This paper investigates in what way employment for low-skilled workers is connected to the wage dispersion in a country by comparing Sweden to six European countries. Previous research on this topic used cross-section analysis, but this essay takes another approach by comparing the changes in the wage dispersion and employment and by breaking down the change in the wage dispersion into parts and studying the change in the wage for different percentiles. The paper finds that wages in Sweden have not converged, which likely contributed to the increase in the employment gap between people with high and low skills. Two countries with different development were Germany and Norway. In line with recent research, in Germany, wage inequality increased and the employment gap between people with high and low skills decreased. In comparison, the case of Norway has not received much attention among researchers. Wages converged more in Norway than in Germany, yet employment increased more in Germany. The paper suggests a potential explanation: wages for the bottom percentiles of the earnings distribution fell in Germany, which it did not in Norway.

In this study, I compare men and women with and without children to analyze the effect of children on wages and earnings. By comparing the gender wage gap to the family gap for men and women respectively, I find that there is still a persistent, yet rather small, family gap for women. The constant family gap for women supports the notion that a greater fraction of the gender wage gap can be explained by effects of having children now than previously. When using yearly earnings instead of hourly wages, the gender wage gap increases whereas the family gap for women decreases. This implies that although there are several policies with the aim of reducing gender wage differences and creating possibilities for women to combine work and family, there are still concrete effects that arise from taking the responsibility for children. Because the effect of having children is seemingly constant over time for women, the results from this study imply that specific policies are needed to prevent and battle the difference in labor market outcomes that arise because of the differing effects from caring for children.

Being the largest transition economy Russia has interested economists since the collapse of the USSR. This thesis contributes to the literature on Russian labour market. In the first chapter I investigate cyclicality of real wages in Russia, the second chapter looks into consequences of wage arrears for workers' future and the third chapter develops a model of wage arrears that arise as a result of firms' opportunistic behaviour. The principal source of data used in this thesis is the Russia Longitudinal Monitoring Survey (the RLMS). The first chapter investigates cyclicality of real wages in Russia. The analysis is carried out both at the country as well as regional levels and the influence of wage arrears on the cyclicality is examined. The estimated cyclicality coefficient is three to four times larger in magnitude than those observed for Germany, the UK, the USA and other developed countries. An increase in unemployment rate by one percentage point leads to an average reduction in real wages of four percent. The results are robust to changes in sample period and estimation technique. Wage arrears do not prove to be the driving force of this strong procyclicality. The second chapter investigates influence of wage arrears on the future of affected workers. Limited dependent variable models are used to analyse the effects of wage arrears on the probability of future wage arrears and frequent separation from employers. Difference-in-difference approach is used to analyse effects on earnings. The results suggest that affected workers are twice as likely to experience wage arrears again within next three years. Job-movers are able to decrease the probability of repeated wage arrears by nine percentage points. The effect on separations is more modest: affected workers are approximately forty percent more likely to change jobs the following year and eleven percent more likely to experience frequent separations within five years after wage arrears. The effect on future earnings is relatively small and short-lived. Take-home wages decrease by 1 000 RUB compared to unaffected workers and recover within the following year. Analysis of stocks and flows of wage arrears indicates that in the period from 1998 to 2012 on average three quarters of wage debts were repaid. The third chapter picks up the discussion of the nature of wage arrears in Russia. An indirect evidence suggests that sometimes the firms choose to withhold wages despite having the resources to pay and in certain circumstances the employees accept it. The chapter presents a model of wage arrears that is based on worker-firm interactions. Calibration to the Russian data indicates that the parameter values observed in the RLMS dataset are consistent with a stable equilibrium in which an approximately half of the labour force experience late payments. The model predicts average duration of wage arrears of four months. This prediction is consistent with the Russian reality in the late 1990s.

