Public- and Private-Sector Wage Differentials in Canada Revisited

Using a variety of techniques, we estimate the wage premium for federal, provincial, and municipal public-sector employees in Canada. We find that females in the public sector are paid a wage premium, with federal government workers enjoying the highest rents, followed by local and provincial public-sector employees. Estimates for males suggest that rent payments are comparably less, but results are inconclusive.     

Job Attributes and Federal Wage Differentials

As part of the debate on how to treat attributes of a job (as opposed to a worker) when measuring federal differentials, the focus has been on the proper treatment of employer size. Using employer size, we highlight the two extremes in the literature of either holding job attributes constant or of assuming attributes do not transfer between sectors. A third alternative-estimating the extent to which the attribute will transfer-is much closer in value to that generated by holding employer size constant.     

Industry Wage Differentials and Wait Unemployment

This analysis uses individual-level data to test the industry wage differential-wait unemployment hypothesis. Using the 1988 Bureau of Labor Statistics Displaced Worker Survey, it examines the role of predisplacement industry in determining the length of jobless spells and finds some evidence consistent with wait unemployment. The analysis also considers the incidence of joblessness separately from duration and finds that factors positively related to the occurrence of a spell are not necessarily positively related to its ultimate length.     

Compensating Wage Differentials in the Union and Nonunion Sectors

This paper tests for the existence of structurally different compensating payments in the union and nonunion sectors of the economy. Significant differences may stem from the different mechanisms by which such payments are determined: markets are the primary mechanism in the nonunion sector, while Political processes play a major role in the union sector. The empirical results provide tentative support for the structural differences hypothesis; They also reveal an absence of positive and significant compensating payments in nonunion labor markets.     

Public Wage Differentials and the Public Administration "Industry"

The public sector consists of two broad sub samples, administrators and no administrators. The two groups have very different occupational compositions and contrasting patterns of compensation. Inconsistent treatment of these sub samples has led to past government differentials, which are not comparable. While administrators remain overpaid relative to their private sector counterparts, no administrators are underpaid relative to their counterparts. Moreover, public wage differentials way substantially in sign and magnitude from industry to industry. Such results demonstrate that no simple, homogeneous government differential exists.     

The Price is Right? Pay Settlements and Nominal Wage Rigidity in Britain

We examine representative, group‐level wage settlement data to augment the debate on nominal pay rigidity in Britain. We investigate the characteristics of groups that settle at zero and the role of within‐firm and external influences. Nominal settlement cuts are rare. Zero nominal wage settlements are more common, but still relatively unusual, highest during (low‐inflation) recessionary periods. Small groups, above all firms under duress, appear most likely to settle at zero. Once a group settles at zero it is unlikely to do so again in the short run.     

Wage Differentials by Race and Sex: The Roles of Taste Discrimination and Labor Market Information

Using a unique dataset, this article first documents that gaps in starting wages by race and sex persist after accounting for performance on the job. Evidence suggests that simple statistical discrimination, and not just taste discrimination, is partly responsible for race differences in starting wages. But because women's average performance in the sample is higher than men's, simple statistical discrimination cannot explain the sex gap. In more complex models of statistical discrimination, worse information about a group can lower its average wage. Estimates of the quality of labor market information indicate that this may explain women's lower starting wages.     

The Effect of International Unions on Wage Determination in Canada

This article uses collective bargaining agreement wage data spanning 1964–92 to analyse the effect of international unions on wage determination in Canadian manufacturing. Real wage levels for international unions relative to domestic unions are estimated to decline from approximately 4 per cent higher in the 1960s to 4 per cent lower in the 1990s. International unions are also found to be more responsive to US economic conditions. Finally, affiliation with different union federations is a significant determinant of real wage outcomes with AFL–CIO affiliated unions having lower real wages, on average.     

The Gender Pay Gap for Private‐Sector Employees in Canada and Britain

The gender earnings differentials for private‐sector employees in Britain and Canada are similar, substantial and significant. Using linked employer–employee data, we show that women are more likely to be employed in low‐wage workplaces than men in both counties. After accounting for the workplace, women continue to earn less than comparable men. Although men and women face a more equal pay structure within their workplace than they do across workplaces, a substantial portion of the gender pay gap in both countries remains unexplained by the individual characteristics or workplace effects considered in this study.     

