Minimum Wage Policy,Rural Development and Poverty Alleviation in Malawi

This article examines the pattern of minimum wage changes in Malawi and some of their effects, and considers more generally the appropriateness of a minimum wage policy in developing country situations similar to that of Malawi. After a progressive decline in the real value of the minimum wage during the 1970s there is evidence that the government is attempting, through periodic and rather erratic corrective action, to maintain something like a constant real wage. Data from a Ministry of Labour survey demonstrate that such changes in the minimum wage do have a direct effect on wages paid, but that this is concentrated in specific sectors: outside these, minimum wage policy is ineffectual, and the effective coverage achieved in terms of the national work-force is very narrow. Since the most significant influence on the wages of hired workers is the elastic supply of unskilled labour available at very low wages from the smallholder sector, efforts need to be concentrated on raising the supply price of labour through positive policies pursued in the rural sector. Some special features of the rural labour market are therefore examined. Various measures could be taken here: one which seems likely to be effective in producing immediate results is the progressive transfer of burley tobacco quotas to smallholders.     

Interregional Wage Disparities, Relocation Costs, and Labor Mobility in Canada

This paper evaluates possible reasons why interregional wage differences might persist over long periods of time, such as a century or more. A general equilibrium model of interacting regions is developed which can consider explanations including interregional differences in production costs, changes in relocation (migration) costs, and differences in interregional transfer payments. Implications from the model are tested using panel microdata from the Canadian Labour Market Activity Surveys of 1989 and 1990. Key findings are that younger, better educated, native English-speaking workers, who presumably have better information and lower mobility costs, appear to have the smallest interregional wage differences. Thus, because the extent of spatial wage dispersion varies across workers with different characteristics, changes in the pattern of spatial wage disparities over time may be in part a demographic phenomenon.     

WHAT DRIVES THE URBAN WAGE PREMIUM? EVIDENCE ALONG THE WAGE DISTRIBUTION

This paper aims at disentangling the role played by different explanations on the urban wage premium along the wage distribution. We analyze the wage dynamics of migrants from lower to higher density areas in Italy, using quantile regressions and individual data. The results show that unskilled workers benefit more from a wage premium accruing over time, while skilled workers enjoy a wage premium when they migrate as well as a wage increase over time. Further, we find that for unskilled workers the wage growth over time is mainly due to human capital accumulation in line with the “learning” hypothesis, while for skilled workers the wage growth is mainly explained by the “coordination” hypothesis, i.e., cities enhance the probability of better matches between workers and firms.     

Policy Characteristics,Patterns of Politics,and the Minimum Wage: Toward a Typology of Redistributive Policies

The central hypothesis of all policy typologies is that distinctively different patterns of politics can be identified for different types of public policy issues. Lowi identified three different policy types, which he termed distributive, regulative, and redistributive, each of which triggers a distinctively different pattern of political behavior. Unfortunately, Lowi's categories were inductively derived and ambiguously defined, leading to disagreements over how to categorize particular policies. Hayes built on Lowi's seminal effort, deriving Lowi's three policy categories from two underlying dimensions and identifying additional categories Lowi's original formulation had missed. Using the minimum wage issue as an example, this article will identify a critical deficiency in both these typologies. While Hayes' typology defines the boundaries between policy categories more precisely than Lowi's, neither typology is equipped to deal with variations in political patterns occurring within a particular cell. As this article will show, the minimum wage issue, although consistently redistributive in Hayes' terms, has manifested three very different patterns of politics at different points in time. Accordingly, a typology of redistributive policies will be advanced to account for these variations in the redistributive politics of the minimum wage.     

Employment Change in Occupations in Urban India: Implications for Wage Inequality

This article analyses employment and wage change patterns in India for a period spanning almost three decades, from 1983–84 to 2011–12. Using data from the National Sample Survey Organization, the study finds evidence of job polarization (employment growth in low‐ and high‐skill jobs and decline in middle‐skill jobs) in urban India during the 1990s and 2000s, and employment upgrading in the 1980s. Consistent with the literature on job polarization, the article finds a reduction in employment share in routine task intensive occupations. The author argues that this reduction is a result of both mechanization and technological upgrading within Indian industry. On the other hand, an increase in employment share in both low‐skill and high‐skill occupations is argued to be a result of growing self‐employment and informal sector employment in urban India. The wage change patterns are largely consistent with the employment change patterns. The analysis suggests that structural change in occupation is an important factor for understanding earnings inequality in India.     