Lee Chung-man. / Thesis (M.Phil.)--Chinese University of Hong Kong, 2004. / Includes bibliographical references (leaves 58-61). / Abstracts in English and Chinese. / Abstract --- p.i / Acknowledgement --- p.iv / Table of Contents --- p.v / List of Tables --- p.vii / Chapter Chapter 1. --- Introduction --- p.1 / Chapter Chapter 2. --- Literature Review --- p.6 / Chapter 2.1 --- Empirical Findings on Gender Wage Differentials --- p.6 / Chapter 2.2 --- The Determinants of the Earnings Equation --- p.8 / Chapter 2.3 --- Decomposition of Gender Wage Differentials --- p.12 / Chapter Chapter 3. --- Data Description --- p.17 / Chapter Chapter 4. --- The Gender Earnings Gap in Hong Kong --- p.22 / Chapter 4.1 --- The Overall Gender Earnings Gap in Hong Kong --- p.22 / Chapter 4.2 --- The Gender Earnings Gap by Age Cohorts --- p.23 / Chapter 4.3 --- The Gender Earnings Gap by Education Levels --- p.24 / Chapter 4.4 --- The Gender Earnings Gap in Different Occupations --- p.26 / Chapter Chapter 5. --- The Earnings Equation and Return to Education in Hong Kong --- p.28 / Chapter 5.1 --- Determinants of Monthly Earnings --- p.28 / Chapter 5.2 --- The Overall Regression Pattern of the Earnings Equation --- p.29 / Chapter 5.3 --- Return to Education by Age Cohorts --- p.31 / Chapter 5.4 --- Return to Education in Different Education Levels --- p.32 / Chapter 5.5 --- Return to Education in Different Occupations --- p.33 / Chapter Chapter 6. --- Decomposition of the Gender Wage Differential --- p.36 / Chapter 6.1 --- Results from the Blinder-Oaxaca Male Weighted Decomposition --- p.38 / Chapter 6.2 --- Results from the Blinder-Oaxaca Female Weighted Decomposition --- p.40 / Chapter 6.3 --- Results from other Decomposition Approaches --- p.41 / Chapter 6.4 --- Decomposition Results by Groups --- p.43 / Chapter 6.5 --- Comparison for the Decomposition Approaches --- p.52 / Chapter Chapter 7 --- Conclusion --- p.55 / Bibliography --- p.58 / Appendix --- p.62 / Tables --- p.68

Universidade Federal do Cearà / Este artigo analisa a discriminaÃÃo salarial por raÃa e gÃnero nas distribuiÃÃes de salÃrio segundo os setores de atividade, comparando as regiÃes Nordeste e Sudeste do Brasil. Para este objetivo, utilizou-se os dados da Pnad 2002 e aplicou-se uma metodologia semi paramÃtrica - estimador kernel e outra paramÃtrica â regressÃo quantÃlica. Na primeira, realizaram-se simulaÃÃes contrafactuais, para verificar como seria a distribuiÃÃo de salÃrios dos trabalhadores negros (mulheres) caso eles tivessem a mesma escolaridade dos trabalhadores brancos (homens). Essas simulaÃÃes mostram que existe discriminaÃÃo contra mulheres e negros no mercado de trabalho em ambas as regiÃes. O mÃtodo kernel mostrou em uma representaÃÃo visualmente clara que a discriminaÃÃo contra a raÃa negra à maior no Sudeste para todos os setores de atividade, enquanto que nÃo se conseguiu identificar em qual regiÃo a discriminaÃÃo contra mulheres à maior, visto que ela depende do setor considerado. Em relaÃÃo à regressÃo quantÃlica, os resultados mostraram que a discriminaÃÃo salarial cresce para salÃrios maiores. / This paper analyses the discrimination of wages by race and gender in the wage distributions according to sectors of occupation, comparing the Northeast and Southeast regions of the Brazil. For this aim, we use data from Pnad 2002 and apply a semi-parametric method - kernel estimator and another parametric â quantile regression. In the first, we make counterfactual exercises, to examine how going to be the wage distribution of the black(women) workers if they had the same schooling than the white (men) workers. The results verify that exist discrimination against women and black workers in labor market of both regions. The kernel method provided a visually clear representation that discrimination against black workers is greater in the Southeast for all sectors, while it can not identify where discrimination against women is greater because it depend on the sector. The quantile regression showed that discrimination increases for higher wages.

This thesis explores how and why gender wage inequality persisted in Australia during the period 1990 to 2003. A review of the wage data indicated that Australian inequality persisted during this period and even increased in Western Australia. An analysis of the literature and published tribunal decisions showed that the focus of action relating to gender wage equality was on the formal industrial relations system, through legislation and tribunal decisions. As the literature also indicated that these measures had failed to assist many female-dominated occupations, it was felt useful to examine the views of key stakeholders in the formal industrial relations system. Given the mainly quantitative and aggregate data analysis of previous empirical literature and the theoretical literature’s growing focus on less quantifiable social factors, it was felt that qualitative research would add to the analysis of gender wage determination. This thesis uses in-depth interviews with stakeholders in the federal and Western Australian industrial relations systems to examine the period 1990 to 2003. Their perceptions and observations are triangulated with published wage data from selected occupations. / Interviewees felt that the persistence of gender wage inequality was a complex artifact. An artifact of economic, industrial relations, social and cultural factors, combined with the biological and psychological attributes of all involved in decisions before and in the workplace. While much of the gender wage gap literature has been focused on the economic, industrial relations, or legal aspects of wage inequality, this thesis uniquely demonstrates why and how social and cultural influences also act to create persistent gender wage inequality. As much as action is taken in the legal and political arena to create equality, the players in the industrial relations system, consciously or not, both male and female, say that they have helped to (re)construct the gender wage gap. The implications are that in order to achieve gender wage equality, action cannot be left only to legislation and activity in the courts, but is also needed at the social and cultural level. Such action could be taken within the enterprise as well as in the school, community and home.

