount of discrimination, but that this varies a lot between cities.     

The theory of wage differentials,induced technical progress and the pure theory of International trade

Zusammenfassung Die Theorie der Lohnunterschiede, des induzierten tech-nischen Fortschritts und die reine Theorie des internationalen Handels. — In der Literatur über die Theorie der Lohnunterschiede und des internationalen Handels wird gew?hnlich angenommen, die Lohnunterschiede seien exogen und die Ausgangs-lage sei ein Gleichgewicht. Der vorliegende Aufsatz geht abweichend davon von einem Ungleichgewichtszustand aus. Es wird ein Modell entwickelt, in dem technischer Fortschritt als Folge intersektoraler Lohnunterschiede entsteht (unter der Annahme einer Untergrenze für die Lohns?tze, die durch Subsistenzüberlegungen bestimmt wird). Aus der Untersuchung ergibt sich folgendes: (1) Eine Volkswirtschaft, die durch Lohnunterschiede gekennzeichnet ist, kann sich in eine Volkswirtschaft mit Subsistenz-L?hnen verwandeln. In diesem Fall gibt es automatische Kr?fte, die das System von einem Typ verzerrender Rahmenbedingungen (Lohnunterschiede) zu einem anderen Typ verzerrender Rahmenbedingungen (Subsistenz-L?hne) überleiten. (2) Eine Volkswirtschaft, die durch Lohnunterschiede gekennzeichnet ist, kann eine optimale L?sung infolge des Wirkens zweier Arten von technischem Fortschritt erreichen, n?mlich (a) durch den technischen Fortschritt, der durch intersektorale Lohnunterschiede hervorgerufen wird und (b) durch den technischen Fortschritt vom Kennedy-Typ. Die Literatur über Lohnunterschiede und Handel war haupts?chlich damit besch?ftigt, die Folgen eines exogen bestimmten Lohnes, der keine Beziehungen zu den Parametern des Modells hat, zu untersuchen, und hat dabei die Prüfung der Mechanismen vernachl?ssigt, die imstande sein k?nnen, die Lohnunterschiede zu beseitigen. Dieser Aufsatz ist ein kleiner Beitrag dazu, diese Lücke im Schrifttum auszufüllen.

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Résumé La théorie des différentiels salariaux, le progrès technique induit et la théorie pure du commerce international. — Dans la littérature sur la théorie des différentiels salariaux et le commerce international, on généralement regarde le différentiel salarial comme être exogène et la position initiale comme être une position d’équilibre. Ce papier se sépare de cette pratique générale et regarde la situation initiale comme être une position de diséquilibre. Nous établons un modèle dans lequel le progrès technique entre comme conséquence d’un différentiel salarial intersectoriel (en supposant l’existence d’une borne plus basse des taux salariaux à cause de la considération de subsistence). Les propositions suivantes sont déri-vées de l’investigation, (1) Une économie caractérisée par un différentiel salarial peut transformer elle-même dans une économie de salaire minimum de subsistence. En conséquence il y a des forces automatiques menant le système d’un type de cadre distors (différentiels salariaux) à un autre type de cadre distors (salaire minimum de subsistence). (2) Une économie caractérisée par un différentiel salarial peut arriver à une solution de ?first best? via l’opération des deux types du progrès technique, viz. (a) le progrès technique induit par le différentiel salarial intersectoriel et (b) le type du progrès technique de Kennedy. La littérature sur les différentiels salariaux et le commerce extérieur a princi-palement exploré les conséquences d’un taux salarial fixé exogènement qui n’interagit pas avec les paramètres du modèle et c’est pourquoi a négligé l’étude des mécanismes automatiques qui peuvent éliminer le différentiel salarial. Ce papier est une contri-bution mineure de remplir la lacune dans la littérature sur les différentiels salariaux et le commerce extérieur.

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Resumen La teoría de los salarios diferenciales, progreso técnico inducido y la teoría pura del comercio internacional. — En la literatura sobre la teoría de los salarios diferenciales y el comercio international, la diferencia salarial se considera generalmente como exógena y la posición inicial como una posición de equilibrio. El presente artículo se aleja de esta práctica general y considera la situación inicial como una posición de desequilibrio. Se construye un modelo en que el progreso técnico se produce como una consecuencia del salario difenrencial intersectorial (asumiendo la existencia de un límite aún inferior para las tasas salariales determina-das por la consideratión de subsistencia). Las proposiciones siguientes emergen de la investigación. (1) Una economía caracterizada por una diferencia salarial puede transformarse en una economía de salarios mínimos de subsistencia. De tal manera existen fuerzas automáticas que llevan el sistema de un tipo de marco distorsionador (salarios diferenciales) a otro tipo de marco distorsionador (salarios minimos de subsistencia). (2) Una economía caracterizada por salarios diferenciales puede alcanzar una solución first best via la operación de dos tipos de progresos técnicos, (a) progreso técnico inducido por el diferencial salarial intersectorial y (b) el tipo Kennedy de progreso técnico. La literatura sobre salarios diferenciales y comercio se ha preocupado en su mayor parte de la exploración de las consecuencias de una tasa salarial fijada exó-genamente que no interactúa con los parámetros del modelo, no habiéndole dado la debida importancia al estudio de mecanismos automáticos que pueden ser capaces de remover las diferencias salariales. Este artículo es una contribución menor hacia el relleno de la laguna en la literatura sobre salarios diferenciales y comercio.

     

A longitudinal analysis of racial wage differentials for young nonfarm rural workers

A longitudinal data base is used to estimate racial wage differentials for young nonfarm rural workers for 1968, 1973, and 1978. The empirical results indicate the existence of large wage differentials between young white and young black nonfarm rural workers of both sexes. The results also indicate that the wage differential for young men has increased over time while the differential for young women has decreased slightly over time.     