Personnel Decisions,Wage Profiles and Investment in Firms

An investment model where firms mitigate adverse hold‐up effects using hiring and personnel policies is theoretically investigated and empirically scrutinized. While no evidence for the prediction of differing worker characteristics, other than gender, across firms is found, demand (firm) side factors are evident in the hiring process. Evidence on other personnel policies is consistent with theory, which predicts firms with high‐investment expenditures resist unions, utilize more temporary and shift‐time workers and conduct more multitask training. Wages in high‐investment firms are higher, more sensitive to unemployment and experience variables that exhibit greater effects than in low‐investment firms.     

Market Structure, Strike Activity, and Union Wage Settlements

We attempt a synthesis of the industrial relations market structure hypothesis with the modern asymmetric information theory of wage and strike outcomes. The industrial relations literature contains arguments indicating that wage settlements should be positively related to the degree of product market sales concentration and the degree of product market coverage by the union. In our empirical analysis of the periods 1970–1980 (strikes) and 1976–1980 (wages), we find that the relation between trade-adjusted sales concentration and wage settlements is positive at low and intermediate levels of concentration but negative at the highest levels of concentration. The relation is always negative for strike probabilities. We also find that the trade-adjusted per cent of the product market covered by the same union and the percentage covered by other unions are positively related to both wage settlements and strike probabilities.     

Flexible Work and Immigration in Europe

Immigration has risen substantially in many European economies, with far‐reaching if still uncertain implications for labour markets and industrial relations. This article investigates such implications, focusing on employment flexibility, involving both ‘external flexibility’ (fixed‐term or temporary agency and/or involuntary part‐time work) and ‘internal flexibility’ (overtime and/or balancing‐time accounts). The article identifies reasons why immigration should generally increase the incidence of such flexibility, and why external flexibility should rise more than internal flexibility. The article supports these claims using a dataset of establishments in 16 European countries.     

Macroeconomic Constraints, Social Learning and Pay Bargaining in Europe

This paper argues that European integration has constrained the discretion of industrial relations actors. The result has been not the widely predicted institutional fragmentation of collective bargaining, but a change in the functioning of these systems. At the same time, widespread 'social dumping' on the part of firms and member states has not materialized. The paper argues that the 'race to the bottom' thesis gives insufficient weight to the socialization mechanisms attached to the European integration process. Thus macroeconomic constraints and social learning processes are co-mingling with one another in European industrial relations.     

Ownership and Pay in Britain

Drawing on principal–agent perspectives on corporate governance, the article examines whether employees’ hourly pay is related to ownership dispersion. Using linked employee‐workplace data from the British Workplace Employment Relations Survey 2011, and using a variety of techniques including interval regression and propensity score matching, average hourly pay is found to be higher in dispersed ownership workplaces. The premium is broadly constant across most of the wage distribution, but falls at the 95th percentile to become statistically non‐significant. This contrasts with earlier papers which indicate that higher level employees are the primary beneficiaries of higher pay from dispersed ownership. The dispersed ownership pay premium is not readily explained by efficiency wage perspectives but is consistent with a managerial desire for a ‘quiet life’.     

Immigration,Labour Markets and Employment Relations: Problems and Prospects

In this review essay, I argue that immigration presents employment researchers with a promising strategic research site because it raises a number of theoretically significant problems with mainstream economic approaches to labour and labour markets. Despite the tendency to view economic migrants as homo economicus personified, I argue that immigration brings the institutional nature of labour markets into sharp relief as it exposes, among other things, the influence of the state, processes of labour market segmentation, and the role of trade union policy and practice. Having identified a number of empirical anomalies that contradict neoclassical economic theory, I proceed to sketch out three areas where a more institutionally oriented approach should prove more fruitful.     

Collective Bargaining and Wage Dispersion in Europe

The level at which collective bargaining takes place is usually considered important in determining wage levels and wage inequalities. Two different situations are considered: a first in which bargaining is only ‘multi‐employer’, and a second in which it is ‘multi‐level’, in the sense that workers can be covered by both a ‘multi‐employer’ and a ‘single‐employer’ contract at the same time. The purpose of this paper is to analyse the impact of these different institutional settings on pay dispersion. The study is carried out using the European Structure of Earnings Survey, which is a large dataset containing detailed matched employer–employee information for the year 1995. The countries analysed are Italy, Belgium and Spain. The empirical results generally show that wages of workers covered by only a ‘multi‐employer’ contract are no more compressed than those of workers covered by both ‘multi‐employer’ and ‘single‐employer’ contracts. This implies that where workers are not covered by single‐employer bargaining, they receive wage supplements paid unilaterally by their employers.