Wage inequality and the role of multinationals:evidence from UK panel data

Despite the increased attention on the impacts of globalisation, there has been little empirical investigation into the impact of multinational firms on the domestic labour market and in particular wage inequality, this is in spite of a rapid increase in foreign direct investment (FDI) at around the same time of rising inequality. Using UK panel data, this paper tests whether inward flows of FDI have contributed to increasing wage inequality. Even after controlling for the two most common explanations of wage inequality, technology and trade, we find that FDI has a significant effect upon wage inequality, with the overall impact of FDI explaining on average 11% of wage inequality. © 2003 Elsevier B.V. All rights reserved.

Do women earn less even as social entrepreneurs? The gender pay gap among UK social enterprise directors

Based upon unique survey data collected using respondent driven sampling methods, we investigate whether there is a gender pay gap among social entrepreneurs in the UK. We find that women as social entrepreneurs earn 29% less than their male colleagues, above the average UK gender pay gap of 19%. We estimate the adjusted pay gap to be about 23% after controlling for a range of demographic, human capital and job characteristics, as well as personal preferences and values. These differences are hard to explain by discrimination since these CEOs set their own pay. Income may not be the only aim in an entrepreneurial career, so we also look at job satisfaction to proxy for non-monetary returns. We find female social entrepreneurs to be more satisfied with their job as a CEO of a social enterprise than their male counterparts. This result holds even when we control for the salary generated through the social enterprise. Our results extend research in labour economics on the gender pay gap as well as entrepreneurship research on women’s entrepreneurship to the novel context of social enterprise. It provides the first evidence for a “contented female social entrepreneur” paradox.

A way of explaining unemployment through a wage-setting game

We investigate a duopsonistic wage-setting game in which the rms have a limited number of workplaces. We assume that the rms have heterogeneous productivity, that there are two types of workers with dierent reservation wages and that a worker's productivity is independent of his type. We show that equilibrium unem- ployment arises in the wage-setting game under certain conditions, although the efficient allocation of workers would result in full employment.

A magyar minimálbér-szabályozás és hatása a foglalkoztatásra, különösen 2000-től napjainkig (Minimum-wage regulation in Hungary and its impact on employment, with particular respect to the 2000’s)

Noha az 1990-es évek első felében felbomlott az akadémiai közgazdászok sok évtizeden át örök érvényűnek hitt közmegegyezése a minimálbér szükségképpen negatív foglalkoztatási hatásáról, a túlságosan magas minimálbért minden közgazdász foglalkoztatáscsökkentő hatásúnak jósolja. Tanulmányunkban a magyar minimálbér-szabályozást e hatás szempontjából vizsgáljuk és értékeljük. / === / Although the long-held view of an unambiguously negative employment effect of a binding minimum wage was challenged by empirical findings in the early 1990’s, it is unanimously predicted that if the minimum wage is set too high it will bring about adverse employment effects. Accordingly, our study starts from an evaluation of the magnitude of the Hungarian minimum wage, i.e., of how it relates to minimum wage rates elsewhere, and of how it has developed through time. Next we inspect the main features that characterize the Hungarian system of minimum wage regulation. Theoretical views on the potential employment effect of minimum wage regulation are then surveyed and contrasted to empirical findings. The study concludes by policy recommendations. To sum up the main strand of arguments, we try to demonstrate that even though Hungary’s minimum wage, if assessed by its ratio to average and/or median full-time earnings, does not appear particularly high by international standards, it might rightly be regarded as unreasonably high in light of Hungary’s excessively low relative rate of employment among the least schooled. This diagnose should become particularly evident once one takes into account that, in sharp contrast to established rules elsewhere, a significantly higher wage floor is in effect for those with lower secondary schooling. Abolition of this legally guaranteed premium over the minimum wage as well as more moderation in minimum wage adjustments are thus highly recommended.

Employment and the Social Economy. EU Funding Opportunities for Developing Human Resources

The paper examines the role of EU cohesion policy in the field of human resources development and improving conditions for employment. The main objective of the analysis is to present a comprehensive picture about funding opportunities in connection with financing the activities of organisations of the social economy. As a background, the study stresses that the success of the European integration process depends to a great extent on the strength of economic and social cohesion between EU member states and regions. In order to create conditions for sustainable and balanced growth with social inclusion, there is a need to enhance the competitiveness of less developed regions combating the difficulties of structural change, and to improve their development prospects. To achieve this aim, one of the most important fields is to improve human resources. The paper points out, that EU cohesion policy has a crucial role in reducing disparities. After a general introduction to the EU level regional policy funding, the study focuses on the activities supported by the European Social Fund (ESF). The next part of the study deals with the possible types of the social economy projects and problems of self-financing. The author emphasises that social innovation emerges where State and markets fail to deliver for society (theory of non-profit/third sector) but not just to fix or replace them. The author concludes that these projects require state subsidies (official grants) at the beginning, but at the same time they can generate income. In this respect they follow same economic goals as other market actors, however, the crucial difference is that their main goal is not to make high profits for the owners. In the last part, as a concrete case study, the paper concentrates on the priorities of the Hungarian development plan in relation to social renewal. The author explains the priorities and fields of interventions of the social renewal programme. Finally, the chapter deals with the recent changes in the Hungarian employment policy and related measures supported by the European Social Fund. The chapter concludes that several employment programmes, projects for the development of social economy and programmes assisting the spreading of voluntariness and the training of volunteers have been launched with the co-financing of ESF.

