Category Archives: Wage Inequalities

Occupation and Pay across the Generations: The Labour Market Experience of Four Ethno-religious Groups in Britain

Longhi S., Nicoletti C., Platt L. (2012) Occupation and Pay across the Generations: The Labour Market Experience of Four Ethno-religious Groups in Britain, in Social Stratification: Trends and Processes, ed. by P. Lambert, R. Connelly, B. Blackburn, V. Gayle, Ashgate: 151-165.

Interpreting Wage Gaps of Disabled Men: The roles of productivity and of discrimination

Using the UK Labour Force Survey, we study wage gaps for disabled men after the introduction of the Disability Discrimination Act. We estimate wage gaps at the mean and at different quantiles of the wage distribution and decompose them into a part explained by differences in workers’ and job characteristics, a part that can be ascribed to health‐related reduced productivity, and a residual part. The large original wage gaps reduce substantially when we control for differences in education and occupation, although significant residuals remain. However, when we isolate productivity differences between disabled and nondisabled workers, the residual wage gap becomes insignificant in most cases.

Longhi S., Nicoletti C., Platt L. (2012) Interpreting Wage Gaps of Disabled Men: The roles of productivity and of discrimination, Southern Economic Journal, 78 (3) 931-953.

Spatial Heterogeneity and the Wage Curve Revisited

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.

Longhi S., Nijkamp P., Poot J. (2006) Spatial Heterogeneity and the Wage Curve Revisited, Journal of Regional Science, 46 (4) 707-731.