Individual Choice and Risk: The Case of Higher Education

The expansion of higher education raises the risk environment for school-leavers as more occupations become partially graduate with the result that occupational signals are fuzzy. This makes the educational decision more difficult and more risky, especially with more of the cost of higher education being transferred to the individual. After a discussion of the nature of risk, derived from Beck, and of the role of government policy and of economics in obscuring this, the analysis uses simple quantitative techniques, based on British Labour Force Survey data, to demonstrate the increased fuzziness of graduate work. It is also shown that a rising proportion of graduates receive only average pay, thus raising the risks associated with educational investments even further

Equal pay as a moving target: International perspectives on forty-years of addressing the gender pay gap

This paper provides an overview of the key factors impacting upon the gender pay gap in the UK, Europe and Australia. Forty years after the implementation of the first equal pay legislation, the pay gap remains a key aspect of the inequalities women face in the labour market. While the overall pay gap has tended to fall in many countries over the past forty years, it has not closed; in some countries it has been stubbornly resistant, or has even widened. In reviewing the collection of papers that make up this special issue we identify four broad themes with which to group the contributions and draw out the explanations for diverse trends: theoretical and conceptual debates; legal developments and their impacts; wage setting institutions and changing employer demands; and newly emerging pay inequalities between and within educational and ethnic groups. Across the four themes we underline how the trends in the gender pay gap capture the dynamism of inequalities, as the market power of different groups and stakeholders changes over times. Three key dimensions emerge from the papers to provide a framework for future research and policy discourse: the relationship between litigation and bargaining strategies; the interaction between wage-setting institutions and new organisational practices; and the increasing and range of diversity or equality strands competing for equal treatment. We conclude that progress towards closing the gender pay gap will not be easy, will require a collective effort of various actors, and will not be quick

Educational Homogamy Lowers the Odds of Reproductive Failure

Assortative mating based on education is a common phenomenon. We investigated whether it affected parameters of reproductive performance such as childlessness, offspring number and age at first marriage. On the basis of the US census from 1980 (n = 670,631 married US couples), we find that the proportion of childless individuals is usually minimal in women married to a husband of the same educational level. This holds particularly true in the highest and the lowest educated women. Educational homogamy is also associated with a lower average age at first marriage. No obvious effect of educational homogamy on a woman's average offspring number is found, where mean offspring number generally increases both with decreasing woman's and decreasing husband's educational attainment. We conclude that educational homogamy reduces the likelihood of reproductive failure

The value of self-employment to ethnic minorities

It is sometimes argued that ethnic minorities have a cultural predisposition towards self-employment. However, this is generally not the preferred option for minority groups. We argue that ethnic minorities face a double risk in deciding between employment and self-employment. While their chances in employment leave them exposed to greater risk than the majority group, self-employment, which is inherently risky for all workers, adds to their general risk environment. We demonstrate a negative underpinning to their self-employed activity, showing that minority groups in the UK earn less in self-employment relative to the white British majority, work longer hours, and have lower job satisfaction. They also leave self-employment sooner to take up a job as an employee and use resources such as higher education to stand a better chance in employment

Job Loss Fears and (Extreme) Party Identification: First Evidence from Panel Data

There is a large body of literature analyzing the relationship between objective economic conditions and voting behavior, but there is very little evidence of how perceived economic insecurity impacts on political preferences. Using seventeen years of household panel data from the German Socio-Economic Panel, we examine whether job loss fears impact on individuals' party identification. Consistent with rational choice theory, we find strong and robust evidence that job loss fears foster affinity for parties at the far right-wing of the political spectrum. However, our empirical estimates do not suggest that job loss fears result in people withdrawing their support from political parties altogether