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Pedersen, Siri Hansen & Georg Picot (2023): Regulating low wages: cross-national policy variation and outcomes. In: Socio-economic review, Jg. 21, H. 4, S. 2093-2116. DOI:10.1093/ser/mwad019

Abstract

"This article provides a comparative analysis of three central policies to regulate low wages: statutory minimum wages, state support for collective bargaining and topping up low wages with public transfers (in-work benefits). We map the variation of these policies across 33 OECD countries and analyze the incidence of low-wage employment they are associated with. We find three approaches to regulating low wages. In the first, 'wage scale protection', states put most emphasis on supporting collective bargaining. In the second, 'bare minimum', there is not much else than the statutory minimum wage. In the third, 'state pay', the statutory minimum wage is supplemented by sizeable public financial support for low earners. When analyzing policy outcomes, 'wage scale protection' is associated with least low-wage employment. For 'bare minimum', much depends on the level of the statutory minimum wage. Although 'state pay' props up workers' disposable income, many workers receive low gross pay." (Author's abstract, IAB-Doku) ((en))

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Schnabel, Claus (2021): Low-wage employment. Are low-paid jobs stepping stones to higher-paid jobs, do they become persistent, or do they lead to recurring unemployment? (IZA world of labor 276), Bonn, 10 S. DOI:10.15185/izawol.276.v2

Abstract

"Ungeachtet geringer Aufwärtsmobilität können Niedriglohnjobs für manche Arbeitnehmergruppen ein Sprungbrett zu besser bezahlten Arbeitsplätzen bilden. Dieser Befund kann „Work first“-Strategien wohlfahrtsstaatlicher Reformen unterstützen. Allerdings ist Niedriglohnbeschäftigung kein selbstkorrigierendes System, sondern kann Narben hinterlassen. Um Aufstiegschancen zu vergrößern, ist ein ganzheitlicher Politikansatz notwendig: er sollte Strategien der aktiven Arbeitsmarktpolitik ebenso umfassen wie eine Philosophie des lebenslangen Lernens und die Unterstützung von Unternehmen, die stärker in die Qualifizierung ihrer Beschäftigten investieren und ihnen bessere Perspektiven außerhalb des Niedriglohnsegments verschaffen." (Autorenreferat, IAB-Doku)

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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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Escudero, Verónica (2015): Are active labour market policies effective in activating and integrating low-skilled individuals? An international comparison. (PSE working paper / Paris School of Economics 2015-01), Paris, 45 S.

Abstract

"This paper examines the effectiveness of active labour market policies (ALMPs) in improving labour market outcomes, especially of low-skilled individuals. The empirical analysis consists of an aggregate impact approach based on a pooled cross country and time series database for 31 advanced countries during the period 1985 - 2010. A novelty of the paper is that it includes aspects of the delivery system to see how the performance of ALMPs is affected by different implementation characteristics. Among the notable results, the paper finds that ALMPs matter at the aggregate level, both, in terms of reducing unemployment, but also in terms of increasing employment and participation. Interestingly, start-up incentives are more effective in reducing unemployment than other ALMPs. The positive effects seem to be particularly beneficial for the low-skilled. In terms of implementation, the paper finds that the most favourable aspect is the allocation of resources to programme administration. Finally, a disruption of policy continuity is associated with negative effects for all labour market variables analysed." (Author's abstract, IAB-Doku) ((en))

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Windisch, Hendrickje Catriona (2015): Adults with low literacy and numeracy skills. A literature review on policy intervention. (OECD education working papers 123), Paris, 125 S. DOI:10.1787/5jrxnjdd3r5k-en

