A note on black-white wage disparity

Conclusion The evidence in this article helps to explain the black-white earnings differential in 1970, six years after the passage of Fair Employment Legislation, in terms of traditional measures such as experience and education along with a public policy measure that has of late come under fire. And contrary to the notion that the gains from such government policy have not benefited the less fortunate workers but simply accrued only, or mainly, to upper- or middle-class blacks, the results presented here indicate that enforcement, such as it is, has had beneficial effects for black men and women in virtually all major occupational categories. When a distinction is made between the various major occupational categories, the importance of education and experience as factors that contribute toward explaining black-white earnings differentials is generally supported by this study. However, neither education nor experience shows a consistent explanatory power across occupational categories and especially across the sexes. For example, experience is more frequently found to be a significant factor for black men than it is for black women. Education, on the other hand, was found to have no statistically significant relationship with wage differentials in major blue-collar job categories for both men and women, thus lending some credence to the dual labor market thesis regarding returns to education. By far the factor we have found to be the most consistent with respect to its impact upon racial wage differentials for both men and women is the fair employment variable. Indeed, across major occupational groups the existence and enforcement of fair employment laws seems to have had, generally, a more significant effect on reducing racial wage differentials than each of the other independent variables.     

Labor force competition and the black-white wage gap

Have the increasing numbers of women and immigrants in the U.S. labor force adversely affected the relative earnings of black men? A recent article in this journal argued that they have, based on empirical analysis of 1970 census data. The present study begins with a critique of both the theoretical assumptions and the empirical methods of this earlier article. A regression analysis of 1980 census data is then undertaken, which indicates that recent immigration has not had a negative impact on the relative wages of central-city black men. The findings also suggest that while higher rates of female labor force participation are statistically associated with lower black-white wage ratios, this effect is limited to teenagers.     

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.     

A regional analysis of black male-white male wage differences

This research indicates that labor market outcomes for black males in terms of hourly wages differed markedly from region to region over the 1976 to 1984 period. And although black males faced a substantial amount of discriminatory treatment in all regions, the amounts varied significantly by region.     

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.     

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.     

Analysis of wage differentials by gender and ethnicity in the public sector

This study investigates the source of wage differentials between blacks, Hispanics, and whites, and between women and men, in metropolitan Dade County (Florida) government, and draws out the implications of this analysis for affirmative action planning. Our distinctive finding is that the primary factor causing observed wage differentials by ethnicity is the sorting of people across occupational categories. Wage decompositions reveal that for males, 70 percent, 88 percent, and 47 percent of the wage gaps between white and black, white and Hispanic, and Hispanic and black, respectively, are attributable to occupation. For females, the corresponding figures are 56 percent, 58 percent, and 51 percent. When comparing men and women of the same ethnic group, occupational employment patterns are found to be an important factor accounting for lower average female wages, yet within major occupational groups women seem to be receiving higher wages (on average) than men.     

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.     

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.

     

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.

     

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 research on wage status and wage expectations of migrant workers in Hulan District

Since 2004, there has been the succession of migrant workers labor shortage all over the country. Among the factors causing farmers to hunt jobs in cities, wage plays a decisive role. So in this paper, it made an investigation and research on wages status and salary expectations of migrant workers in Hulan District. There are three main problems of migrant workers wages in Hulan District： The migrant workers＇ average wage is less than the community average wage; the wages were cut down in fact because of long working hours, as well as the low rate of return. In this district, the wage expectation of migrant workers on average is between 1341.8 and 1496.9 Yuan, that is 0.91-1.01 times as many as local minimum wage standard （after adding the overtime pay）; and 0.98-1.12 times as many as AVG salary last year. At last, it gives some suggestions： The enterprises should raise the standard of wages referring to the wage expectation of local migrant workers; local government should enhance skill trainings for migrant workers.     

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.     

A politicoeconomic model of wage inflation

Summary The paper employs a public choice perspective to develop a model of centralized union wage bargaining. The actors considered are political parties, employers' federations, voters, union officials and members of the rank and file, with the emphasis being put on the latter three. Control theory is used to analyze bargaining outcomes in a dynamic context. The theoretical consequences of the model, which stress the importance of political variables such as government ideology, preferences of the rank and file members, election dates and the degree of union centralization on wage inflation, are supported by West German data.Helpful comments from Chris Goodrich and an anonymous referee of this Journal are gratefully acknowledged.     

Equal Employment Opportunity Law and the gender wage gap in Japan: A cohort analysis

In this article, I perform a cohort-based analysis of the female-to-male wage gap using aggregate data in Japan from 1975 to 2005. While the inter-cohort closing in the gender wage gap is apparent, the convergence is smaller when the gap is calculated for each level of education. This pattern suggests that a certain portion of the gender wage convergence is due to changes in the educational composition of the workforce. I find that educational composition changes played a larger role in closing the pay gap for younger cohorts than it did for older cohorts. Highly educated women who entered the labor market after the enactment of the Equal Employment Opportunity Law gained in that they had more regular full-time employment but did not experience wage gains relative to their male counterparts.     

Eastern Germany and the conflict between wage adjustment,investment, and employment: A numerical analysis

Eastern Germany and the Conflict between Wage Adjustment, Investment, and Employment: A Numerical Analysis. — In this paper, some light is shed on the dynamics of the adjustment process in eastern Germany by studying the linkages between the dynamics of wage adjustment, investment, and employment. An extended dynamic investment model, which includes adjustment costs for capital and revision costs for investment, is presented. This model is specified according to the east German economy and analyzed numerically by an optimization method based on direct collocation. Results are obtained for the time horizon of adjustment and for the implications of different wage strategies on the path of investment and employment.     

Globalization and wage inequalities: A synthesis of three theories

Globalization and Wage Inequalities: A Synthesis of Three Theories. — The theoretical insights of Heckscher and Ohlin, Feenstra and Hanson, and Tang and Wood provide a plausible explanation of the effects of globalization on wage inequalities in developed and developing countries. In combination, these three theories can explain, among other things, why inequality has fallen in some developing countries but risen in others. Improved travel and communications facilities raise the relative wages of highly skilled Northern workers, but in both the North and the South have mixed effects on wage gaps between medium-skilled and unskilled workers, sometimes reinforcing and sometimes offsetting the effects of falling barriers to trade.