Editorial: Prying the Lid off Wage Compression

1989 ◽  
Vol 89 (7) ◽  
pp. 909
Author(s):  
Mary B. Mallison
Keyword(s):  
Wage Compression

Relative Demand and Supply of Skills and Wage Rigidity in the United States, Britain, and Western Germany

2008 ◽  
Vol 228 (5-6) ◽  
Author(s):  
Patrick A. Puhani
Keyword(s):  
United States ◽  
The United States ◽  
Relative Wage ◽  
Wage Rigidity ◽  
Data Sets ◽  
Group Model ◽  
Demand And Supply ◽  
Relative Demand ◽  
The Us ◽  
Wage Compression

SummaryI extend a two-skill group model by Katz and Murphy (1992) to estimate relative demand and supply for skills as well as wage rigidity in Germany. Using three data sets for Germany, two for Britain and one for the United States, I simulate the change in relative wage rigidity (wage compression) in all three countries during the early and mid 1990s, this being the period when unemployment increased in Germany but fell in Britain and the US. I show that in this period, Germany experienced wage compression (relative wage rigidity), whereas Britain and the US experienced wage decompression. This evidence is consistent with the Krugman (1994) hypothesis.

Explaining Black-White Wage Convergence, 1940–1950

ILR Review ◽  
1995 ◽  
Vol 48 (3) ◽  
pp. 470-481 ◽  
Author(s):  
Robert A. Margo
Keyword(s):  
Racial Differences ◽  
Internal Migration ◽  
Wage Gap ◽  
Decomposition Technique ◽  
Rapid Pace ◽  
Wage Convergence ◽  
Wage Compression

During the 1940s, racial differences in wages narrowed at an unusually rapid pace. Using a decomposition technique different from that of previous studies, the author shows that wage compression between and within groups—the so-called “Great Compression”—was a major factor behind racial wage convergence in the 1940s. In addition to wage compression, occupational shifts, internal migration, and diminishing racial differences in schooling helped to narrow the black-white wage gap between 1940 and 1950.

Intra-firm Wage compression and Coverage of Training Costs

ILR Review ◽  
2015 ◽  
Vol 69 (2) ◽  
pp. 435-454 ◽  
Author(s):  
Christian Pfeifer
Keyword(s):  
Training Costs ◽  
Wage Compression

scholarly journals The minimum wage as a wage equality policy: Evidence from North Macedonia

2019 ◽  
Vol 64 (223) ◽  
pp. 61-81
Author(s):  
Marjan Petreski ◽  
Nikica Mojsoska-Blazevski ◽  
Mariko Ouchi
Keyword(s):  
Minimum Wage ◽  
Labour Force ◽  
Spillover Effects ◽  
Wage Distribution ◽  
Wage Increase ◽  
Current Policy ◽  
Wage Level ◽  
Minimum Wage Increase ◽  
Wage Increases ◽  
Wage Compression

The paper aims to investigate if the minimum wage increase of September 2017 resulted in better wage equality in North Macedonia. The increase of 19% was sizable and included levelling up in the three sectors with a lower minimum wage: textiles, apparel, and leather. We extend the ?cell? approach of Card (1992a) and rely on data from the Labour Force Survey 2017 and 2018. The results suggest that the 2017 increase in the minimum wage had a positive, significant, and robust effect on wages. However, the wage increases were almost entirely positioned on the left side of the wage distribution and implied wage compression up to or around the minimum wage. The bunching around the new minimum wage level ?equalised? workers: those who previously earned the new minimum wage level equalised with the less productive workers who approximated their wage only by the power of the law. Hence, wage equality improved. The results confirm that the minimum wage can be an important wage equality policy, with considerably limited upward spillover effects in the current policy and institutional setup.

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