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  • Literaturhinweis

    Human capital formation and changes in low pay persistence (2023)

    Dasgupta, Kabir ; Plum, Alexander ;

    Zitatform

    Dasgupta, Kabir & Alexander Plum (2023): Human capital formation and changes in low pay persistence. In: Applied Economics, Jg. 55, H. 56, S. 6583-6604. DOI:10.1080/00036846.2022.2161989

    Abstract

    "This study presents new empirical evidence on the role of time trends in low pay persistence. We utilize population-wide tax records to track monthly labour market trajectories of initially low-paid workers. By performing age- and qualification-specific regressions, we find that low pay persistence reduces with time. However, the magnitude is highly heterogeneous across workforce characteristics. For a qualified worker in their early 20s, the risk of staying on low-pay declines by, on average, 5–10% points after one year. For a worker in their 50s, persistence remains almost unchanged regardless of their qualification level. We conclude that policy initiatives need to be more nuanced than a simple one-size-fits-all approach by accounting for time trends in low-pay persistence." (Author's abstract, IAB-Doku) ((en))

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    Low-skill jobs or jobs for low-skilled workers?: An analysis of the institutional determinants of the employment rates of low-educated workers in 19 OECD countries, 1997 - 2010 (2015)

    Abrassart, Aurélien;

    Zitatform

    Abrassart, Aurélien (2015): Low-skill jobs or jobs for low-skilled workers? An analysis of the institutional determinants of the employment rates of low-educated workers in 19 OECD countries, 1997 - 2010. In: Journal of European social policy, Jg. 25, H. 2, S. 225-241. DOI:10.1177/0958928715573485

    Abstract

    "We often hear that the high unemployment rates of low-educated workers in Europe are due to the rigidities of the institutions increasing the labour costs that burden employers. In this article, we challenge this traditional view and offer alternative explanations to the cross-national variation in the employment rate of low-educated workers. Using macro-data and an error correction model, we analyse the determinants of the creation of jobs for low-educated workers in 19 countries between 1997 and 2010. Our findings tend to invalidate the neoliberal view, while also pointing to the positive impact of investing in public employment services and the predominant role of economic growth, which can be weakened by union density and employment protection in the case of male workers. Last but not least, creating low skill jobs has no or little impact on the employment outcomes of low-educated workers, thus indicating job displacement issues." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Cognitive skills matter: the employment disadvantage of low-educated workers in comparative perspective (2013)

    Abrassart, Aurélien;

    Zitatform

    Abrassart, Aurélien (2013): Cognitive skills matter: the employment disadvantage of low-educated workers in comparative perspective. In: European Sociological Review, Jg. 29, H. 4, S. 707-719. DOI:10.1093/esr/jcs049

    Abstract

    "It is now a widely acknowledged fact that the low-educated workers are facing important risks of labour market exclusion in modern economies. However, possessing low levels of educational qualifications leads to very different situations from one country to another, as the cross-national variation in the unemployment rates of these workers attest. While conventional wisdom usually blames welfare states and the resulting rigidity of labour markets for the low employment opportunities of low-educated workers, empirical evidence tends to contradict this predominant view. Using microdata from the International Adult Literacy Survey that was conducted between 1994 and 1998, we examine the sources of the cross-national variation in the employment disadvantage of low-educated workers in 14 industrialized nations. In particular, we test the validity of the conventional theories concerning the supposedly harmful effect of labour market regulation against a new and promising hypothesis on the importance of cognitive skills for the employment opportunities of the low-educated workers. Our findings support the latter and suggest that the greater the cognitive gap between the low-educated workers and those with intermediate education, the lower the chances of being employed for the former relatively to their higher educated counterparts." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Are low-skill public sector workers really overpaid?: a quasi-differenced panel data analysis (2013)

    Siminski, Peter;

    Zitatform

    Siminski, Peter (2013): Are low-skill public sector workers really overpaid? A quasi-differenced panel data analysis. In: Applied Economics, Jg. 45, H. 14, S. 1915-1929. DOI:10.1080/00036846.2011.641928

