Wage mobility: do institutions make a difference?

Cardoso, Ana Rute

doi:10.1016/j.labeco.2004.10.004

Cited by 39 publications

(40 citation statements)

References 20 publications

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“…Thematic task forces, composed by the social partners, analysed relevant issues from a technical point of view before their final assessment. This process eventually led to a series of pacts surrounding collective bargaining, health and safety and vocational training and frequent government interventions, particularly in terms of minimum wages and guidelines for wage increases (Cardoso, 2006), but the state remained ineffective in enforcing emerging labour standards in the large informal sector.…”

Section: Institutions Work and Employment In Portugalmentioning

confidence: 99%

Institutional legacies and HRM: similarities and differences in HRM practices in Portugal and Mozambique

Dibben

Brewster

Brookes

et al. 2016

The International Journal of Human Resource Management

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Section: Institutions Work and Employment In Portugalmentioning

confidence: 99%

Institutional legacies and HRM: similarities and differences in HRM practices in Portugal and Mozambique

Dibben

Brewster

Brookes

et al. 2016

The International Journal of Human Resource Management

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“…In order to shed more light on which part of the wage distribution was particularly prone to wage immobility, Table A2 in the Appendix displays the percentage of quintile stayers for each quintile separately for male and female workers for the years 1993 and 2008. The table shows the typical result, as documented, e.g., by Dickens (2000) or Cardoso (2006), that individuals at the top and at the bottom of the wage distribution face less wage mobility than those individuals in the middle of the wage distribution. Moreover, it can be observed that these middle quintiles experienced a more pronounced decrease in wage mobility over time compared to the individuals at the top or the bottom of the wage distribution, especially in East Germany.…”

Section: Development Of Wage Mobility 321 Short-term Mobility Patternsmentioning

confidence: 80%

Gender Differences in German Wage Mobility

Aretz

2013

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Der lange Beobachtungszeitraum der Daten ermöglicht für Westdeutschland auch Aussagenüber die Entwicklung der langfristigen Lohnmobilität und damitüber die langfristigen Aufstiegschancen in der Lohnverteilungüber einen Zeitraum von bis zu 24 Jahren. Es zeigt sich, dass Männer -ähnlich wie in der kurzen Frist -eine deutlich höhere Aufstiegsmobilität als Frauen aufweisen. Jedoch haben sich diese geschlechtsspezifischen Unterschiedë uber die Zeit verringert, da die Aufwärtsmobilität für Frauen in der langfristigen Sicht leicht zu-und für Männer leicht abgenommen hat. Das Wichtigste in Kürze Non-technical summaryStudying wage dynamics has been a key element of labor economics for a long time. One major finding is the widening of the wage distribution in most developed countries that started in the 1970s in several countries. In Germany, rising wage inequality was mainly driven by the disproportional wage increases in the upper-tail of the wage distribution in the 1970s before the lower-tail wage inequality started to increase since the 1990s as well. However, as long as individuals are able to move up the earnings distribution, a high degree of cross-sectional wage inequality is likely to exaggerate the extent of wage inequality over a working life.Thus, for any analysis of the evolution of lifetime wage inequality it is important to also take individual wage mobility over time into account. Wage mobility is defined as the change of an individual's relative position in the wage distribution between two periods. To this end, I make use of the regional file of the employment subsample of the Research Institute of the German Federal Employment Agency (SIAB data), which contains a 2% random sample of all social security records between 1975 and 2008 that cover approximately 80% of the overall German workforce. This paper gives a descriptive overview of the evolution of wage inequality and wage mobility separately for men and women in West and East Germany over the last four decades. The results show that the increase in wage inequality was accompanied by a decrease in wage mobility for both sexes in West and East Germany. Women face a higher level of wage inequality and a lower level of wage mobility than men in West and East Germany throughout the entire observation period. The mobility decline was sharper in East Germany so that the level of wage mobility has fallen below that of West Germany. Overall, the impact of wage mobility on reducing wage inequality has become...

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“…It is commonly suggested in the literature that wages are procyclical, i.e wages grow more rapidly during 14 While male (female) high-wage earners were on average 10 (5) 15 Thus, the probability of ascending from a low to a high paid job might be higher in times of low unemployment leading to a positive correlation between the GSD of low-wage workers and the unemployment rate. 15 The main explanation for his finding is that when productivity increases, low-wage workers may credibly threaten to quit to unemployment as their reservation wage increases with aggregate productivity. Thus, firms may be forced to renegotiate wages up.…”

Section: Cappellari and Jenkins 2004 And Cappellari 2007mentioning

confidence: 97%

“…This is particularly relevant as a number of authors has documented a widening in the distribution of labor earnings that is accompanied by a decline in mobility, giving rise to a larger persistence of low-wage employment (see Buchinsky and Hunt (1999) for the U.S., Cardoso (2006) for Portugal and Dickens (2000) for the U.K.). From a welfare perspective, a high degree of low-pay persistence is of particular concern as it tends to marginalize lowwage workers in the long run.…”

Section: Introductionmentioning

confidence: 99%

What Explains the Decline in Wage Mobility in the German Low-Wage Sector?

Aretz

Gürtzgen

2012

SSRN Journal

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Non-technical summaryWhile the German wage structure has long been considered relatively stable at lower percentiles, the past two decades have seen a clear tendency towards more earnings inequality at the bottom end of the earnings distribution as well as declining wage mobility. As a consequence, the low-wage sector has increasingly grown in importance. Two competing explanations may be relevant for the observed phenomenon. On the one hand, a larger degree of persistence in terms of "true"or "genuine"state dependence of low-wage employment may exist, which occurs if low-wage employment today causes low-wage employment in the future for reasons of stigmatization or human capital depreciation. Alternatively, a larger degree of persistence may be the result of a more unfavorable composition of the low-wage sector. The overall aim of our analysis is therefore to explore to what extent the observed decline in (West) German low-wage mobility reflects a rise in "true"state dependence by distinguishing the evolution of genuine state dependence from pure composition effects. We do so for the years 1984 to 2004 by using the administrative data set of the IAB Employment Subsample (IABS) which is a two per cent subsample of the German Employment Statistics Register.The descriptive statistics confirm the common trend of an increasing low-wage sector in Germany since the mid-1990s. With respect to the degree of low-wage persistence, we find a distinct increase in the share of individuals staying in the low-wage sector. We see, however, that part of this increase is due to a large shift of compositional factors. The proportion of young male low paid workers, e.g., who face a much smaller risk of sticking to a low wage than older employees, fell from 52% in 1984 to 24% in 2002. This illustrates the necessity to econometrically filter out the compositional factors by taking into account all observable characteristics that affect the extent of true state dependence.To obtain a measure of genuine state dependence, we make use of a trivariate probit model that accounts for the selection into low-wage employment and earnings retention. Our analysis shows that the extent of genuine state dependence among low-paid workers has increased most notably between 1987 and 1995. The results of a decomposition analysis illustrate that up to 54 per cent of the increase in genuine state dependence during the 1990s can be attributed to compositional shifts towards more unfavorable observable ch...

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Wage mobility: do institutions make a difference?

Cited by 39 publications

References 20 publications

Institutional legacies and HRM: similarities and differences in HRM practices in Portugal and Mozambique

Institutional legacies and HRM: similarities and differences in HRM practices in Portugal and Mozambique

Gender Differences in German Wage Mobility

What Explains the Decline in Wage Mobility in the German Low-Wage Sector?

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