Abstract

"Identifying effective policy interventions for adults with low literacy and numeracy skills has become increasingly important. The PIAAC Survey of Adult Skills has revealed that a considerable number of adults in OECD countries possess only limited literacy and numeracy skills, and governments now recognise the need to up-skill low-skilled adults in order to maintain national prosperity, especially in the context of structural changes and projected population ageing. Against this background, this literature review examines the current evidence on policy interventions for adults with low literacy and numeracy skills to clarify which targeted policy levers could best enhance socio-economic returns. Despite progress in measuring adult skills and extensive literature describing practices used in adult literacy and numeracy programmes, there is little analysis of the effects of different interventions on learners. This literature review therefore attempts to bring together the analytical insights from research and practice to provide a broad picture of what has so far proven to motivate low-skilled adults to join and persist in literacy and numeracy learning. The paper shows that low basic skills levels of adults are a complex policy problem that has neither straightforward causes nor straightforward solutions and successful interventions are relatively uncommon. Tackling serious literacy and numeracy weaknesses is challenging because the group of low-skilled adults is diverse and requires different, well-targeted interventions. But there is now an emerging body of evidence on the approaches to teaching and learning that can make life-changing differences to adults in need. The paper identifies formative assessment, e-learning, and contextualisation and embedding (especially in the workplace and family context) as effective approaches to basic skills teaching. The central challenge is to put the evidence to work." (Author's abstract, IAB-Doku) ((en))

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Saint-Martin, Anne, Mark Keese, Alexander Hijzen, Hande Inanc, Sandrine Cazes, Stijn Broecke, Glenda Quintini, Paolo Falco, Andrea Bassanini & Balint Menyhert Saint-Martin, Anne, Mark Keese, Alexander Hijzen, Hande Inanc, Sandrine Cazes, Stijn Broecke, Glenda Quintini, Paolo Falco, Andrea Bassanini & Balint Menyhert (sonst. bet. Pers.) (2014): OECD employment outlook 2014. (OECD employment outlook), Paris, 289 S. DOI:10.1787/empl_outlook-2014-en

Abstract

"The 2014 edition of the OECD Employment Outlook provides an in-depth review of recent labour market trends and short-term prospects in OECD countries. It zooms in on how the crisis has affected earnings, showing that the low paid have not been spared from a substantial slowdown in real wage growth. While more subdued earnings growth can help to restore competitiveness and employment growth, which is essential to drive down unemployment, the quality of the jobs being created also matters. The complexity of job quality can be captured through three dimensions: earnings; labour market security; and quality of the work environment. There are large differences across countries in each of these dimensions, but there is no need to trade off job quality for quantity: some countries manage to do well on both counts. Non-regular employment can have an adverse impact on job quality, especially in terms of employment security and the difficulties of moving to a job with a permanent contract. Reform to employment protection legislation is necessary in some countries to reduce high levels of non-regular jobs. Skills are a key determinant of a person's chances of working in a highquality job, as new results from the OECD's international Survey of Adult Skills show. This depends not just on the skills workers already have, but also on how these skills are used in the workplace, which in turn reflects countries' labour market institutions and policies.

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Boeri, Tito (2012): Setting the minimum wage. In: Labour economics, Jg. 19, H. 3, S. 281-290. DOI:10.1016/j.labeco.2012.01.001

Abstract

"The process leading to the setting of the minimum wage so far has been overlooked by economists. There are two common ways of setting national minimum wages: they are either government legislated or the byproduct of collective bargaining agreements, which are extended erga omnes to all workers. We develop a simple model relating the level of the minimum wage to the setting regime. Next, we exploit a new data set on minimum wages in 68 countries having a statutory national minimum level of pay in the period 1981-2005. We find that a Government legislated minimum wage is lower than a wage floor set within collective agreements. This effect survives to several robustness checks and can be interpreted as a causal effect of the setting regime on the level of the minimum wage." (Author's abstract, IAB-Doku) ((en))

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Dolton, Peter & Chiara Rosazza-Bondibene (2012): The international experience of minimum wages in an economic downturn. In: Economic policy, Jg. 27, H. 69, S. 99-142. DOI:10.1111/j.1468-0327.2011.00278.x

Abstract

"What should governments do with the level of the minimum wage (MW) in times of recession? In an economic downturn when most workers face falling real wages is it appropriate to let the MW fall or are the positive effects of the MW on inequality enough to justify its uprating - and if so what might be the consequences on a country's employment level? This paper reports new estimates of the employment effects of the MW by focusing on the recessionary experiences across countries. Using international data we exploit: cross-national variation in the level and timing of the MW uprating and the exact timing of the recessionary experiences in different countries with a panel data set comprising 33 OECD over the period 1971 - 2009. Our panel data allow us to differentiate the effect of MWs on employment in periods of economic downturn as well as periods of economic growth. We also account for institutional and other policy related differences that might have an impact on employment other than the MW. We find that the answer depends on whether one considers adults or young people, and to some extent, on what measure of the MW is considered. The answer is also somewhat sensitive to whether one considers that the MW level is a choice option of the government which is inextricably interrelated to the determination of employment - that is, the extent to which the MW is endogenous. Using a 'political complexion of the government' instrumental variable (IV) we find that the MW only has a negative impact on youth employment. This leaves each government with the dilemma of raising the MW and reducing inequality or increasing the MW and accepting that this will reduce employment levels amongst young people and those on the margins of work." (Author's abstract, IAB-Doku) ((en))

