Javascript must be enabled to continue!
How Employer Wage-Setting Shapes Working Poverty
View through CrossRef
Even hiring for the same occupation, some employers post the lowest wage possible, while others follow a high-road strategy. How does employer power over wage-setting shape working poverty? High-premium employers may lift workers out of poverty, but they may also exclude low-income applicants. We link household panel income data to employer wage records and find working poverty rates four times higher at low-premium employers, compared to high-premium employers, and poor hires twice as likely to stay in poverty. However, high-premium employers hire poor workers so rarely that they lift workers out of poverty less often than low-premium employers do. Employer pay-setting is a key determinant of working poverty overall: if all employers became high-premium, without changing employment composition, the working poverty rate would decrease by two-fifths. But reshuffling workers across employers would have little impact, as low-premium employers continue to pull workers into poverty. While low-paying employers harbor and produce the working poor, high-paying employers exclude them altogether.
Title: How Employer Wage-Setting Shapes Working Poverty
Description:
Even hiring for the same occupation, some employers post the lowest wage possible, while others follow a high-road strategy.
How does employer power over wage-setting shape working poverty? High-premium employers may lift workers out of poverty, but they may also exclude low-income applicants.
We link household panel income data to employer wage records and find working poverty rates four times higher at low-premium employers, compared to high-premium employers, and poor hires twice as likely to stay in poverty.
However, high-premium employers hire poor workers so rarely that they lift workers out of poverty less often than low-premium employers do.
Employer pay-setting is a key determinant of working poverty overall: if all employers became high-premium, without changing employment composition, the working poverty rate would decrease by two-fifths.
But reshuffling workers across employers would have little impact, as low-premium employers continue to pull workers into poverty.
While low-paying employers harbor and produce the working poor, high-paying employers exclude them altogether.
Related Results
Wage policy models: what implications for vulnerable employees?
Wage policy models: what implications for vulnerable employees?
Purpose– The purpose of this paper is to explore the impact of the employer’s wage policy on the wage dynamics of vulnerable groups of employees at large firms, including younger e...
How Does Government Wage Policy Affect Wage Bargaining in Brazil?
How Does Government Wage Policy Affect Wage Bargaining in Brazil?
Over the last thirty years, Brazil has had official wage policies, with the government determining the minimum rate of adjustment for all wages in the formal sector of the Brazilia...
Employer brand equity measurement
Employer brand equity measurement
Purpose
– This paper aims to assess the value of the employer brand through employer brand equity.
Design/methodology/appr...
Employee Online Reviews and Corporate Wage Theft
Employee Online Reviews and Corporate Wage Theft
<div>
Wage theft occurs when an employer withholds benefits, such as wages and breaks, to <span>which an employee is legally entitled. This practice is the la...
Determining the relationship between unemployment and minimum wage in Turkey
Determining the relationship between unemployment and minimum wage in Turkey
The minimum wage, which has increased more than tenfold in Turkey since 2014, has been a controversial topic for Turkish economic policy in the last few years. This controversy is ...
RETRENCHING EMPLOYEES IN STAGES TO CIRCUMVENT SECTION 189A OF THE LRA NUMSA v Continental Tyre (as yet unreported – Labour Court 2005)
RETRENCHING EMPLOYEES IN STAGES TO CIRCUMVENT SECTION 189A OF THE LRA NUMSA v Continental Tyre (as yet unreported – Labour Court 2005)
As a result of pressure from the trade union movement to reconsider the policy norms governing retrenchments, significant amendments, both procedural and substantive, were made to ...
On poverty and the persistence of poverty in Benin
On poverty and the persistence of poverty in Benin
PurposeThe purpose of this paper is to examine the determinants of poverty and the persistence of poverty in Benin using a longitudinal data for the years 2006-2011. The paper also...
Promoting sustainable development: future prospects for minimum wage in Europe by 2024
Promoting sustainable development: future prospects for minimum wage in Europe by 2024
The long path of global development, largely driven by the desire to increase profits and minimize suffering, has had serious consequences for the environment, social structure and...