    Abstract

    "Public-private sectoral wage differentials have been studied extensively using quantile regression techniques. These typically find large public sector premiums at the bottom of the wage distribution. This may imply that low skill workers are 'overpaid', prompting concerns over efficiency. We note several other potential explanations for this result and explicitly test whether the premium varies with skill, using Australian data. We use a quasi-differenced Generalized Method of Moments (GMM) panel data model which has not been previously applied to this topic, internationally. Unlike other available methods, this technique identifies sectoral differences in returns to unobserved skill. It also facilitates a decomposition of the wage gap into components explained by differences in returns to all (observed and unobserved) skills and by differences in their stock. We find no evidence to suggest that the premium varies with skill. One interpretation is that the compressed wage profile of the public sector induces the best workers (on unobserved skills) to join the public sector in low wage occupations, vice versa in high wage occupations. We also estimate the average public sector premium to be 6% for women and statistically insignificant (4%) for men." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    The effect of overskilling dynamics on wages (2012)

    Mavromaras, Kostas; Sloane, Peter; Mahuteau, Stephane; Wei, Zhang;

    Zitatform

    Mavromaras, Kostas, Stephane Mahuteau, Peter Sloane & Zhang Wei (2012): The effect of overskilling dynamics on wages. (IZA discussion paper 6985), Bonn, 34 S.

    Abstract

    "We use a random effects dynamic probit model to estimate the effect of overskilling dynamics on wages. We find that overskilling mismatch is common and more likely among those who have been overskilled in the past. It is also highly persistent, in a manner that is inversely related to educational level. Yet, the wages of university graduates are reduced more by past overskilling, than for any other education level. A possible reason for this wage effect is that graduates tend to be in better-paid jobs and therefore there is more at stake for them if they get it wrong." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Cognitive skills matter: The employment disadvantage of the low-educated in international comparison (2011)

    Abrassart, Aurelien;

    Zitatform

    Abrassart, Aurelien (2011): Cognitive skills matter: The employment disadvantage of the low-educated in international comparison. (Working Papers on the Reconciliation of Work and Welfare in Europe. REC-WP 04/2011), Edinburgh, 26 S.

    Abstract

    "It is now a widely acknowledged fact that the low-skilled are facing important risks of labour market exclusion in modern economies. However, possessing low levels of educational qualifications leads to very different situations from one country to another, as the cross-national variation in the unemployment rates of the low-skilled attest. While conventional wisdom usually blames welfare states and the resulting rigidity of labour markets for the low employment opportunities of low-skilled workers, empirical evidence tends to contradict this predominant view.
    Using microdata from the International Adult Literacy Survey that was conducted between 1994 and 1998, we examine the sources of the cross-national variation in the employment disadvantage of low-skilled workers in 14 industrialized nations. In particular, we test the validity of the conventional theories concerning the supposedly harmful effect of labour market regulation against a new and promising hypothesis on the importance of cognitive skills for the employment opportunities of the low-educated. Our findings support the latter and suggest that the employment disadvantage the low-educated experience relatively to medium-educated workers is mainly due to their deficit in the skills that have become so important for labour market success in the recent past, namely cognitive skills." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Context matters: economic marginalization of low-educated workers in cross-national perspective (2011)

    Gesthuizen, Maurice; Solga, Heike ; Künster, Ralf;

    Zitatform

    Gesthuizen, Maurice, Heike Solga & Ralf Künster (2011): Context matters: economic marginalization of low-educated workers in cross-national perspective. In: European Sociological Review, Jg. 27, H. 2, S. 264-280. DOI:10.1093/esr/jcq006

    Abstract

    "This article explains the different extent of economic marginalization of low-educated persons in different countries. Research on economic marginalization mainly studies the so-called displacement mechanism: the higher the high-skill supply is in relation to the high-skill demand, the higher is the risk of being unemployed for low-educated workers. In this article, we examine their economic marginalization in terms of status position. This research expands the explanation of economic marginalization of low-educated workers by scrutinizing additional causes, such as negative social selection, negative cognitive competence selection, and the increasing negative signal of being low educated (discredit). The results of the country comparison, using multilevel estimation techniques with inclusion of cross-level interactions, depict that, indeed, educational differences in socio-economic status attainment are larger in countries where the average competence of the group is low, the social composition is unfavourable, and the size of the low-educated group is relatively small. By considering these additional explanations, we are now better able to understand the economic vulnerability of low-educated people in educationally expanded countries." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    The quest for fairness in Australian minimum wages (2011)