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Handel, Michael J. (2012): Trends in job skill demands in OECD countries. (OECD social, employment and migration working papers 143), Paris, 119 S. DOI:10.1787/5k8zk8pcq6td-en

Abstract

"This report examines skill trends in 24 OECD countries over the past several decades. The skill measures used include broad occupation groups, country-specific direct measures of skill requirements from international surveys, and direct skill measures from the Occupational Information Network (O*NET) database applied to both United States and European labour force surveys. Each kind of data has its own strengths and limitations but they tell a consistent story." (Author's abstract, IAB-Doku) ((en))

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Schmitt, John (2012): Low-wage lessons. Washington, DC, 13 S.

Abstract

"Over the last two decades, high - and, in some countries, rising - rates of low-wage work have emerged as a major political concern. According to the Organization for Economic Cooperation and Development (OECD), in 2009, about one-fourth of U.S. workers were in low-wage jobs, defined as earning less than two-thirds of the national median hourly wage. About one-fifth of workers in the United Kingdom, Canada, Ireland, and Germany were receiving low wages by the same definition. In all but a handful of the rich OECD countries, more than 10 percent of the workforce was in a low-wage job.
If low-wage jobs act as a stepping stone to higher-paying work, then even a relatively high share of low-wage work may not be a serious social problem. If, however, as appears to be the case in much of the wealthy world, low-wage work is a persistent and recurring state for many workers, then low-wages may contribute to broader income and wealth inequality and constitute a threat to social cohesion. This report draws five lessons on low-wage work from the recent experiences of the United States and other rich economies in the OECD." (Author's abstract, IAB-Doku) ((en))

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Deutscher Gewerkschaftsbund. Abteilung Arbeitsmarktpolitik (2012): Vollzeitbeschäftigte mit Niedriglohn. (Arbeitsmarkt aktuell 2012,06), Berlin, 14 S.

Abstract

"Fast ein Viertel der Vollzeitbeschäftigten in Deutschland liegt mit dem Einkommen unter der offiziellen Niedriglohnschwelle von 1800 Euro. In nur zehn Jahren stieg der Anteil der Niedriglöhner von 19 auf 23 Prozent, die Kluft zwischen hohen und niedrigen Einkommen in Deutschland wächst.
Die (noch) positive Entwicklung auf dem Arbeitsmarkt wird von einer wachsenden Ungleichheit bei den Einkommen überschattet. Die Kluft zwischen hohen und niedrigen Einkommen wird immer größer. Mini-Jobs und Leiharbeit, Tarifflucht und Hartz-Gesetze haben zu steigenden Lohnunterschieden geführt. Erst jüngst hat das Statistische Bundesamt darauf hingewiesen, dass 2010 rd. die Hälfte der atypisch Beschäftigten zu den Niedriglohnbeziehern zählen. Abweichend von der Herangehensweise soll hier die Niedriglohnbeschäftigung von Vollzeitbeschäftigten analysiert werden. Dabei zeigt sich auch hier der längerfristige Trend eines Aufstiegs. Auch bei Vollzeitbeschäftigten sind Niedriglöhne auf dem Vormarsch und ist die Lohnungleichheit deutlich gestiegen." (Autorenreferat, IAB-Doku)

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Léné, Alexandre (2011): Occupational downgrading and bumping down: The combined effects of education and experience. In: Labour economics, Jg. 18, H. 2, S. 257-269. DOI:10.1016/j.labeco.2010.11.007

