Gail Pacheco

Culture, participative decision making and job satisfaction

This study explores the impact of culture on participatory decision making (PDM) and job satisfaction (JS) using data obtained from the European Values Study (EVS). We parameterise two different cultural variables using principal components analysis: first a continuum based on survival versus self-expression values and second a continuum based on traditional versus secular-rational values. Application of ordered logistic regression to Likert scales of PDM and JS suggests that greater self-expression in the survival versus self-expression variable enhances both PDM and JS; and more traditional values in the traditional versus secular-rational continuum have the same effect.

INTERGENERATIONAL WELFARE PARTICIPATION IN NEW ZEALAND

New Zealand panel data, which provide extensive information on the benefit histories of parents and their children, are used to estimate an intergenerational correlation coefficient in social welfare dependency. Recent estimation techniques for addressing issues of measurement error are applied to this analysis. The long-term benefit histories of parents and instrumental variable techniques provide useful lower and upper-bound estimates of the true intergenerational correlation. Our results suggest that the true correlation coefficient between the welfare participation of parents and their offspring is somewhere between one-third and two-thirds, but probably much closer to the lower limit in this range. Approximately one-quarter of this effect appears to operate through the lower educational attainment of children reared in families receiving social welfare benefits.

Is temporary employment a cause or consequence of poor mental health? A panel data analysis

Mental health status has an association with labour market outcomes. If people in temporary employment have poorer mental health than those in permanent employment then it is consistent with two mutually inclusive possibilities: temporary employment generates adverse mental health effects and/or individuals with poorer mental health select into temporary from permanent employment. We apply regression analyses to longitudinal data corresponding to about 50,000 observations across 8000 individuals between 1991 and 2008 drawn from the British Household Panel Survey. We find that permanent employees who will be in temporary employment in the future have poorer mental health than those who never become temporarily employed. We also reveal that this relationship is mediated by greater job dissatisfaction. Overall, these results suggest that permanent workers with poor mental health appear to select into temporary employment thus signalling that prior cross section studies may overestimate the influence of employment type on mental health.

Political participation and life satisfaction: a cross‐European analysis

Purpose - The purpose of this paper is to model the link between political participation and life satisfaction whilst correcting for the endogenous nature of the relationship; explore the impact of different strengths of political participation and aim to uncover if the relationship displays different patterns by gender. Design/methodology/approach - The data originate from the 2006/2007 European Social Survey. The analysis spanned across a pooled data set for 20 European countries. Three alternative empirical frameworks were trialled: an ordered probit regression, a linear regression model and a two-step, simultaneous treatment effect model to address endogeneity concerns. Findings - Following the correction for endogeneity via two-step, simultaneous treatment regressions, political participation – and specifically strong political engagement – displays a robust, statistically significant, strong and positive impact on life satisfaction. It was deduced that actual political participation, and not merely the right to participate in the political process, is a source of procedural utility. Research limitations/implications - The cross-sectional nature of the data imposes design limitations to examining trends and changes over time. It follows that the analysis cannot rely on fixed-effect estimations to control for time-invariant factors. Originality/value - Once the results are corrected for endogeneity, the empirical results reveal that the effect of actual political participation on life satisfaction not only matters, but also as the strength of political engagement grows it matters even more. Findings hold true even when a multitude of socio-demographic characteristics are controlled for. These are important results for researchers and policy makers who are concerned about the happiness of people in democratic societies.

Estimating Employment Impacts with Binding Minimum Wage Constraints

This article examines the impact of rising minimum wages on employment in New Zealand over the time period 1986–2004. Detailed wage data from Statistics New Zealand allows the construction of predicted probabilities for each individual in the sample being affected by a rising minimum wage, and hence finding the wage floor binding. These probabilities are then interacted with the real minimum wage level in the employment regressions to ensure analysis is restricted to the individuals most at risk when the minimum wage is raised. Comparing results before and after using these binding constraints in the regressions reveal significant negative employment effects of a higher minimum wage.

