Wage inequality of immigrants by type of contract in Spain

2014 ◽  
Vol 35 (6) ◽  
pp. 817-833 ◽  
Author(s):  
Antonio Caparrós Ruiz

Purpose – The purpose of this paper is to approach a new aspect of the assimilation of immigrants in Spain. In particular, it is analyzed the effect of the type of contract on immigrant wages. The data used in this analysis come from the Spanish National Immigrant Survey, which was conducted by the Spanish Statistics Institute (INE) between 2006 and 2007. Design/methodology/approach – First, the methods and econometric specifications applied develop a wage model where the variable “contract type” is considered as an endogenous regressor. Second, the average wage gap between temporary and permanent workers is decomposed between a portion attributable to differences in characteristics and another to differences in coefficients. Findings – It is found that workers with a permanent contract received a wage premium with respect to temporary workers even for equal work and equal productivity. Social implications – Results indicate the importance of job stability for the integration and assimilation of immigrants in Spain, and offer an economic argument to support labour policies that encourage stable employment relationships. Originality/value – This paper takes a novel approach of the assimilation of immigrants in the Spanish labour market.

2019 ◽  
Vol 40 (7) ◽  
pp. 1319-1346
Author(s):  
Xisco Oliver ◽  
Maria Sard

Purpose The purpose of this paper is to analyse the wage gap between temporary and permanent workers across the whole wage distribution, not just at the mean, and the evolution before and after the Great Recession on this gap in Spain. Design/methodology/approach An extended Mincer-type wage equation is estimated using ordinary least square regression and unconditional quantile regression. Then, the decomposition of the wage gap between workers with fixed-term and permanent contracts for each quantile is made using the Fortin, Lemieux and Firpo decomposition. Findings The results show that two workers, with identical characteristics, earn different salaries if they have a different type of contract. However, the wage gap is not constant across the wage distribution. The penalty for temporary workers is wider for higher wages. Moreover, the main part of the gap is due to observed characteristics, but other factors (unobserved characteristics and discrimination) become more relevant in the upper part of the wage distribution. Originality/value The study expands upon available studies for Spain in two points. First, it is the first paper to the knowledge that analyse both the wage gap between temporary and permanent workers across the wage distribution and its decomposition. Second, the paper explores what happened before and after the Great Recession. In the years that the paper analyses there is also a labour market reform.


2016 ◽  
Vol 31 (1) ◽  
pp. 79-94 ◽  
Author(s):  
Maria J Chambel ◽  
Laura Lorente ◽  
Vânia Carvalho ◽  
Isabel Maria Martinez

Purpose – Based on the psychological contract (PC) theory, the purpose of this paper is to identify PC profiles, differentiating between permanent and temporary agency workers (TAW). Moreover, the authors analyzed whether different profiles presented different levels of work engagement. Design/methodology/approach – A cross-sectional survey data analysis of 2,867 workers, of whom 1,046 were TAW, was analyzed using latent profile analyses. Findings – Four PC profiles were identified, which differed quantitatively in terms of the overall dimension levels (i.e. balanced, relational and transactional) for PC (i.e. content and fulfillment). ANCOVAs showed that the relational/balanced dominant and transactional dominant profiles presented similar engagement levels for TAW, but for permanent workers the former profile showed higher engagement than the latter. However, for both permanent and TAW the fulfillment profile showed higher engagement than the unfulfillment profile. Research limitations/implications – The cross-sectional design and the reliance on self-report measures are the limitations of this study, although no causality was claimed and method biases were controlled. Practical implications – Actions that increase PC fulfillment positively affect the employment relationship of TAW with the client organization. Originality/value – Few studies have addressed PC typologies. Furthermore, most studies have focussed on temporary workers, but not on TAW and their contract with the client organization. Finally, this study emphasizes the crucial role played by the PC in the levels of work engagement.