The $15 Wage Movement Moves South: Politics of Region in Labor Union Campaigns

The North American labor movement continues to wrestle with the challenges of organizing workers in the US South. This article explores the contradictory position of the South in the contemporary labor movement, using the circulation of the $15 minimum wage to ground the analysis. By problematizing the place of the South in US labor, this article contributes to efforts to complicate the geographic imaginaries of the South and to our understanding of the contemporary labor movement's expansionary projects. Drawing on qualitative interviews and participant observation in Greensboro and Durham, North Carolina, and Richmond, Virginia, I trace the abstract circulation of organizational resources, strategies, and tactics of the $15 wage movement into, throughout, and back out of the South.     

Regional Wage Inequality in China, 1996-2010

This paper examines regional wage inequality in China between 1996 to 2010, subdividing that time span into a period of increased wage inequality during 1996-2002 and one of stable to decreasing inequality for 2003-2010. Based on the interplay between wage levels and wage growth, the authors develop a typology whereby China's provinces can be assigned to either peripheral, emerging, lagging, or leading regions. The particular characteristics associated with each type of wage region, and the factors underlying shifts of particular provinces from one category to another between the two periods, enable them to identify specific causes for the reversal (after 2002) of the trend toward increasing wage inequality (the causes especially reflect wage patterns in the mining and energy industries, information and communication technology industries, and foreign-invested enterprises). The recent wage convergence involves instances of both interior provinces advancing from the "emerging" to the "leading" wage category as well as the decline of a few "leading" coastal provinces to "lagging" status.     

The Effectiveness of Jobs Reservation: Caste,Religion and Economic Status in India

This article investigates the effect of jobs reservation on improving the economic opportunities of persons belonging to India's Scheduled Castes (SC) and Scheduled Tribes (ST). Using employment data from the 55^th NSS round, the authors estimate the probabilities of different social groups in India being in one of three categories of economic status: own account workers; regular salaried or wage workers; casual wage labourers. These probabilities are then used to decompose the difference between a group X and forward caste Hindus in the proportions of their members in regular salaried or wage employment. This decomposition allows us to distinguish between two forms of difference between group X and forward caste Hindus: ‘attribute’ differences and ‘coefficient’ differences. The authors measure the effects of positive discrimination in raising the proportions of ST/SC persons in regular salaried employment, and the discriminatory bias against Muslims who do not benefit from such policies. They conclude that the boost provided by jobs reservation policies was around 5 percentage points. They also conclude that an alternative and more effective way of raising the proportion of men from the SC/ST groups in regular salaried or wage employment would be to improve their employment‐related attributes.     

SPATIAL HETEROGENEITY AND THE WAGE CURVE REVISITED*

ABSTRACT Most “wage curve” studies ignore the geography of local labor markets. However, when a local labor market is in close proximity of other labor markets, a local shock that increases unemployment may not lead to lower pay rates if employers fear outward migration of their workers. Hence, the unemployment elasticity of pay will be greater, the more isolated the local labor market is. Wages are also expected to be higher in regions that interact strongly with other regions. These hypotheses are confirmed by means of an estimation of wage curves with data for 327 regions of western Germany over the period 1990–1997.     

CHANGES IN THE RELATIVE EARNINGS GAP BETWEEN NATIVES AND IMMIGRANTS ALONG THE U.S.‐MEXICO BORDER*

ABSTRACT Using 1990 and 2000 U.S. census data, this study investigates changes in immigrant/native earnings disparities for workers in U.S. cities along the international border with Mexico vis‐à‐vis the U.S. interior during the 1990s. Our findings—based on estimating earnings functions and employing the Juhn‐Murphy‐Pierce (1993, JPE) wage decomposition technique—indicate that the average earnings of Mexican immigrants along the U.S.‐Mexico border improved relative to those accrued by their counterparts in the U.S. interior and by otherwise similar U.S.‐born Mexican Americans between 1990 and 2000. However, when comparing Mexican‐born workers to U.S.‐born non‐Hispanic whites, the immigrant border‐earnings penalty remained statistically unchanged.     