More evidence on the puzzle of interindustry wage differentials: The case of West Germany

Zusammenfassung Mehr Evidenz zur interindustriellen Lohnstruktur in der Bundesrepublik Deutschland. — Die Verfasser zeigen, da? in der Bundesrepublik Deutschland für Arbeitskr?fte mit ?hnlichen Qualifikationsmerkmalen branchenspezifische Lohnunterschiede existieren und da? die interindustrielle Lohnstruktur in der Bundesrepublik der interindustriellen Lohnstruktur in den Vereinigten Staaten gleicht. So sind der Stra?enfahrzeugbau und die Mineral?lverarbeitung in beiden L?ndern typische Hochlohnbranchen, das Bekleidungsgewerbe und das Ledergewerbe dagegen typische Niedriglohnbranchen. Diese ?hnlichkeit der interindustriellen Lohnstrukturen mu? überraschen, da sich die institutionellen Rahmenbedingungen des Arbeitsmarktes in beiden L?ndern sehr stark unterscheiden. Darüber hinaus zeigt sich, da? im Branchenquerschnitt die Verdienste von Besch?ftigten mit unterschiedlicher Qualifikation eng miteinander korreliert sind. Diese Ergebnisse sind nicht ohne weiteres mit den herk?mmlichen neoklassischen Arbeitsmarktmodellen zu vereinbaren.

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Résumé Plus d’évidence des différences inter-industrielles de salaire: Le cas de la RFA. — Cette étude représente l’évidence empirique de l’existence des différences inter-industrielles de salaire pour les ouvriers avec des qualifications similaires en RFA. La structure de salaire inter-industriel en RFA semble à celle aux Etats Unis. Dans tous les deux pays ce sont l’industrie d’automobiles et les raffineries de pétrol qui ont un typiquement haut niveau de salaire, tandis que les industries des textiles et de cuir ont un niveau bas. La similarité des structures inter-industrielles de salaire est un puzzle parce que ces deux pays ont des institutions complètement différentes en ce qui concerne le marché du travail. De plus, on a trouvé des corrélations fortes de salaire entre aucun de deux groupes d’ouvriers qualifiés sur toutes les branches en RFA. Ces résultats sont un défi pour les théories néoclassiques du marché du travail.

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Resumen Más evidencia empírica sobre el rompecabezas de las diferencias salariales interindustriales en Alemania Occidental. — En este trabajo se presenta evidencia empirica sobre la existencia de diferencias interindustriales en el nivel de salarios para trabajadores con calificación similar en Alemania Occidental. La estructura interindustrial de salarios de Alemania Occidental presenta el mismo perfil que la de los EE UU. En ambos países las ramas de salarios altos comúnmente son las de vehículos y refinación de petróleo, mientras que las ramas de salarios más bajos incluyen las de la vestimenta y cuero. La similitud de las estructuras interindustriales de ingresos indica la existencia de un rompecabezas, debido a que estos paises exhiben un marco institutional para el mercado laboral totalmente diferente. Además, se encuentra una correlación alta entre los salarios de dos grupos cualesquiera de trabajadores calificados pertenecientes a una misma industria. Estos resultados constituyen un reto a las teorías neoclásicas tradicionales del mercado laboral.

     

A detailed decomposition analysis of the public-private sector wage gap in South Africa

The present study examines the public-private sector wage gap in South Africa using individual cross-sectional data for 2000–14. Results from unconditional quantile regressions and generalised Oaxaca–Blinder type decompositions show that the wage gap is an inverted-U shape across the wage distribution. The ‘composition effect’ is more important than the ‘price effect’ at the bottom of the distribution while the opposite applies at the top. Key factors underpinning the ‘composition effect’ are unionisation, industry of employment and education, while those associated with the ‘price effect’ are education, race and occupation.     

The labor market in Tokugawa Japan: Wage differentials and the real wage level, 1727–1830

Tokugawa economic history provides quite an interesting example of the workings of the labor market: In the Tokugawa period a contraction in occupational wage differentials occurred concurrently with a rise in real wages. This paper deals with these aspects of wage change and a general set of problems which has arisen about them. The first section sets out these problems; the second deals with the evidence on wage differentials and real wages in Kinai from 1727 to 1830. The third provides a theoretical framework to explain the findings; finally the last section examines the implications of the findings.     

A comparison of the wage structure between the public and private sectors in Japan

This study compares the wages in the public and private sectors in Japan. In addition to comparing overall wage levels, we examine the differences in the wage structures, specifically, the relative wages by gender, age, education, and region. The size of the public sector wage premium depends crucially on the size of the private companies chosen as the comparison group. Wage gaps by gender and educational attainment are smaller in the public sector than they are in private companies. The public sector's age–wage profile is steeper than that of the private sector. Public sector wages are more compressed. In other words, the wages are relatively higher at the lower end of the wage distribution and relatively lower at the higher end. The regional wage differentials are smaller in the public sector. Here, the wage levels of public sector workers are relatively higher in rural regions and relatively lower in large metropolitan regions. To ensure the efficient provision of public services, it is inappropriate to compare only mean wages.     

Parenthood penalty and gender wage gap: Recent evidence from Thailand

This study first examines the evolution of gender wage gap in Thailand, using cross-sectional data from the Labor Force Survey (LFS) for 1985–2017. We find that education, occupation, and industry significantly contribute to gender wage gap convergence in Thailand. Furthermore, for females, the wage gap between mothers and non-mothers has increased over time, while for males, the changes are relatively small. Thereafter, we examine the gender wage gap associated with marriage and parental status, using panel data from the Socio-Economic Survey (SES) for 2005–2012, and find wage penalty for both motherhood and fatherhood in Thailand.