2018 ◽  
Vol 39 (7) ◽  
pp. 937-953
Author(s):  
Tanja Buch ◽  
Annekatrin Niebuhr

Purpose The purpose of this paper is to investigate whether labour market entry via temporary work has any (persistent) effects on labour market outcomes. Design/methodology/approach Using unique data on several cohorts of graduates from the German apprenticeship system, the authors interpret labour market entry via temporary work agency (TWA) work as a treatment and apply propensity score matching and the control function approach to investigate corresponding effects. Findings The results indicate a pronounced wage gap but no significant wage disadvantage in the medium term for graduates who switch to regular employment. Nevertheless, approximately 30 per cent of the graduates do not manage to leave the temporary help sector and, as a result, suffer persistent wage penalties. Originality/value The numerous studies that investigate the consequences of TWA work on individual labour market performance have not considered the specific situation of young workers after graduation. The rapidly increasing percentage of TWA jobs and the above average share of young workers among temporary workers call for corresponding evidence.


Author(s):  
Joanna Tyrowicz ◽  
Lucas Augusto van der Velde

AbstractWe present empirical evidence that large structural shocks are followed by changes in labor market inequality. Specifically, we study short-run fluctuations in adjusted gender wage gaps (unequal pay for equal work) following episodes of structural shocks in the labor markets, using several decades of individual data for a wide selection of transition countries. We find that for cohorts who entered the labor market after the onset of transition. Labor market shocks lead to significant declines in the gender wage gap. This decrease is driven mostly by episodes experienced among cohorts who enter the labor market during the transition. By contrast, we fail to find any significant relation for cohorts already active in the labor market at the time of transition. We provide plausible explanations based on sociological and economic theories of inequality.


2010 ◽  
Vol 9 (1) ◽  
pp. 40-49 ◽  
Author(s):  
Nele De Cuyper ◽  
Saija Mauno ◽  
Ulla Kinnunen ◽  
Hans De Witte ◽  
Anne Mäkikangas ◽  
...  

The aim of the study was to investigate contract type (temporary vs. permanent employment) as a possible moderator in the relationship between autonomy and workload on the one hand, and job involvement on the other hand in samples from two countries: Belgium and Finland. The results on possible interactions were similar in the two countries. Contract type moderated the relationship between autonomy and job involvement: The relationship was stronger in permanent than in temporary workers. No moderation was found for workload. Instead, workload associated positively with job involvement in both temporary and permanent workers. These findings are discussed with reference to the activation hypothesis as implied in the Job Demand-Control Model and earlier insights from psychological contract theory and research.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rabeh Morrar ◽  
Fernando Rios-Avila

PurposeThis paper examines the level and structure of the wage inequality between nonrefugee and refugee workers in Palestine and the extent to which such wage gap reflects any marginalization and discrimination against refugees. It also investigates how the disparities in distribution to individual worker characteristics contribute to the wage inequality in Palestine.Design/methodology/approachThe authors use both Oaxaca and Blinder (OB) (Oaxaca, 1973 and Blinder, 1973) and Fortin et al. (2011) unconditional quantile decomposition approaches to measure the size of the wage gap along with the wage distribution and to decompose the wage differences into productivity (i.e. explained or the composition effects) and wage structure effects (i.e. unexplained or discrimination effects).FindingsResults indicate that most of the wage gap between refugees and nonrefugees is attributed to the wage structure effect (possibly explained by discrimination) against refugees in the Palestinian labor market. The wage gap between refugees and nonrefugees is not uniform throughout the wage distribution and supports the “sticky floor effect.”Practical implicationsThis work introduces important policy implications for the policymakers in the Palestinian labor market. It reveals the economic and social factors, individual worker characteristics as well as labor market characteristics contribute to the wage inequality in Palestine.Social implicationsThis research reveals a crucial social challenge in the Palestinian society, represented by the wage discrimination against refugees in Palestine. This is despite the denial of such discrimination from official bodies, local institutions and many other policymakers. It also captures gender inequality between men and women.Originality/valueThis is the first empirical work in Palestine that contends with a very sensitive issue in the Palestinian society, that is, the discrimination against refugees in the Palestinian labor market. Most of the existing studies have approached this issue from a humanitarian view in order to show the deterioration of social and economic situations in the refugee camps.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Thanh-Tam Nguyen-Huu