Abstract

"Job competition between workers has important implications for 'downgrading' and 'bumping down'. To account for these phenomena, a matching model is considered in which highly educated and poorly educated workers compete for skilled jobs. An exogenous increase in the proportion of highly skilled workers increases the proportion of these workers in low-level jobs (downgrading). Another of the paper's findings is that changes in the composition of the workforce affect workers' opportunities to accumulate experience. An increase in the relative supply of highly educated workers reduces the opportunities for poorly educated workers to learn on the job. Both education and experience are required in order to access skilled jobs." (Author's abstract, IAB-Doku) ((en))

Abstract

In den meisten OECD-Ländern hat die Einkommensungleichheit in den letzten Jahren zugenommen; Ausnahmen sind nur wenige Länder wie Chile, Mexiko oder die Türkei. Seit den 1980er Jahren hat sich in Ländern, die bisher bereits eine hohe Einkommensungleichheit aufwiesen (z.B. USA und Israel) die Einkommenslücke nochmals deutlich erweitert. Allerdings sind auch Länder mit traditionell geringer Einkommensungleichheit wie Dänemark, Schweden und Deutschland nicht länger vor wachsender Einkommensungleichheit bewahrt geblieben. Die Ungleichheit hat in diesen Ländern sogar am stärksten zugenommen. Zu den wichtigsten Gründen der wachsenden Einkommensungleichheit rechnet die OECD vor allem die nachlassende Wirkung steuer- und sozialpolitischer Mittel. In einigen Ländern nahm im letzten Jahrzehnt die redistributive Wirkung von Steuern und Sozialausgaben sogar ab. Auch durch Eheschließung zwischen Personen mit hohen und niedrigen Einkommen werden Einkommensungleichheiten nicht eingeebnet. Hier wird der gegenteilige Trend beobachtet, nämlich dass jeweils eher Personen im selben Berufs- und Einkommensbereich Familien gründen. Als Maßnahmen zum Abbau der Einkommensungleichheiten werden Reformen der Umverteilungspolitik empfohlen, Maßnahmen zur beruflichen Integration, Abbau des hohen Anteils der Niedriglohnbeschäftigung und der atypischer Beschäftigung sowie die Erhöhung der Bildungsbeteiligung. (IAB)

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Addison, John T. & Orgul Demet Ozturk (2010): Minimum wages, labor market institutions, and female employment and unemployment. A cross-country analysis. (IZA discussion paper 5162), Bonn, 32 S.

Abstract

"This paper estimates the effect of minimum wage regulation in 16 OECD countries, 1970-2008. Our treatment is motivated by Neumark and Wascher's (2004) seminal cross-country study using panel methods to estimate minimum wage effects among teenagers and young adults. Apart from the longer time interval examined here, a major departure of the present study is the focus on prime-age females, a group typically neglected in the component minimum wage literature. Another is our deployment of time-varying policy and institutional regressors. Yet another is our examination of unemployment and participation outcomes in addition to employment effects. We report strong evidence of adverse employment effects among adult females and lower participation, even if the unemployment effects are muted. Although we report some similar findings to Neumark and Wascher as to the role of labor market institutions and policies, we do not observe the same patterns in the institutional data; in particular, we can reject for our target group their finding of stronger disemployment effects in countries with the least regulated markets." (Author's abstract, IAB-Doku) ((en))

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Jütting, Johannes, Angela Luci & Christian Morrison (2010): Why do so many women end up in bad jobs? A cross-country assessment. (OECD Development Centre working papers 287), Paris, 50 S. DOI:10.1787/5kmlhlrz6br0-en

Abstract

"There is an increasing concern in the development community about the increase in the 'feminisation of bad jobs' of many developing countries. Indeed, recent analysis shows a growing proportion of women are in jobs with poor working conditions and low pay. But what is driving this phenomenon? This paper addresses this issue by looking at the role of social institutions, i.e. traditions, social norms and informal laws, in shaping labour market outcomes. By applying the newly established Social Institutions and Gender Index (SIGI) of the OECD on 44 developing countries, the paper finds that social institutions influence to a great extent activity patterns and job quality for women. Our results suggest that addressing discriminating social institutions is crucial for advancing gender equality." (Author's abstract, IAB-Doku) ((en))

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Melnik, Ekaterina, Martine Möbus, Noemie Olympio & Remi Trehin-Lalanne (2010): Les eleves sans qualification. La France et les pays de l'OCDE. Rapport pour le Haut Conseil de l'Education. Paris, 169 S.

