Why Did the College Wage Premium Growth Decelerate? An Analysis of Endogenous Supply of High-Skilled Workers

2017 ◽  
Author(s):  
Yiheng Huang
Keyword(s):  
Wage Premium ◽  
Skilled Workers ◽  
Endogenous Supply

Why do large firms pay higher wages? Evidence from matched worker‐firm data

2005 ◽  
Vol 26 (7/8) ◽  
pp. 705-723 ◽  
Author(s):  
Thierry Lallemand ◽  
Robert Plasman ◽  
François Rycx
Keyword(s):  
Private Sector ◽  
Firm Size ◽  
Wage Premium ◽  
Individual Characteristics ◽  
Substantial Part ◽  
Large Firms ◽  
Skilled Workers ◽  
Data Set ◽  
Content Type ◽  
Firm Data

PurposeThis paper analyses the magnitude and sources of the firm‐size wage premium in the Belgian private sector.Design/methodology/approachUsing a unique matched employer‐employee data set, our empirical strategy is based on the estimation of a standard Mincer wage equation. We regress individual gross hourly wages (including bonuses) on the log of firm‐size and insert step by step control variables in order to test the validity of various theoretical explanations.FindingsResults show the existence of a significant and positive firm‐size wage premium, even when controlling for many individual characteristics and working conditions. A substantial part of this wage premium derives from the sectoral affiliation of the firms. It is also partly due to the higher productivity and stability of the workforce in large firms. Yet, findings do not support the hypothesis that large firms match high skilled workers together. Finally, results indicate that the elasticity between wages and firm‐size is significantly larger for white‐collar workers and comparable in the manufacturing and the service sectors.Research limitation/implicationsUnfortunately, we are not able to control for the potential non‐random sorting process of workers across firms of different sizes.Originality/valueThis paper is one of the few to test the empirical validity of recent hypotheses (e.g. productivity, job stability and matching of high skilled workers). It is also the first to analyse the firm‐size wage premium in the Belgian private sector.

Value-chain activities and individual wages

2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Laura Márquez-Ramos
Keyword(s):  
Emerging Economies ◽  
Value Chain ◽  
Wage Premium ◽  
Value Chains ◽  
Skilled Workers ◽  
Content Type ◽  
Level Data ◽  
Advanced Economies ◽  
Micro Level ◽  
High Skill

Purpose The purpose of this paper is to contribute to a better understanding of whether emerging economies benefit or suffer more because of value-chain activities than advanced economies do. Specifically, it focuses on the consequences in terms of individual wages. Design/methodology/approach Panel data techniques are used to estimate an expanded Mincerian wage equation over the period 1995-2007. The analysis is performed using micro-level data for two countries that represent two different experiences of value-chain activities in Central Europe: Germany and Slovenia. Findings Increasing value-chain activities reduce wages for low-skilled workers in high-skill-intensive industries in Germany, hence driving up the skill wage premium. Conversely, evidence is found of a decreasing skill wage premium as a consequence of increasing value-chain activities in Slovenia. Finally, increasing value-chain activities reduces the wages of workers in low-skill-intensive industries in both Germany and Slovenia. Originality/value This paper analyses the effect of value-chain activities on wages. It is the first empirical assessment that brings individual wage data directly into the picture for an international comparison focussed on two Central European countries that represent “two faces” of value chains. This paper shows that the effects of increasing value-chain activities on wages differ by country, by industry and by individual skills.

The wage premium and market structure: theory and empirical evidence from Chilean manufacturers

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ruohan Wu ◽  
Mario Javier Miranda ◽  
Meng-Fen Yen
Keyword(s):  
Theoretical Model ◽  
Market Structure ◽  
Empirical Evidence ◽  
Market Competition ◽  
Wage Premium ◽  
Factor Endowment ◽  
Skilled Workers ◽  
Content Type ◽  
Wage Premiums ◽  
Relative Factor

PurposeThis paper aims to examine how the “wage premium,” the percentage by which wages earned by skilled workers exceed those of unskilled workers, varies across industries characterized by different levels of competitiveness.Design/methodology/approachA theoretical model employing constant elasticity of substitution (CES) utility function and constant returns to scale production function is developed and analyzed to derive the effects of industry competitiveness on the wage premium. Econometric methods are applied to Chilean manufacturing data to test implications of theoretical model.FindingsOnce the relative factor endowment is being controlled, market competition significantly reduces the wage premium. More specifically, given with the same relative factor endowment, the wage premium is significantly higher under oligopolistic competition than under monopolistic competition. Empirical evidence from Chilean manufacturers supports our theoretical conclusions.Practical implicationsDuring economic development, the reallocation of production factors from unskilled labor-intensive to skilled labor-intensive industries raises the wage premiums received by skilled workers. Besides, skilled workers will earn higher wages by working in more highly concentrated industries instead of more competitive industries. This needs to be considered by government policymakers who must balance promotion of technical change with prevention of extreme the income inequality.Originality/valueThis paper examines how market structure affects wage premiums, providing new insights into a well-established literature that largely maintains that wage premiums are primarily a function of relative factor endowments or international trade.