<p>Study I<i>Real Wage Determination in the Swedish Engineering Industry</i></p><p>This study uses the monopoly union model to examine the determination of real wages and in particular the effects of active labour market programmes (ALMPs) on real wages in the engineering industry. Quarterly data for the period 1970:1 to 1996:4 are used in a cointegration framework, utilising the Johansen's maximum likelihood procedure. On a basis of the Johansen (trace) test results, vector error correction (VEC) models are created in order to model the determination of real wages in the engineering industry. The estimation results support the presence of a long-run wage-raising effect to rises in the labour productivity, in the tax wedge, in the alternative real consumer wage and in real UI benefits. The estimation results also support the presence of a long-run wage-raising effect due to positive changes in the participation rates regarding ALMPs, relief jobs and labour market training. This could be interpreted as meaning that the possibility of being a participant in an ALMP increases the utility for workers of not being employed in the industry, which in turn could increase real wages in the industry in the long run. Finally, the estimation results show evidence of a long-run wage-reducing effect due to positive changes in the unemployment rate.</p><p>Study II<i>Intersectoral Wage Linkages in Sweden</i></p><p>The purpose of this study is to investigate whether the wage-setting in certain sectors of the Swedish economy affects the wage-setting in other sectors. The theoretical background is the Scandinavian model of inflation, which states that the wage-setting in the sectors exposed to international competition affects the wage-setting in the sheltered sectors of the economy. The Johansen maximum likelihood cointegration approach is applied to quarterly data on Swedish sector wages for the period 1980:1–2002:2. Different vector error correction (VEC) models are created, based on assumptions as to which sectors are exposed to international competition and which are not. The adaptability of wages between sectors is then tested by imposing restrictions on the estimated VEC models. Finally, Granger causality tests are performed in the different restricted/unrestricted VEC models to test for sector wage leadership. The empirical results indicate considerable adaptability in wages as between manufacturing, construction, the wholesale and retail trade, the central government sector and the municipalities and county councils sector. This is consistent with the assumptions of the Scandinavian model. Further, the empirical results indicate a low level of adaptability in wages as between the financial sector and manufacturing, and between the financial sector and the two public sectors. The Granger causality tests provide strong evidence for the presence of intersectoral wage causality, but no evidence of a wage-leading role in line with the assumptions of the Scandinavian model for any of the sectors. </p><p>Study III<i>Wage and Price Determination in the Private Sector in Sweden</i></p><p>The purpose of this study is to analyse wage and price determination in the private sector in Sweden during the period 1980–2003. The theoretical background is a variant of the “Imperfect competition model of inflation”, which assumes imperfect competition in the labour and product markets. According to the model wages and prices are determined as a result of a “battle of mark-ups” between trade unions and firms. The Johansen maximum likelihood cointegration approach is applied to quarterly Swedish data on consumer prices, import prices, private-sector nominal wages, private-sector labour productivity and the total unemployment rate for the period 1980:1–2003:3. The chosen cointegration rank of the estimated vector error correction (VEC) model is two. Thus, two cointegration relations are assumed: one for private-sector nominal wage determination and one for consumer price determination. </p><p>The estimation results indicate that an increase of consumer prices by one per cent lifts private-sector nominal wages by 0.8 per cent. Furthermore, an increase of private-sector nominal wages by one per cent increases consumer prices by one per cent. An increase of one percentage point in the total unemployment rate reduces private-sector nominal wages by about 4.5 per cent. The long-run effects of private-sector labour productivity and import prices on consumer prices are about –1.2 and 0.3 per cent, respectively. The Rehnberg agreement during 1991–92 and the monetary policy shift in 1993 affected the determination of private-sector nominal wages, private-sector labour productivity, import prices and the total unemployment rate. The “offensive” devaluation of the Swedish krona by 16 per cent in 1982:4, and the start of a floating Swedish krona and the substantial depreciation of the krona at this time affected the determination of import prices.</p>

<p>Using mainly quantile regressions, this paper evaluates the gender wage gap throughout the conditional wage distribution in Sweden. The gender wage is found to increase at the upper tail of the wage distribution, indicating an enforcement of the glass ceiling effect recorded in earlier studies.</p><p>The results also indicate that the earlier noted trend of diminishing wage differences at the bottom of the wage distribution now is turning. The increase of overall wage inequalities coincides with a general increase in wage dispersion among high-income and low-income individuals. It is also noted that there are substantial differences in returns to productivity characteristics between the public and the private sectors, and that both the highest and the lowest unexplained gender wage gap is found in the public sector.</p>