    Healy, Joshua;

    Zitatform

    Healy, Joshua (2011): The quest for fairness in Australian minimum wages. In: The Journal of Industrial Relations, Jg. 53, H. 5, S. 662-680. DOI:10.1177/0022185611419618

    Abstract

    "The attainment of 'fairness' is widely regarded as a worthy goal of setting minimum wages, but opinions differ sharply over how to achieve it. This article examines how interpretations of fairness shaped the minimum wage decisions of the Australian Industrial Relations Commission between 1997 and 2005. It explores the Commission's approaches to three aspects of fairness in minimum wages: first, eligibility for increases; second, the form of increase; and third, the rate of increase over time. The Australian Industrial Relations Commission consistently gave minimum wage increases that were expressed in dollar values and applied to all federal awards. Its decisions delivered real wage increases for the lowest paid, but led to falls in real and relative wages for the majority of award-reliant workers. Fair Work Australia, the authority now responsible for setting minimum wages in the national system, appears apprehensive about parts of the Australian Industrial Relations Commission's legacy and has foreshadowed a different approach, particularly with respect to the form of adjustment." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Life on the minimum wage in Australia: an empirical investigation (2010)

    Dockery, Alfred Michael; Seymour, Richard; Ong, Rachel;

    Zitatform

    Dockery, Alfred Michael, Richard Seymour & Rachel Ong (2010): Life on the minimum wage in Australia. An empirical investigation. In: Australian Journal of Labour Economics, Jg. 13, H. 1, S. 1-26.

    Abstract

    "From 2006 to 2009, Federal minimum wages in Australia were set by the Australian Fair Pay Commission. This paper uses data from the Household, Income and Labour Dynamics in Australia panel survey to investigate the circumstances of persons who are paid at or near the minimum wage, and thus potentially affected by the wage determinations. Net disposable incomes for actual and potential minimum wage workers are modelled in and out of work to investigate the implications of the wage determinations on work incentives. In addition, a range of measures of socioeconomic status and wellbeing are inspected. Comparisons are made with selected groups of non-employed persons and those with higher earnings to highlight the potential costs and benefits for affected individuals, and hence the potential trade-offs faced in setting minimum wages if we accept that increases in minimum wages reduce employment opportunities." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    How should minimum wages be set in Australia? (2010)

    Watts, Martin J.;

    Zitatform

    Watts, Martin J. (2010): How should minimum wages be set in Australia? In: The Journal of Industrial Relations, Jg. 52, H. 2, S. 131-149. DOI:10.1177/0022185609359441

    Abstract

    "Two recurring themes in submissions by industry groups and the Coalition Government to Safety Net Cases administered by both the Australian Industrial Relations Commission and the Australian Fair Pay Commission, as well as in decisions by both Commissions, have been that (1) an improvement in the tax/transfer arrangements for the low paid is a partial substitute for minimum wage increases; and (2) the family circumstances of low wage recipients should influence the degree of minimum wage adjustment. In this paper it is argued that conflation of the wage and tax/transfer systems introduces major contradictions into the principles of minimum wage adjustment, and that reliance on the tax/transfer system leads to adverse economic and social consequences. A simple rule for minimum wage adjustment is advocated, with the minimum wage level also being periodically recalibrated to enable the ongoing social inclusion of its recipients. Finally, in the international literature, the macroeconomic consequences of modest minimum wage adjustment remain contested, but this debate becomes largely irrelevant if the Federal Government renews its commitment to full employment through a Job Guarantee. Then the minimum wage also becomes the nominal anchor of the wage and price system." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Who are minimum and sub-minimum wage workers? (2009)

    Pacheco, Gail;

    Zitatform

    Pacheco, Gail (2009): Who are minimum and sub-minimum wage workers? In: International Journal of Manpower, Jg. 30, H. 6, S. 529-548. DOI:10.1108/01437720910988966