Shortage of Skills in the Labor Market: Limited Supply, Lack of Demand, or False Signals from Employers?

2004 ◽  
pp. 76-94 ◽  
Author(s):  
V. Gimpelson
Keyword(s):  
Labor Market ◽  
Competitive Market ◽  
Skilled Workers ◽  
Industrial Enterprises ◽  
Russian Industry ◽  
General Skills ◽  
Limited Supply

The article discusses the issue of shortage of skills in the Russian industry. Using microdata from a survey of industrial enterprises, the author confirms that most of employers complain of difficulties in hiring and attaching skilled workers. In case of mass occupations, this shortage relates mostly to low efficient enterprises, which are unable or unwilling to pay competitive market going wage. More efficient and better paying firms are less likely to face shortage of general skills on the labor market but may face limited supply of specific skills.

Implikasi Kemasukan Pekerja Asing Di Malaysia: Suatu Tinjauan Awal

Sains Insani ◽  
2018 ◽  
Vol 1 (1) ◽  
pp. 69-77
Author(s):  
Intan Suria Hamzah ◽  
Sity Daud
Keyword(s):  
Development Process ◽  
Foreign Worker ◽  
Foreign Workers ◽  
Skilled Workers ◽  
The World

Malaysia experienced a number of the entry of foreigners in the world, mainly as low-skilled workers. Malaysia has been experiencing shortage of workers in main sectors such as construction, agriculture, industrial and service. Foreign workers are workers came from other countries who come to work in Malaysia for a certain period, they are also known as economic’s workers. The study found that foreign workers give benefits for country development process in variuos sectors but with their numbers growing and reaching millions of peoples were disturbing economy and local communities.Keywords: Foreign worker, demand, economy, PATI, crime, security Abstrak: Malaysia mengalami jumlah kemasukan warga asing yang besar di dunia, terutamanya sebagai buruh berkemahiran rendah. Malaysia telah mengalami masalah kekurangan buruh dalam sektor-sektor utama negara seperti pembinaan, perladangan, perindustrian dan perkhidmatan. Pekerja asing atau buruh asing merupakan pekerja yang berasal dari negara luar yang datang bekerja di Malaysia bagi sesuatu tempoh tertentu, ianya juga dikenali sebagai buruh ekonomi. Hasil kajian, mendapati pekerja asing telah membawa manfaat dalam proses pembangunan negara Malaysia dalam pelbagai sektor namun begitu dengan jumlah mereka yang semakin meningkat dan mencecah jutaan orang telah mengganggu-gugat ekonomi dan masyarakat tempatan.Kata kunci: Pekerja asing, permintaan, ekonomi, PATI, jenayah, keselamatan.

Symbiotic Brain Drains

2017 ◽  
Author(s):  
Madeline Y. Hsu
Keyword(s):  
International Students ◽  
Knowledge Worker ◽  
The United States ◽  
Immigration Reform ◽  
Skilled Workers ◽  
Educational Exchange ◽  
Exchange Programs ◽  
Immigration Laws ◽  
Permanent Residency ◽  
The Cold War

This chapter analyzes immigration reform and the knowledge worker recruitment aspects of the Hart–Celler Act of 1965 to track the intensifying convergence of educational exchange programs, economic nationalism, and immigration reform. During the Cold War, the State Department expanded cultural diplomacy programs so that the numbers of international students burgeoned, particularly in the fields of science. Although the programs were initially conceived as a way of instilling influence over the future leaders of developing nations, international students, particularly from Taiwan, India, and South Korea, took advantage of minor changes in immigration laws and bureaucratic procedures that allowed students, skilled workers, and technical trainees to gain legal employment and eventually permanent residency and thereby remain in the United States.

Urban Wage Premium for Women Across the Wage Distribution

2020 ◽  
Author(s):  
Eloiza Regina Ferreira de Almeida ◽  
Veneziano Araujo ◽  
Solange Gonçalves
Keyword(s):  
Wage Premium ◽  
Wage Distribution ◽  
Urban Wage Premium
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