JOB CHAINS AND WAGE CURVES: WORKER MOBILITY AND MARSHALLIAN SURPLUSES IN EVALUATING REGIONAL EMPLOYMENT GROWTH*

ABSTRACT In theory, new regional jobs yield two distinct sources of welfare gains to workers: (1) mobility gains achieved by workers as they move up job chains and (2) traditional Marshallian surpluses enjoyed by all workers as labor markets tighten. In the past, we have argued that the second channel is likely to be small relative to the first. This paper integrates a chain model (using PSID job change data) with a modified‐Marshallian model based on “wage curves” (estimated from CPS data) to formalize and test that argument. High wage jobs with modest wage–unemployment elasticities show Marshallian effects only 10 percent to 20 percent the size of mobility effects. Low wage jobs with somewhat higher elasticities show Marshallian effects from 40 percent to 70 percent the size of mobility effects.     

Migration, Job Change, and Wage Growth: A New Perspective on the Pecuniary Return to Geographic Mobility

Abstract Using data from the National Longitudinal Survey of Youth 1979, this study examines the pattern of early career job mobility and migration in a sample of young male workers. Primary interest lies in the between–job wage change accompanying job transitions as well as the extended time–profile of migrant earnings. When the sample of job transitions is partitioned by education level, contemporaneous returns are found only for workers with twelve or less years of completed schooling. In contrast, highly educated workers demonstrate significant extended returns to migration with the bulk of pecuniary rewards accruing with a lag of nearly two years.     

Does geographical location matter for ethnic wage gaps?

This paper analyzes ethnic wage gaps in Great Britain by comparing minorities to majority workers in the same local labor market and focuses on the variation of wage gaps across areas. As wage gaps vary across areas, using one single national measure may be misleading. Higher wage gaps across groups are associated with higher occupational segregation and ethnic diversity, while higher wage gaps within groups are associated with higher regional specialization and proportion of co-ethnics. Policies could help by improving job location and selection into occupations across groups.     

Challenging the ‘Slave-Driving Employers’: Understanding Victoria's 1896 Minimum Wage through a World-History Approach

In 1896 the colony of Victoria introduced the world's first legal minimum wage that also extended to adult men. It was much discussed around the world by commentators who saw its significance in terms of its radical break with the past. Traditionally conceptualised as an outcome of a domestic anti-sweating movement that focused on the exploitation of women and children in the clothing industry, I suggest that the radical innovation of the minimum wage is best explained if we adopt a world-history approach that recognises the potency of anti-slavery discourse in the nineteenth century, the encounter of British and Chinese workers in the context of urban manufacturing in 1890s Melbourne, and the ways in which the minimum wage, later theorised as a living wage, made the humanity of workers central to modern definitions of labour.     

The minimum wage and seasonal employment: Evidence from the US agricultural sector

Nearly 40% of agricultural workers in the United States earn an hourly wage that is within 10% of the prevailing state-level minimum wage. We evaluate the impact of the minimum wage on farm employment using county-level data from the United States Census of Agriculture. We employ long-differences specifications and find evidence of a dynamic, negative effect of the minimum wage on seasonal agricultural employment, but no effect on year-round agricultural employment. We estimate a long-run elasticity of total agricultural employment with respect to the minimum wage of about −0.40, which is both statistically and economically significant. Employers’ total expenditures on hired agricultural workers are not affected by the minimum wage. Finally, our analysis suggests that increases in minimum wages may lead to higher capital investment as well as the consolidation of farming operations in the agricultural sector.     

The Hand Writing on the Screen

Abstract.

In this article, researchers evaluate the empirical performance of the Mincer earnings equation, which has been the benchmark model for assessment of wage profiles since 1974. The analysis concerns workers in the manufacturing industry in three countries before 1900. The Mincer equation must be adjusted with respect to functional form in order to capture the wage profiles of past industrial workers. The quadratic spline consistently provides the best fit, while the standard quadratic produces misleading estimates of wage changes and gender wage gaps. These conclusions hold across contexts, for men and women, and for both age and experience profiles. The results have methodological relevance for estimating historical wage profiles and also have implications for the assessment of gender wage gaps in the past.     