Abstract

"Cette synthèse comparative et européenne fait le point sur les élèves qui sortent du système scolaire sans qualification en France, en Allemagne et au Royaume-Uni. Les auteurs analysent le contenu et la portée du 'benckmark' européen concernant les jeunes sortis précocement du système puis exposent pour les trois pays en question les caractéristiques des jeunes sans qualification et leur devenir sur le marché du travail. Enfin sont examinés les dispositifs d'action publique qui s'efforcent de remédier aux difficultés rencontrées par ces jeunes." (Resume d'auteur, IAB-Doku) ((fr))

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Oesch, Daniel (2010): What explains high unemployment among low-skilled workers? Evidence from 21 OECD countries. In: European journal of industrial relations, Jg. 16, H. 1, S. 39-55. DOI:10.1177/0959680109355307

Abstract

"In OECD countries, unemployment disproportionately affects low-skilled workers. This article examines four explanations: wage-setting institutions, employment regulation, globalization and monetary policy. The analysis is based on pooled regressions for 21 affluent countries over the period 1991 -- 2006. We find no support for the argument that low-skilled workers' employment prospects are hindered by legal minimum wages or strict employment protection, nor that wage inequality improves low-skilled employment. By contrast, investment in active labour market policies pays off and low real interest rates are associated with significantly less low-skilled unemployment. Hence, low-skilled workers' job prospects seem enhanced by a combination of active labour market programmes with monetary policy that fully exploits the economy's growth potential." (Author's abstract, IAB-Doku) ((en))

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Immervoll, Herwig & Mark Pearson (2009): A good time for making work pay? Taking stock of in-work benefits and related measures across the OECD. (OECD social, employment and migration working papers 81), Paris, 59 S. DOI:10.1787/225442803245

Abstract

"The twin problem of in-work poverty and persistent labour market difficulties of low-skilled individuals has been one of the most important drivers of tax-benefit policy reforms in OECD countries in recent years. Employment-conditional cash transfers to individuals facing particular labour-market challenges have been a core element of 'make-work-pay' policies for some time and are now in use in more than half of the OECD countries. They are attractive because they redistribute to low-income groups while also creating additional work incentives. But like all social benefits, they have to be financed, which creates additional economic costs for some. This paper discusses the rationale for in-work benefits (IWB), summarises the main design features of programmes operated in OECD countries, and provides an update of what is known about their effectiveness in terms of reducing inequalities and creating employment. As policies aiming to promote self-sufficiency, wage subsidies and minimum wages share a number of the objectives associated with IWB measures. We review evidence on the effectiveness of minimum wages and wage subsidies and discuss links between these policies and IWBs. Finally, we outline some potential consequences of weakening labour markets for the effectiveness of make-work-pay policies." (Author's abstract, IAB-Doku) ((en))

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Immervoll, Herwig (2009): Minimum-income benefits in OECD countries. Policy design, effectiveness and challenges. (IZA discussion paper 4627), Bonn, 52 S.

Abstract

"Almost all OECD countries operate comprehensive minimum-income programmes for working-age individuals, either as last-resort safety nets alongside primary income replacement benefits, or as the principal instrument for delivering social protection. Such safety-net benefits aim primarily at providing an acceptable standard of living for families unable to earn sufficient incomes from other sources. This paper provides an overview of social assistance and other minimum-income programmes in OECD countries, summarises their main features, and highlights a number of current policy challenges." (Author's abstract, IAB-Doku) ((en))

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Jacques, Jean-Francois & Emmanuelle Walkowiak (2009): Low wages and high unemployment rates: The role of social interactions in hiring discrimination. In: The Journal of Socio-Economics, Jg. 38, H. 3, S. 456-463. DOI:10.1016/j.socec.2008.12.008

Abstract

"The purpose of this paper is to explain why low-wage workers with identical qualifications to higher-wage workers are more exposed to unemployment. Each worker is considered to belong to a social group (defined according to his/her gender, age, and nationality). We assume that workers experience both productive interdependencies and social interactions within the firm. Also inter- and intra-group interactions determine worker productivity, and frictions on the labor market limit the hiring of the most productive workers. Consequently, externalities acting both within the firm and in the labor market can lead to a higher rate of unemployment for low-wage workers." (Author's abstract, IAB-Doku) ((en))