    Abstract

    "The purpose of this paper is to provide a comprehensive portrait of who earns the minimum wage, in terms of the characteristics of the individual that are most important in determining this outcome. This study uses individual data from the Annual Income Supplements of the New Zealand (NZ) Household Labour Force Surveys between June 1997 and June 2004. This unit record data allows isolation of workers earning the minimum wage or close to it. A more sophisticated quantitative analysis is also carried out, where the probability of earning at or below the minimum wage is modelled to estimate what individual characteristics are most significant in determining minimum wage status. One of the key findings was that individual characteristics (such as age) are much more important than household circumstance or industry affiliations, in terms of the probability of earning minimum wage." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    A comparative review of workfare programmes in the United States, Canada and Australia (2008)

    Crisp, Richard; Fletcher, Del Roy;

    Zitatform

    Crisp, Richard & Del Roy Fletcher (2008): A comparative review of workfare programmes in the United States, Canada and Australia. (Department of Work and Pensions. Research report 533), London, 24 S.

    Abstract

    "Hallam University were commissioned to undertake a literature review of international evidence of workfare programmes. Three countries were chosen as offering interesting and relevant examples of workfare type programmes: the US, Canada and Australia. It was clear from the outset that it would not be possible to import wholesale programmes from other countries into the UK, but that there would be key lessons. The report refers to key features that help participants on workfare programmes into employment. Insisting on some job search for participants during the programme is vital to ensure that they do not become dependent on this form of employment and actually move into the open labour market. The second key feature is treating participants' barriers to work and not just their lack of work experience. Additional support for those with drink and drug problems and basic employability skills helps improve participants' chances of finding work. The report points to evidence that full-time activity in such programmes leads to improved job outcomes: between a half and two-thirds of leavers found unsubsidised work at some point in the three years after leaving the Wisconsin programme. Australia's 'Work for the Dole' had a 7 per cent net increase in participants going into jobs compared to nonparticipants." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    State dependence in youth labor market experiences, and the evaluation of policy interventions (2008)

    Doiron, Denise; Gorgens, Tue;

    Zitatform

    Doiron, Denise & Tue Gorgens (2008): State dependence in youth labor market experiences, and the evaluation of policy interventions. In: Journal of econometrics, Jg. 145, H. 1/2, S. 81-97. DOI:10.1016/j.jeconom.2008.05.010

    Abstract

    "We investigate the extent and type of state dependence in labor market outcomes for young low-skilled Australians. Our model allows for three labor force states, employment, unemployment and out of the labor force, and for observed and unobserved heterogeneity. We find evidence of occurrence dependence, but no lagged duration dependence. A past employment spell increases the probability of employment in the future, but the length of the spell does not matter. A past spell of unemployment undoes the positive benefits from a spell in employment. Interpretations of these effects and implications for labor market policies are discussed." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Job quality and flexible practices: an investigation of employee perceptions (2008)

    Wilson, Kelly; Brown, Michelle; Cregan, Christina;

    Zitatform

    Wilson, Kelly, Michelle Brown & Christina Cregan (2008): Job quality and flexible practices. An investigation of employee perceptions. In: The international journal of human resource management, Jg. 19, H. 3, S. 473-486. DOI:10.1080/09585190801895544

    Abstract

    "Job quality debates in Australia are dominated by two major concerns: the skill level of employees and the growing incidence of contingent employment. The Hackman and Oldham (1980) job quality model provides the theoretical basis for an investigation of a major aspect of job quality ('skill variety') among both casual and permanent employees. This article reports the findings of three investigations using data from 3,097 employees collected from a longitudinal study in Australia. The first investigation compared the job quality perceptions of permanent and casual employees; the second examined the perceptions of full-time casual employees and part-time casual employees relative to permanent employees; and the third examined the impact of ongoing casual employment on the perceived level of job quality. The findings demonstrate that employees in casual jobs - especially those in part-time casual jobs - perceived that they had lower job quality than employees in permanent work. Employees who were engaged in casual employment in both 2001 and 2002 were more likely to report low job quality in 2002." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Youth minimum wage reform and the labour market in New Zealand (2007)

    Hyslop, Dean; Stillman, Steven ;

    Zitatform

    Hyslop, Dean & Steven Stillman (2007): Youth minimum wage reform and the labour market in New Zealand. In: Labour economics, Jg. 14, H. 2, S. 201-230. DOI:10.1016/j.labeco.2005.10.001