Assessing the Possible Antipoverty Effects of Recent Rises in Age‐Specific Minimum Wages in New Zealand

Real minimum wages increased by nearly 33% for adults and 123% for teenagers in New Zealand between 1999 and 2008. Where fewer than 2% of workers were being paid a minimum wage at the outset of this sample period, now more than 8% of adult workers and 60% of teenage workers are receiving hourly earnings close to the minimum wage. These policy changes provide a unique opportunity to estimate the effects of the minimum wage on the characteristics of these workers and their location across the income distribution. We provide some evidence on the likely consequences of these rising minimum wages on the poverty rate in New Zealand. Although minimum wage workers are more likely to live in the poorest households, they are relatively widely dispersed throughout the income distribution. This is particularly true of teenage minimum wage workers. Furthermore, low-income households often do not contain any working members. We estimate that a 10% increase in minimum wages, even without any offsetting reduction in earnings due to a loss in employment or hours of work, would lower the relative poverty rate by less than one-tenth of a percentage point.

Impact of the Minimum Wage on Expected Profits

Abstract This paper investigates the impact of a significant reform to the youth minimum wage in New Zealand in 2001, on the expectations of low wage employers’ profits. In March 2001, the eligibility for adult minimum wage rates was lowered from 20 to 18 years while the youth minimum wage for 16–17 year olds was also increased from 60 to 70% of the adult minimum wage. We construct a descriptive profile of minimum wage workers in New Zealand and their industry membership. We find that most minimum wage workers in New Zealand predominantly work in the four industry sectors; (1) Retail, (2) Textile and apparel, (3) Accommodation, cafes and restaurants, and (4) Agriculture, forestry, and fishing. Next using an event study methodology we examine the economic impact of the substantial increase in youth minimum wage rates on employers in industries with high concentrations of minimum wage workers. Surprisingly, all conclusions point to there being an insignificant impact on profit expectations for low wage employers by investors.

Mental and physical health: re-assessing the relationship with employment propensity

There is significant research demonstrating the labour market disadvantage experienced by the disabled community. Yet, relationships between wider ill-health concepts and employment are poorly investigated. This article presents an empirical investigation into the impacts of poor mental and physical health on the propensity to be employed. The results indicate that activity-limiting physical health and accomplishment-limiting mental health issues significantly affect the propensity to be employed. Further investigations reveal the significance of an interacted variable that captures the multiplicative effect of both physical and mental health, illustrating that the combined effect of both health domains can be more influential than separate pathways. Additional empirical analysis highlights gender and ethnicity divides. It is also found that mental health is mostly exogenous to employment propensity. This research provides evidence that mental and physical health related issues can lead to economic exclusion.

Job satisfaction: how crucial is participative decision making?

Purpose – The purpose of this paper is to empirically examine the role of perceived ability to participate in decision making in the workplace, with respect to job satisfaction. Design/methodology/approach – Data from the fourth wave of the European Value Survey, is utilised, and a bivariate probit model is employed to account for unobserved heterogeneity. Findings – Empirical analysis comparing univariate and bivariate probit models reveals that the results from the former are negatively biased; potentially indicating that prior research may have underestimated the impact of participative decision making (PDM) on job satisfaction. Additionally, it appears clear that the magnitude of the marginal effects for both socio-demographic and work characteristics do not differ when comparing workers with above and below average participation. More importantly, the authors find a substantial negative marginal effect of below average participation on job satisfaction (close to three times the magnitude of the next ...

Moving through the political participation hierarchy: A focus on personal values

This study empirically explores the determinants of political participation. Using data from the European Social Survey, we investigate the relationship between political participation and personal values, using the Schwartz (1992) values inventory. A political participation hierarchy is theorized, and activities are categorized into four levels of participation (none, weak, medium and strong), based on the cost of participating and how unconventional the activity is. Empirical analysis points to individuals who are more open to change and more self-transcendent, being more likely to participate. Sub-sample analysis, contrasting East and West Europe, suggests that the role for personal values is more subdued in the East, with respect to moving individuals from not participating to at least voting. Furthermore, the use of a generalized ordered logit model in this study illustrates the complex nature of many of the determinants of political participation. In particular, we find that the influence of the majority of individual characteristics is not monotonic in nature, as you move up through the political participation hierarchy. These findings are important for researchers and policy-makers who may be interested in understanding determinants of and/or enhancing the level of political participation in an economy.