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Explaining Wage Inequality in Telecommunications Services: Customer Segmentation, Human Resource Practices, and Union Decline

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  • Rosemary Batt

Abstract

This study examines factors related to within-occupation wage inequality among service and sales workers in the telecommunications industry. The author draws on a 1998 survey of a nationally representative sample of 354 service and sales centers in the industry to examine the importance of management practices and union institutions in shaping wage variation. The results strongly indicate that business strategies of customer segmentation and human resource practices explain variation in wages over and above that explained by the human capital of the work force. In addition, despite extensive deregulation and de-unionization of the industry, the union wage premium is 22%.

Suggested Citation

  • Rosemary Batt, 2001. "Explaining Wage Inequality in Telecommunications Services: Customer Segmentation, Human Resource Practices, and Union Decline," ILR Review, Cornell University, ILR School, vol. 54(2A), pages 425-449, March.
    • Handle: RePEc:sae:ilrrev:v:54:y:2001:i:2a:p:425-449
    DOI: 10.1177/001979390105400223
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    References listed on IDEAS

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    Cited by:

    1. Claudia WEINKOPF, 2009. "Job quality in call centres in Germany," International Labour Review, International Labour Organization, vol. 148(4), pages 395-411, December.
    2. Danielle D. van Jaarsveld & Yoshio Yanadori, 2011. "Compensation Management in Outsourced Service Organizations and Its Implications for Quit Rates, Absenteeism and Workforce Performance: Evidence from Canadian Call Centres," British Journal of Industrial Relations, London School of Economics, vol. 49(Supplemen), pages 1-26, June.
    3. Peter Skott & Frederick Guy, 2005. "Power-Biased Technological Change and the Rise in Earnings Inequality," UMASS Amherst Economics Working Papers 2005-17, University of Massachusetts Amherst, Department of Economics.
    4. Frederick Guy & Peter Skott, 2008. "Information and Communications Technologies, Coordination and Control, and the Distribution of Income," Journal of Income Distribution, Ad libros publications inc., vol. 17(3-4), pages 71-92, September.
    5. Bauer, Thomas K. & Bender, Stefan, 2001. "Flexible Work Systems and the Structure of Wages: Evidence from Matched Employer-Employee Data," IZA Discussion Papers 353, Institute of Labor Economics (IZA).
    6. Rosemary Batt & Hiroatsu Nohara & Hyunji Kwon, 2010. "Employer Strategies and Wages in New Service Activities: A Comparison of Co‐ordinated and Liberal Market Economies," British Journal of Industrial Relations, London School of Economics, vol. 48(2), pages 400-435, June.

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