Purpose This paper aims to investigate the wage gap between temporary and permanent workers in Pakistan and Cambodia. Design/methodology/approach Quantile regression estimator is likely to be the most relevant to the sample. Findings The estimates indicate the presence of a temporary employment wage penalty in Pakistan and contrarily a wage premium in Cambodia. Moreover, quantile regression estimates show that wage differentials could greatly vary across the wage distribution. The wage gap is wider at the bottom of the wage distribution in Pakistan, suggesting a sticky floor effect that the penalty of being in temporary jobs could be more severe for disadvantaged workers. By contrast, a glass ceilings effect is found in Cambodia, indicating that the wage premium is small at the bottom and becomes high at the top of the pay ladder. Originality/value Despite the rise of temporary jobs in the past several decades, the empirical evidence on wage differentials between temporary and permanent workers is extremely limited in developing Asian countries. This paper is the first research work that systematically examines the temporary-permanent wage gap in selected Asian countries, based on their National Labor Force Survey data.


2014 ◽  
Vol 19 (1) ◽  
pp. 101-122 ◽  
Author(s):  
Marieke van den Tooren ◽  
Jeroen de Jong

Purpose – The aim of this paper is to investigate whether the main propositions of the job demands-resources (JDR) model are moderated by type of contract (i.e. temporary contract vs permanent contract). Design/methodology/approach – Survey data were collected in a large, heterogeneous sample from different countries, sectors, and jobs (n=3,845). Hypotheses were tested by means of multilevel analyses. Findings – Results showed moderate support for the main effects of job demands (job insecurity and time pressure) and job resources (autonomy and social support) and weak support for the buffer effect of job resources in the prediction of job satisfaction and general health. The impact of contract type on the main propositions of the JDR model appeared to be weak. Yet, the evidence that was found suggests that temporary workers may be more tolerant to job insecurity and more likely to benefit from the buffering role of autonomy than permanent workers. Originality/value – This is the first study to investigate whether the relation between job demands and job resources and employee health and well-being differs for permanent workers and temporary workers.


2016 ◽  
Vol 38 (6) ◽  
pp. 946-960 ◽  
Author(s):  
Tom Turner ◽  
Darragh Flannery

Purpose After 20 years of social partnership in Ireland the purpose of this paper is to use a national survey of firms and employees to examine the extent of the wage gap between union and non-union workers in the private sector and compare the degree of wage inequality in union and non-union firms and among union and non-union employees. Design/methodology/approach The analysis in the paper is based on the National Employment Survey carried out by the Central Statistics Office in October 2008. Approximately 9,000 enterprises were sampled and almost 5,000 enterprises responded – a response rate of over 50 per cent while almost 100,000 employees were sampled and 65,535 completed the questionnaire – a response rate of over 60 per cent. In total 22 per cent (14,619) of respondents worked in the public sector and 78 per cent (50,916) in the private sector. Findings It appears that over time the earnings premium enjoyed by unionised workers has declined. This may reflect a long term decline in union bargaining power in the private sector as union density levels have declined. Even so unionised employees enjoy a wage premium over non-union employees and collective coverage appears to reduce levels of income inequality. However, the overall union wage gap is relatively modest – being generally below 10 per cent possibly due to the harmonising effects associated with the period of social partnership supported by government trade unions and employers. Research limitations/implications The cross-sectional nature of the data means that the factors associated with variations in employee earnings over time cannot be identified. Practical implications There is substantial evidence of a considerable spill-over effect as nationally agreed rates of pay percolated from the union to the non-union sector. It may also be the case that social partnership has acted to reduce wage inequality in non-union as well as union establishments. It appears that partnership type arrangements have the capacity to deliver for all workers in the private sector. Originality/value A unique aspect of the national survey data used here is the availability of employer/employee matched data from a robust national level survey with measures of union membership, earnings, individual and employment characteristics.


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