Szervezeti karriergondozás a nők előmenetelének szolgálatában: Sikeres európai uniós és hazai megoldások (Organizational career development in the career chance of women: successful European and Hungarian solutions)

A szerző tanulmányában a női karrierpálya és a szervezeti karriergondozás sajátosságait mutatja be. A női munkaerő sajátos munkaerő. Sajátosságait a társadalmi munkamegosztásban elfoglalt helye, szerepe, az ebből is táplálkozó férfiakétól eltérő személyisége, motivációja, habitusa, munkahellyel és munkakörrel kapcsolatos elvárásai alkotják. A hatékony emberierőforrás-menedzsment célja, hogy a rendelkezésre álló munkaerő-potenciált, kompetenciatárat minél jobban kihasználja. Ezért hasznosítja a sokszínűségből fakadó szinergiahatást, és számol a különböző alkalmazotti rétegek eltérő adottságaival. _____________________ The career needs of women demands special requirements towards organizational career development which covers the whole process of the human resource management. It is necessary to take attention to the elimination of all forms of discrimination in the organization, to develop an objective selection process based on competences, to eliminate barriers of advancement, to contact and inform women during the paid child-care period, to provide new ways to balance career and family, to extend the mentor system, to aid the preparation of individual career plans, to extend the different forms of flexible employment, to eliminate the wage and income differences. In Hungary the lack of women-friendly social environment and organizational culture prevent the development of diversity management, the fulfilling of the special mission and tasks of female career development. These circumstances waste the human resources in social and organizational level, too. It results the insufficient utilization of the competences of skilled workforce, especially that of women.

Munkavásárlás vagy dolgozóbérlés? Elmélkedés a munkaviszony közgazdasági értelmezéséről. = Purchase of work or renting of workers?

Munkaszolgáltatások adásvételeként értelmezendő-e a munkaviszony vagy dolgozók bérléseként? A közgazdaság-tudomány álláspontja következetlen: jellemzően dolgozóbérlésnek deklarálja, ugyanakkor ideálisan munkaszolgáltatások adásvételeként gondolja el. Az írás érvelése szerint e következetlenség vélhető oka az abból fakadó szaktudományi dilemma, hogy a tömeges dolgozóbérlés színtereként értelmezett munkaerőpiac versenyzői egyensúlya elvi lehetetlenség. _______ Should the employment relationship be interpreted as a form of purchase of labour services or as one of renting workers? Economics typically portrays it as the latter, but idealizes it as the former. This apparent inconsistency can presumably be attributed to the dilemma arising from the theoretical incompatibility of the core economic concept of competitive equilibrium and the reality of mass renting of people in the labour market.

Hogyan bonthatók le a látható és láthatatlan falak? – Kooperatív kutatás a megváltozott munkaképességűek foglalkoztatásával kapcsolatos mentális gátak lebontásáról (How to break down the visible and unvisible walls? – A cooperative research about the breaking down of mental barriers of the employment of disabled people)

A szerzők tanulmányukban egy kooperatív kutatási projekt eredményeit mutatják be, melyet emberierőforrás- menedzsment szakos master hallgatókkal folytattak megváltozott munkaképességűek foglalkoztatásával kapcsolatban. Magyarországon rendkívül magas a munkanélküliség a fogyatékkal élők körében, és a szerzők úgy vélik, hogy a HR-szakértőknek kulcsfontosságú szerepük van abban, hogy a foglalkoztatási korlátokat fenntartják-e, vagy változtatnak a jelenlegi helyzeten. A kritikai emberierőforrás-fejlesztés és a kritikai pedagógia hagyományait követve kutatásuk kettős célt tűzött ki. Céljuk volt egyrészt a jövő HRszakembereinek megváltozott munkaképességűek foglalkoztatásával kapcsolatos mentális mintázatainak, attitűdjeinek és hiedelmeinek feltárása, amelyek az elnyomás, diszkrimináció vagy kizsákmányolás gyökerei lehetnek. Másrészt pedig a kooperatív kutatás alkalmazásával a hallgatók emancipációját szándékoztak előmozdítani, továbbá az üzleti felsőoktatást uraló pozitivista filozófiát és értékrendszert kívánták kihívás elé állítani, s ily módon segíteni egy kritikusabb világnézet kibontakozását. ________ In this paper we present the results of a cooperative inquiry research project undertaken with Master students specialized in Human Resource Management on the employment of disabled people. Unemployment among people with disabilities is very high in Hungary and HR professionals have a key role in maintaining or reducing employment barriers and modifying the present situation. Following the tradition of critical Human Resource Development and critical pedagogy, the aim of the research project was twofold. First, we aimed to reveal the mental patterns, attitudes and beliefs of future HR professionals to the employment of people with disabilities, which might become roots causes of domination, discrimination or exploitation. Secondly, through applying cooperative inquiry, researchers aimed to emancipate students and challenge the positivist philosophy and value system which usually dominate business education and thereby engender a more critical worldview.

Gender, Work and Employment in Ten Candidate Countries of Central and Eastern Europe. Final Report. Country: Hungary

The Hungarian media shows very contradictory pictures of women today: Successful career women enjoying material well-being is one picture, while the careful mother not working outside the home, keeping together the family is another one. Between these two contradictory poles there are almost no other female actors in the media. Life produces something different. In spite of the fact that there was a big loss of jobs in 1990s, and women’s activity rate decreased while the unemployment rate increased compared to before the 1990s, woman with duel roles are still accepted and common. The first female task is looking after the family and the second one is working outside the home and earning money. In many cases there is a third role: studying in distant or evening courses. In the next chapters we go deeper into this topic. We analyse the different aspects of female labour market positions, and show some relevant characteristics of governmental parental benefits and childcare support, and examine how the new pension system effects women. We also have a quick look at trade unions and show their lack of activity around gender issues. In the labour market analysis of the position of women we use labour force surveys, institution-based labour statistics, and unemployment registers. The Appendix 1 contains short descriptions of these data sources.