High semi-skilled occupations Low semi-skilled occupations Unskilled occupations 0 100 0 100 0 100 0 100 Source: ILO calculations based on SES database. Individuals organized in ascending order of hourly wages. Looking at ownership, workers in establishments with more than 50 per cent of public capital are less likely to be in the top 1 per cent – but are also less likely to be found in the bottom 10 per cent, suggesting that public ownership is associated with less wage dispersion, while wages are more polarized to the top and bottom of the distribution in privately owned firms. Finally, what jobs do workers hold and in what conditions do they work? On average, between 40 and 50 per cent of those in the top 1 per cent are either CEOs or corporate managers. The others are mainly the most highly skilled workers. But it is important to note that highly skilled workers are found right across the upper half of the distribution. At the other end of the wage distribution, we find
46 Global Wage Report 2016/17 mostly low-skilled but also many medium-skilled workers. It is also worth noting the high turnover among low-paid workers: almost half of the lowest-paid 10 per cent of workers have one year or less of tenure, and three-quarters have four years or less, compared to about 40 per cent of workers with mid-level wages. Part- time and temporary workers are also over-represented at the bottom end of the wage distribution. Another striking pattern that emerges from figure 30 is that the attributes and characteristics of those in the top decile are very similar – sometimes identical – to those of the top 1 per cent. Yet, as we saw earlier, the top 1 per cent earn much more than those in the 91st–99th centiles. Clearly, the personal attributes, labour market endowments or workplace characteristics shown in the figure cannot by themselves explain these differences in wages. 9.3 How the wage distribution varies for workers with various characteristics in emerging economies Roughly similar patterns regarding the relationship of wages to gender, education, occupation and economic sector can be found in emerging economies, as shown in figure 31, though with some major variations across an illustrative sample of countries. Looking at gender, the proportion of women in India in the bottom two deciles is similar to that in Europe (about 60 per cent), but drops precipitously thereafter, and in the upper half of the distribution women represent no more than 10–15 per cent of wage earners. In the Russian Federation, women make up about 70 per cent of workers in lower deciles and this share shrinks to about 40 per cent in the upper deciles. In Argentina, what is striking is the much lower share of women in the top 1 per cent than in the top 10 per cent. There is a similar, but less steep, decline within the top 10 per cent in South Africa. In terms of education, the upper deciles include a higher share of university graduates than lower deciles in all the countries sampled, but this pattern is par- ticularly noticeable in South Africa and Argentina. In the Russian Federation,
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- Fall '17
- Kotler & Keller
- International Labour Organization