Wage differences in the hospitality sector

Abstract

h i g h l i g h t sWe examine the origin of wage differences between hospitality and rest of sectors. Small differences in lower part of wage distribution but very relevant in upper part. Differences due only to a composition effect, in contrast with other low-wage sectors. Most qualified workers are penalized: endowments much less rewarded in hospitality. Low levels of wage inequality in hospitality explained by wage-setting mechanisms. Available online xxx JEL codes:The article examines the origin of differences between wages in the hospitality sector and the rest of the private sector in Spain. The evidence obtained for the 2002e2010 period shows that the wage disadvantage of hospitality presents an increasing profile along the wage distribution so that it is particularly relevant for those earning comparatively higher salaries. In contrast with other low-wage sectors, lower wages in hospitality are explained almost entirely by the specific characteristics of its workers and jobs (particularly their lower educational qualifications and their higher presence in low-skilled occupations), and not by the existence of lower rewards to those characteristics. Highly qualified individuals are however an exception since they suffer a wage penalty for working in the sector. Furthermore the analysis shows that pay inequality is substantially lower in the hospitality sector and that it is not due to the relative characteristics of its workers and jobs.

Tourism jobs in demand: Where the best contracts and high salaries go at online offers

“…The groups of professionals and clerical support staff deserve a comment: not only are the offers of these groups reduced, but also, both in terms of contracts and salaries are in a situation closer to cooks and waiters than to managers. These results show similarities with the results published by Casado-Diaz and Simon (2016) , but in their case it affected professionals and not managers. The tourism sector would treat managers as expected, but not professionals.…”

“…With regard to the latter, lower average salaries are observed in the tourism sector than in other sectors, these salaries are mainly attributed to the low level of formal education and the presence of low-skilled jobs in tourism ( Robinson et al, 2019 ). There are, however, lower internal inequality levels in the tourism sector due to the downward trend in salaries for even the most qualified individuals ( Casado-Diaz & Simon, 2016 ). It has been mentioned though, that some differences with respect to other sectors are due to segmentation elements ( Silva & Freire-Guimarães, 2017 ).…”

Differences in residents' attitudes towards tourism among mass tourism destinations

“…Because our main objective is to quantify gaps or differences and distinguish between explained (by the model) and unexplained differences, the OB decomposition is used. This decomposition is well known in labour and discrimination literature and has been applied in tourism by Casado‐Díaz and Simón (), Ferreira Freire Guimaraes and Silva (), Muñoz‐Bullón () and Santos and Varejao () in their analyses of gaps and discrimination in the labour market in tourism, for example the gap between male and female pay parity in the tourism industry. Raya () also used it to analyse the value and role of brand between tourism destinations.…”

Deregulation and institutional conversion in the Greek hotel industry: an employment relations model in transition

“…This literature suggests that hotels in both high‐end and medium‐level product markets traditionally rely on low‐skilled and casualised workers, who face poor and unpleasant working conditions, insecurity and low pay (Baum, ; Bernhardt et al, ; Lucas, ; Wood, ). Work intensification, limited job control, high work demands, and employee stress are increasingly reported due to the prevalent cost‐cutting strategies adopted by hotels, exacerbated by weak union presence, lack of multi‐employer agreements and violations of labour rights (Baum, ; Brown and Crossman, ; Casado‐Díaz and Simon, ; Vanselow et al, ; Warhurst et al, ). Work organisation has not changed much in recent years, with automation and investment in skills being limited, especially in certain occupations (such as cleaning) (Zampoukos and Ioannides, , 32).…”