wages

Union Density, Productivity, and Wages

We exploit tax-induced exogenous variance in the price of union membership to identify the effects of changes in firm union density on firm productivity and wages in the population of Norwegian firms over the period 2001 to 2012. Increases in union density lead to substantial increases in firm productivity and wages having accounted for the potential endogeneity of unionization. The wage effect is larger in more productive firms, consistent with rent-sharing models.

Has Performance Pay Increased Wage Inequality in Britain?

Using data from the British Household Panel Survey (BHPS) we show performance pay (PP) increased earnings dispersion among men and women, and to a lesser extent among full-time working women, in the decade of economic growth which ended with the recession of 2008. PP was also associated with some compression in the lower half of the wage distribution for women. The effects were predominantly associated with a broad measure of PP that included bonuses.

Who fared better? The fortunes of performance-pay and fixed-pay workers through recession

We examine whether those paid for performance fared better in terms of wage growth and job tenure than their fixed pay counterparts through the most recent recession. In theory we might anticipate that, since performance pay workers share the income risks of economic shocks with their employers, their earnings may have declined more than those of fixed pay employees. However, for this very reason, they may experience more stable employment patterns than fixed pay workers whose ‘stickier’ wages may make them susceptible to job loss.

The performance pay premium: how big is it and does it affect wage dispersion?

Poster presentation at Workshop on Firm-Level Analysis of Labour Issues, Louvain-la-Neuve (UCL-Belgium), 28 May 2014

The Performance Pay Premium: How Big Is It and Does It Affect Wage Dispersion?

Using nationally representative linked employer-employee data we find one-quarter of employees in Britain are paid for performance. The log hourly wage gap between performance pay and fixed pay employees is .36 points.  This falls to .15 log points after controlling for observable demographic, job and workplace characteristics. It falls still further to .10 log points when comparing "like" employees in the same workplace, indicating that performance pay contracts are used in higher paying workplaces.

Pay Equity After the Equality Act 2010: Does Sexual Orientation Still Matter?

Using nationally-representative linked employer-employee data for Britain I find bisexual men earn around 31% less per hour than heterosexual men, a differential that falls to 20% having controlled for demographic, job and workplace characteristics.  The gap is apparent within workplaces and within detailed occupational classifications.

Pay Equity After the Equality Act 2010: Does Sexual Orientation Still Matter?

Using linked employer-employee data for Britain I find bisexual men earn around 31% less per hour less than heterosexual employees, a differential that falls to 20% having controlled for demographic, job and workplace characteristics.  The gap is apparent within workplaces and within detailed occupational classifications.

Pay Equity After the Equality Act 2010: Does Sexual Orientation Still Matter?

Using linked employer-employee data for Britain I find bisexual men earn around 31% less per hour less than heterosexual employees, a differential that falls to 20% having controlled for demographic, job and workplace characteristics. The gap is apparent within workplaces and within detailed occupational classifications. There is no wage differential between gay and heterosexual men. Among women, on the other hand, there is no wage gap between bisexuals and heterosexuals.

Union wage effects What are the economic implications of union wage bargaining for workers, firms, and society?

Despite declining bargaining power, unions continue to generate a wage premium. Some feel collective bargaining has had its day. Politicians on both sides of the Atlantic have recently called for the removal of bargaining rights from workers in the name of wage and employment flexibility, yet unions often work in tandem with employers for mutual gain based on productivity growth. If this is where the premium originates, then firms and workers benefit.

Why Are Migrants Paid More?

In efficient global labour markets for very high wage workers one might expect wage differentials between migrant and domestic workers to reflect differences in labour productivity. However, using panel data on worker-firm matches in a single industry over a seven year period we find a substantial wage penalty for domestic workers which persists within firms and is only partially accounted for by individual labour productivity. We show that the differential partly reflects the superstar status of migrant workers.

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