The Age Pay Gap and Labour Market Heterogeneity: A New Empirical Approach Using Data for Italy

Töpfer, Marina

doi:10.1111/labr.12161

Cited by 4 publications

(4 citation statements)

References 40 publications

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“…Our productivity results are to a small extent in line with Börsch-Supan & Weiss (2016), Cataldi et al (2012), Dostiemailto, (2011), Göbel & Zwick (2012, Hellerstein & Neumark (2007) and Van Ours & Stoeldraijer (2011). The results of the productivity-wage gap are to some extent in line with the studies by Aubert & Crépon (2006), Töpfer (2020), Van Ours (2009 and Van Ours & Stoeldraijer (2011) and, but not in line with Cataldi et al (2012).…”

Section: The Effects Of the Key Regressorssupporting

confidence: 84%

“…In a recent study by Töpfer (2020), the difference in pay between elderly (55-64) and adult (34-54) workers along the wage distribution is examined using Italian microdata. Unlike Cataldi et al (2012), Töpfer (2020) finds no evidence of (substantial) overpayment of elder and underpayment of adult workers once one accounts for generally unobserved labour market.…”

Section: Previous Studiesmentioning

confidence: 99%

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The Relationship Between Firm Productivity, Wage Level and Employees’ Age: A Sectoral Perspective

Børing

2021

De Economist

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We examine how a firm’s productivity level, wage level and productivity–wage gap are related to the age composition of its employees. Panel data of Norwegian firms in the following three sectors are used: the manufacturing sector, the WRT (wholesale and retail trade, repair of motor vehicles and motorcycles) sector, and the PST (professional, scientific and technical activities) sector. Three hypotheses are formulated: a firm’s productivity level is negatively affected by its proportion of the oldest workers (H1), a firm’s wage level is negatively affected by its proportion of the youngest workers, and positively affected by its proportion of the oldest workers (H2), and a firm’s productivity–wage gap is positively affected by its proportion of the youngest workers, and negatively affected by its proportion of the oldest workers (H3). Based on GMM regression in first differences, the estimation results give some support for (a) the hypothesis H1 for the WRT sector, but no support for the manufacturing and PST sectors, (b) H2 for the manufacturing and PST sectors, but little support for the WRT sector, and (c) H3 for the PST sector, but no support for the manufacturing and WRT sectors. The GMM results show that a firm’s productivity–wage gap is positively affected by the proportion of the youngest age group in the PST sector, while there is a non-significant effect in the manufacturing and WRT sectors. The proportion of the oldest age group has a non-significant effect on this gap in each of the three sectors. The results indicate that there is no clear evidence of an age-related productivity–wage gap.

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Section: The Effects Of the Key Regressorssupporting

confidence: 84%

Section: Previous Studiesmentioning

confidence: 99%

The Relationship Between Firm Productivity, Wage Level and Employees’ Age: A Sectoral Perspective

Børing

2021

De Economist

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“…Finally, age can be considered a substitute for an individual's experience and usually has an inverted U-shaped form concerning salaries. Bowman et al (2017) use narrative interviews with older Australians to demonstrate how aging intersects with using different forms of capital valued within particular labor markets to influence older workers' “employability.” Using Italian microdata for the years 2005–2016, Töpfer (2020) finds that senior employees (55–64 years) earn significantly more than adult employees (34–54 years) along the entire wage distribution. However, controlling for individual heterogeneity and job and industry sorting reduces the gap at the median and top of the wage distribution to zero.…”

Section: Hollywood's Labor Marketmentioning

confidence: 99%

Mind the gap: an empirical analysis of pay discrimination in Hollywood

Kräft

Kaimann

Frick

2023

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Purpose This study aims to identify and explain a possible gender pay gap in the creative industry. By using the salary information of Hollywood actors, this paper restricts the analysis to a relatively homogenous group of workers. In addition, actors' human capital endowments and past performance can be measured precisely. The factors that impact the salaries of movie stars are likely to influence the pay of other high-wage employees, such as athletes and executives. Design/methodology/approach This paper uses a rich panel data set including 178 female and male actors in 973 movies released between 1980 and 2019. Using a random-effects model and the Blinder–Oaxaca decomposition approach, this paper distinguishes between a fraction of the gender pay gap that can be explained and another fraction that cannot be explained. Hence, only the unexplained residual typically obtained by estimating two standard Mincer-type earnings functions is due to discriminatory pay practices. Findings This study reveals a pay difference between female and male actors. Gender-specific representation in leading roles and systematic differences in performance measures can explain this pay difference. While female actors' underrepresentation in leading roles reflects consumer tastes and, therefore, reflects discriminatory attitudes, no evidence can be found for direct pay discrimination in Hollywood's movie business. Originality/value To the best of the authors’ knowledge, this is the first Hollywood study to relying on a rich panel data set that includes various measures of the human capital characteristics of the different individual actors. This paper's theoretical contribution lies in applying classic labor economics reasoning to explain pay determination in Hollywood's movie business.

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“…Research done by Töpfer (2019) claimed that an age pay gap was found and greatly discussed in Italy. The author talks about a positive correlation between the pay gap and age between adult and elderly workers.…”

Section: Age Disparity Shaping Pay Gapmentioning

confidence: 99%

The Significant Factors Influencing Individual’s Perceptions of Pay Gap

Kosasih,

Tamayo‑Verleene,

Novieningtyas

2023

ORCADEV

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Various studies have shown that there exist gender-related inequalities in employee compensation. Yet, individuals may also develop affective and behavioural outcomes based on their perceptions of whether they experience such inequalities or observe such inequalities (dis) favouring others. This paper seeks to examine the different factors that could be linked to individuals' pay gap perceptions. The study aims to analyze how demographic factors can significantly impact individuals' perceptions of the pay gap by looking at the relationship between the two variables, where the demographic factors are the independent variable and the perceptions become the dependent variable. The survey was made by adapting from two previous studies about gender discrimination. Hypotheses were tested by utilizing a hierarchical linear regression through SPSS with a sample size of 217 participants from 3 continents: Europe, Asia, and America. Findings showed that gender, age, marital status and equity sensitivity are significantly linked to pay gap perceptions. Specifically, the study found that individuals reported higher pay gap discrimination against their own gender and benefitting the opposite gender. The limitations of this study include its small sample size and cross-sectional design, which affects the generalizability of its findings. This research contributes to the literature on employee compensation, as it features some factors that are linked to individual pay gap perceptions. Theoretically, the paper suggests that self-serving bias and gender role theories potentially influence individuals’ wage and justice perceptions. The paper also provides insights that could help HR professionals design better compensation and communication practices.

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The Age Pay Gap and Labour Market Heterogeneity: A New Empirical Approach Using Data for Italy

Cited by 4 publications

References 40 publications

The Relationship Between Firm Productivity, Wage Level and Employees’ Age: A Sectoral Perspective

The Relationship Between Firm Productivity, Wage Level and Employees’ Age: A Sectoral Perspective

Mind the gap: an empirical analysis of pay discrimination in Hollywood

The Significant Factors Influencing Individual’s Perceptions of Pay Gap

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