Study IReal Wage Determination in the Swedish Engineering Industry This study uses the monopoly union model to examine the determination of real wages and in particular the effects of active labour market programmes (ALMPs) on real wages in the engineering industry. Quarterly data for the period 1970:1 to 1996:4 are used in a cointegration framework, utilising the Johansen's maximum likelihood procedure. On a basis of the Johansen (trace) test results, vector error correction (VEC) models are created in order to model the determination of real wages in the engineering industry. The estimation results support the presence of a long-run wage-raising effect to rises in the labour productivity, in the tax wedge, in the alternative real consumer wage and in real UI benefits. The estimation results also support the presence of a long-run wage-raising effect due to positive changes in the participation rates regarding ALMPs, relief jobs and labour market training. This could be interpreted as meaning that the possibility of being a participant in an ALMP increases the utility for workers of not being employed in the industry, which in turn could increase real wages in the industry in the long run. Finally, the estimation results show evidence of a long-run wage-reducing effect due to positive changes in the unemployment rate. Study IIIntersectoral Wage Linkages in Sweden The purpose of this study is to investigate whether the wage-setting in certain sectors of the Swedish economy affects the wage-setting in other sectors. The theoretical background is the Scandinavian model of inflation, which states that the wage-setting in the sectors exposed to international competition affects the wage-setting in the sheltered sectors of the economy. The Johansen maximum likelihood cointegration approach is applied to quarterly data on Swedish sector wages for the period 1980:1–2002:2. Different vector error correction (VEC) models are created, based on assumptions as to which sectors are exposed to international competition and which are not. The adaptability of wages between sectors is then tested by imposing restrictions on the estimated VEC models. Finally, Granger causality tests are performed in the different restricted/unrestricted VEC models to test for sector wage leadership. The empirical results indicate considerable adaptability in wages as between manufacturing, construction, the wholesale and retail trade, the central government sector and the municipalities and county councils sector. This is consistent with the assumptions of the Scandinavian model. Further, the empirical results indicate a low level of adaptability in wages as between the financial sector and manufacturing, and between the financial sector and the two public sectors. The Granger causality tests provide strong evidence for the presence of intersectoral wage causality, but no evidence of a wage-leading role in line with the assumptions of the Scandinavian model for any of the sectors. Study IIIWage and Price Determination in the Private Sector in Sweden The purpose of this study is to analyse wage and price determination in the private sector in Sweden during the period 1980–2003. The theoretical background is a variant of the “Imperfect competition model of inflation”, which assumes imperfect competition in the labour and product markets. According to the model wages and prices are determined as a result of a “battle of mark-ups” between trade unions and firms. The Johansen maximum likelihood cointegration approach is applied to quarterly Swedish data on consumer prices, import prices, private-sector nominal wages, private-sector labour productivity and the total unemployment rate for the period 1980:1–2003:3. The chosen cointegration rank of the estimated vector error correction (VEC) model is two. Thus, two cointegration relations are assumed: one for private-sector nominal wage determination and one for consumer price determination. The estimation results indicate that an increase of consumer prices by one per cent lifts private-sector nominal wages by 0.8 per cent. Furthermore, an increase of private-sector nominal wages by one per cent increases consumer prices by one per cent. An increase of one percentage point in the total unemployment rate reduces private-sector nominal wages by about 4.5 per cent. The long-run effects of private-sector labour productivity and import prices on consumer prices are about –1.2 and 0.3 per cent, respectively. The Rehnberg agreement during 1991–92 and the monetary policy shift in 1993 affected the determination of private-sector nominal wages, private-sector labour productivity, import prices and the total unemployment rate. The “offensive” devaluation of the Swedish krona by 16 per cent in 1982:4, and the start of a floating Swedish krona and the substantial depreciation of the krona at this time affected the determination of import prices.

Using mainly quantile regressions, this paper evaluates the gender wage gap throughout the conditional wage distribution in Sweden. The gender wage is found to increase at the upper tail of the wage distribution, indicating an enforcement of the glass ceiling effect recorded in earlier studies. The results also indicate that the earlier noted trend of diminishing wage differences at the bottom of the wage distribution now is turning. The increase of overall wage inequalities coincides with a general increase in wage dispersion among high-income and low-income individuals. It is also noted that there are substantial differences in returns to productivity characteristics between the public and the private sectors, and that both the highest and the lowest unexplained gender wage gap is found in the public sector.