Wage Structure

Lithuania is a transition economy undergoing rapid enterprise restructuring associated with substantial job turnover. At the same time, unemployment in Lithuania is high and of long duration. This presents a puzzle: high job turnover epitomizes labor market flexibility, while high unemployment indicates labor market rigidities. What are the reasons behind this paradox? Why do the unemployed not benefit from job

The purpose of this paper is to investigate wage structures of professional workers in the Israeli labor market using data from the 1983 Israeli census and correcting for selectivity at the state of entrance into the occupation. The sample of professionals is decomposed into several subsamples: Jewish men and Jewish women; within the Jewish sample a distinction is made between Westerners and Easterners. The core of this study is the investigation of wage differentials between the various groups, taking into account differences in entrance probabilities. The standard Oaxaca decomposition does not take into account different probabilities of entering the professional occupations (i.e., occupational segregation). In order to incorporate this type of segregation into the wage differential decompositions, two statistical methodologies are merged: the Oaxaca methodology and the Heckman selectivity bias correction procedure. The decomposition procedure is then modified in order to take int...

This article carries out an empirical examination of the origin of the differences between immigrant and native-born wage structures in the Spanish labour market. Special attention is given in the analysis to the role played by occupational and workplace segregation of immigrants. Legal immigrants from developing countries exhibit lower mean wages and a more compressed wage structure than native-born workers. By contrast, immigrants from developed countries display higher mean wages and a more dispersed wage structure. The main empirical finding is that the disparities in the wage distributions for the native-born and both groups of immigrants are largely explained by their different observed characteristics, with a particularly important influence in this context of workplace and, specially, occupational segregation.

Overall, if the labour markets would be accepted as two polarized blocks, surveying the economic and social dimensions of wages will be pertinent. It has become a confliction between employers and employes, shuttered in this distinction, a fair regulation of wages for many economists were forced to detect new formulas. However, in the labour economics literature such secondary actors employes and employers; have to accept the existence of government and unions. These secondary actors acquirement from labour markets seat the economic balance on a quartet trivet. So far, in observance of the doctrinal explanation that it can be obtained is a multi-dimensional and multi-functional wage model on the basis of four actors in the labour market can be reached will contribute to the balance.

A vast literature has sought to assess the magnitude of inter-industry differences in pay and explain why they exist. The measurement of inter-industry pay differentials and the resulting use of this information to assess the empirical relevance of different labor market theories have been hampered, however, by the fact that measures of total compensation -- as opposed to just wages

This paper deals with the impact of migrant workers on the Israeli wage structure, on the chances of being unemployed or out of the labor force and on inequality in gross earnings from work. One of the manifestations of globalization is the movement of migrant workers from low-income to richer countries.The recent increase in living standards in Israel has created significant wage differentials for workers from low-income countries. Paradoxically,an important trigger for this process was also the worsening of Israel’s security situation in 1993,following the Oslo accord between Israel and the Palestinians.Israel responded to the deterioration by closures,which sharply reduced the number of Palestinian workers in Israel,substituting them with migrant workers, mainly from Eastern Europe,South and Central America and the Far East. The rapid inflow of migrant workers,especially since 1995,makes Israel an interesting case study for studying its effects on labor force participation, unemp...

In this paper we analyse the role of education on the dynamics of wage structure in Italy. We derive three main results in a quintile regression framework, using SHIW data over the period 1993-2004. First, educational wage premia decline over time almost uniformly ...

There are two findings that are conspicuous in almost all studies of individual wage determination. First, standard cross-section wage equations rarely account for more than half of the total variance in earnings between individuals. Second, there are large and persistent inter-industry wage differentials and these are frequently attributed to non-competitive forces in wage determination. This paper explores these two issues

In this paper we estimate the impact of inward migration flows on the Spanish wage structure over the period 1995-2002 by constructing counterfactual wage distributions that provide the wages that would have been observed had individual and job characteristics remain constant over time. Hence, we compute the impact of immigration on the wage distribution from (i) the estimated wage gaps between similar immigrants and native workers and (ii) the changes in the composition of employment associated to the arrival of new immigrants. Overall, we find that (i) the effects of immigration on wage changes are small and only noticeable when job characteristics are included as determinants of wages, and (ii) the correlation between the incidence of immigration in each decile of the wage distribution and the change in native wages not explained by changes in their individual and job characteristics is positive. These results suggest that other factors, besides immigration, should be identified ...