Transitions to Formality and Declining Inequality: Argentina and Brazil in the 2000s

Although inequality and labour informality continue to be distinctive characteristics of Argentina and Brazil, during the last decade the two countries have been successful in reversing the negative trends of the 1990s. This article presents a comparative analysis of the labour formalization process that took place in Argentina and Brazil during the 2000s. It studies the flows towards labour formality, what caused them, and the interrelations of this process with the changes that occurred in labour institutions and the decline in income inequality. The study contributes to two debates: the role of labour market flexibilization in employment formalization, and the decline in income inequality. Most of the literature emphasizes the evolution of returns to education; this study complements this approach by analysing the contribution of formalization to the decline in inequality in Argentina and Brazil. The results show that labour formalization has reached all categories of workers, that it has been accompanied by real minimum wage increases, and that it has had an equalizing effect.     

20世纪50年代上海新公私合营企业的工资改革

1956年,全行业公私合营后不久,鉴于建立统一的政治体制及与计划经济体制相适应的新工资制度的需要,国家开始在新公私合营企业中实行工资改革。上海新合营企业的工资改革与全国各地一样正式开始于1956年9月,但由于情况复杂,历经准备试点及全面推开等阶段,直到1957年10月才基本结束。其中工资改革的集中统一领导,工资水平与工资增长指标,新工资等级,变相工资、计件工资、保留工资等问题成为工资改革中最重要的内容。新合营企业工资改革的完成,标志着与计划经济体制相适应的统一的企业工资制度开始全面确立,在收入分配环节上,基本完成了对新合营企业从产权到治理结构、再到分配制度的崭新的企业制度安排。     

MIGRATION,SKILL FORMATION,AND THE WAGE STRUCTURE*

ABSTRACT We analyze the impacts of migration and of labor market integration on the distribution of skills and the wage structure in both the short and the long run. To do so, we develop a framework where workers have heterogeneous skills and where in‐migration expands the range of available skills in the economy. In the short run, this expansion leads to productivity gains, which may more than offset the negative endowment effects of a larger labor supply so that all workers may be better off. In the long run, in‐migration impacts wages further by altering the workers' incentives to acquire skills, thereby affecting the wage structure indirectly by changing the economy's skill composition. Since the short and the long‐run effects of in‐migration on wages may differ, compositional changes may be an important element to take into consideration. A numerical illustration calibrated on U.S. data suggests that the immigration of skilled workers negatively affects the incentives for domestic skill formation, thereby suggesting that endowment effects dominate externalities. We finally extend the model to cope with the simultaneous impacts that migration and skill formation have on the host and the source region, and we show that more migration increases wage disparities and the skill gap across regions.     

The peasantariat and politics: migration,wage labor,and agriculture in Botswana

This article examines Botswana's wage labor migration in terms of 2 reigning theories: 1) as a dichotomy between traditional and modern society, with workers viewing agriculture as an alternative to more desirable wage employment; or 2) as a subordination of colonial society to capitalist society, with workers drawn from the resulting underdeveloped and impoverished areas and divorced from their agricultural potential. Approximately 90% of Botswanan households have a wage worker; less than 1/4 of households rely on the agricultural economy alone. 80% of the population works in agriculture in some way, but agriculture contributes only 35% of total rural income. Over 50% of households are below the poverty level, and most must rely on a variety of income sources for subsistence. 68% of rural households (Botswana is 84% rural) have absent wage earners while 45% have 1 or more wage earners present. Absent wage earners work mainly in unskilled and semi-skilled jobs in Botswanan towns (44%) and villages (22%), and lands and cattlepost locations (5%) in South African mines (19%), and other jobs in South Africa (8%). Individuals with low socioeconomic status tend to migrate to South Africa; those with higher status move to Botswanan towns. Working for wages has become customary for most Botswanans. This article undermines conventional development theories by showing the close interweaving of the modern and traditional societies, and arguing that traditional retention of communal land rights and cattle ownership served the capitalistic system by becoming the basis for wage earning; previous income source (agriculture) did not disappear, but their use was altered. South African mining returns to the Botswanan government since 1965 largely benefited a growing petty-bourgeois class and marginally improved the life styles of the peasant labor class. Botswana's development depends on the relationship between the peripherial laboring class and the dominating petty-bourgeois and its internal structure.