    Abstract

    "This paper analyses the effects of a large reform in the minimum wages affecting youth workers in New Zealand since 2001. Prior to this reform, a youth minimum wage, applying to 16-19 year-olds, was set at 60% of the adult minimum. The reform had two components. First, it lowered the eligible age for the adult minimum wage from 20 to 18 years, and resulted in a 69% increase in the minimum wage for 18 and 19 year-olds. Second, the reform raised the youth minimum wage in two annual steps from 60% to 80% of the adult minimum, and resulted in a 41% increase in the minimum wage for 16 and 17 year-olds over a two-year period. We estimate the impact of this reform by comparing average outcomes for these two groups of teenagers, before and after the change, to those for 20-25 year-olds, who were unaffected by the reform. We find no evidence of adverse effects on youth employment immediately following the reform, but some weak evidence of employment loss by 2003. We also find evidence of a 10-20% increase in hours worked following the reform for employed 16-17 year-olds, and up to a 10% increase for employed 18-19 year-olds, depending on the specification adopted. Combined, wage, hours, and employment changes lead to significant increases in labour earnings and total income of teenagers relative to young adults. However, we also find evidence of a decline in educational enrolment, and an increase in unemployment, inactivity, and benefit receipt rates, suggesting that while the minimum wage reform increased the labour supply of teenagers, this increase was not matched by as large an increase in employment." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Minimum wages and employment: a review of evidence from the new minimum wage research (2007)

    Neumark, David ; Wascher, William;

    Zitatform

    Neumark, David & William Wascher (2007): Minimum wages and employment. A review of evidence from the new minimum wage research. (IZA discussion paper 2570), Bonn, 156 S.

    Abstract

    "We review the burgeoning literature on the employment effects of minimum wages - in the United States and other countries - that was spurred by the 'new minimum wage research' beginning in the early 1990's. The wide range of existing estimates makes it difficult for us to draw broad generalizations about the implications of the new minimum wage research. Clearly, no consensus now exists about the overall effects on low-skilled employment of an increase in the minimum wage. However, the oft-stated assertion that this recent research fails to support the traditional view that the minimum wage reduces the employment of low-skilled workers is clearly incorrect. The overwhelming majority of the studies surveyed in this paper give a relatively consistent (although not always statistically significant) indication of negative employment effects of minimum wages. In addition, among the papers we view as providing the most credible evidence, almost all point to negative employment effects. Moreover, the evidence tends to point to disemployment effects of minimum wages in the United States as well as many other countries. Two potentially more important conclusions emerge from our review. First, we see very few - if any - cases where a study provides convincing evidence of positive employment effects of minimum wages, especially from studies that focus on broader groups (rather than a narrow industry) for which the competitive model predicts disemployment effects. Second, when researchers focus on the least-skilled groups most likely to be adversely affected by minimum wages, we regard the evidence as relatively overwhelming that there are stronger disemployment effects for these groups." (Author's abstract, IAB-Doku) ((en))

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  • Literaturhinweis

    Working towards ill health? An investigation of psychological well-being in unemployed and employed low-wage earners (2004)

    Hassall, Emma J.; Muller, Juanita J.; Hassall, Stacey L.;

    Zitatform

    Hassall, Emma J., Juanita J. Muller & Stacey L. Hassall (2004): Working towards ill health? An investigation of psychological well-being in unemployed and employed low-wage earners. In: International Journal of Employment Studies, Jg. 12, H. 2, S. 73-101.

    Abstract

    "This study investigated the psychological well-being of 193 unemployed people and 206 employed low wage earners aged between eighteen and sixty-four years. Relationships between the latent and manifest benefits of employment, employment commitment, job satisfaction, life satisfaction, trait neuroticism, and psychological well-being were examined. Self-report questionnaire data was analysed using MANOVA, partial correlation and hierarchical multiple regression. Results showed that for the unemployed participants, the latent benefits of employment, life satisfaction, and job satisfaction were important predictors of psychological well-being. For the employed low wage earners, life satisfaction and financial strain were found to be important predictors of psychological well-being." (Author's abstract, IAB-Doku) ((en))

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