Critical Reflection HR & IR Systems William Kwok  Enoch Ng  Ainsley Hart  Martina Nikic Axel Durand-Smet  Mahmoud Abu Hannoud

Table of Contents Introduction Discussion on the assigned article Common theme of the assigned articles Discussion on the additional articles Shared theme and scope Centralized Wage Bargaining Government Intervention / Partisanship Conclusion & Factbook Application

Introduction Questions to think about: 1. What are the factors that you think contribute to the income equality/inequality of the countries? The levels of wage inequality and its determinants is a fundamental component of HRM Importance of understanding the research structures, sampling, and measurement methodologies

Assigned Articles Article 1: Comparative Research in Human Resource Management: A Review and an Example by Brewster, C., Tregaskis O., Hegewisch, A. & Mayne L. (1996) Article 2: Wage-Setting Institutions and Pay Inequality in Advanced Industrial Societies by Michael Wallerstein (1999)

Common Theme of Articles Article 1 Provides a deep understanding of the importance of the research structures, sampling, and measurement methodologies Serves as the backbone and provides a comprehensive standard Article 2 Depicts the wage-setting determinants Gives us ideas of the dimensions and variables to focus on

Additional Articles Article 3: Economic Globalization, Domestic Politics, and Income Inequality in the Developed Countries: A Cross-National Study by Vincent Mahler (2004) Explains the impact of four 'domestic political' and three 'economic globalization' factors towards income inequality √ Extracted data from the Luxemburg Income Study √ Concludes that political factors are more significant determinants √ Limitation: Lack of comprehensive explanations on how each factor affect income inequality X

Additional Articles Article 4: Institutions, Partisanship, and Inequality in the LongRun by Scheve and Stasavage (2009) The political effect on income inequality is minimal, especially in the long run √ The decrease of income inequality had presented before collective bargaining was introduced √ This article provides a more precise and accurate test on the proposed factors √

Additional Articles Article 5 Has the national minimum wage reduced UK wage inequality? by Dickens and Manning (2004) Supports the previous article that government partisanships and collective centralization are not the major determinants of income inequality √ The effect of the national minimum wage established in the UK towards income inequality is minimal √ Demonstrates an empirical example from a developed country, which may provide support to the previous article to some extent √ Research was done in only one country X

Additional Articles Article 6 Diverging Developments in Wage Inequality: Which Institutions Matter? by Rebecca Oliver (2008) that the major determinant of wage inequality is whether the wage-bargaining practices in a country include the use of wage scale √ Concludes that the increase in the inequality of wage is less likely to occur √ Wage scale provides an insightful perspective to look at the factors that lead to wage inequality √

Shared Theme and Scope 1.Data analyzed & methodologies in regards to the determinants of wage inequality 2.Two Major Determinants of Wage Inequality Centralized Bargaining Government intervention

Mahler’s three reasons: More efficient Improve political position of workers Contributes to distributive justice Wallerstein’s explanations: Economical Political Ideological Centralized Wage Bargaining Positive relationship between centralization and egalitarian distribution of wage Mahler and Wallerstein’s explanations corresponding

Centralized Wage Bargaining Scheve DISAGREED with the previous findings! His study shows no evidence of a positive relationship between centralized bargaining and income equality Wage inequality is instead affected by another underlying economic force There is NOT a casual correlation

Government Intervention /Partisanship Spectrum of government intervention (degree) Left governments assumptions Empirical results Causal relationship? Example: National Minimum Wage Minimal effect on entire labor sector

Conclusion Limitations: appropriateness and compatibility of methodologies (Article 1) Centralized bargaining: a controversial matter What is the appropriate method of research?

Factbook Application Difference in level of wage bargaining between countries Degree of government intervention in wage setting of countries Poland (conservative liberalism ) vs Switzerland (democratic)