IDEAS home Printed from https://ideas.repec.org/a/bla/indres/v62y2023i4p411-438.html
   My bibliography  Save this article

The employer perspective on wage law non‐compliance: State of the field and a framework for new understanding

Author

Listed:
  • Stephen Clibborn
  • Sally Hanna‐Osborne

Abstract

This article offers the first systematic review of empirical research addressing the question of why employers underpay their employees, from the perspective of employers themselves – a perspective largely missing from scholarly examination of wage law non‐compliance. We conducted a comprehensive search of the vast peer‐reviewed literature on the topic, identifying studies which collected and analyzed primary data from employers regarding why they breached wage laws. A review of these studies identified four broad types of explanation offered by employers relating to financial viability, perceived consequences of non‐compliance, ethical and normative rationalization, and the role of external actors. We propose a research agenda and theoretical framework based on the key empirical, methodological and theoretical gaps which remain in understanding why employers underpay their employees, and discuss how this agenda can inform policy interventions designed to ameliorate the problem.

Suggested Citation

  • Stephen Clibborn & Sally Hanna‐Osborne, 2023. "The employer perspective on wage law non‐compliance: State of the field and a framework for new understanding," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 62(4), pages 411-438, October.
    • Handle: RePEc:bla:indres:v:62:y:2023:i:4:p:411-438
    DOI: 10.1111/irel.12333
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/irel.12333
    Download Restriction: no
    File URL: https://libkey.io/10.1111/irel.12333?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Yaniv, Gideon, 1994. "Complaining about noncompliance with the minimum wage law," International Review of Law and Economics, Elsevier, vol. 14(3), pages 351-362, September.
    2. Chris F. Wright & William Brown, 2013. "The effectiveness of socially sustainable sourcing mechanisms: Assessing the prospects of a new form of joint regulation," Industrial Relations Journal, Wiley Blackwell, vol. 44(1), pages 20-37, January.
    3. Greg Distelhorst & Richard M. Locke & Timea Pal & Hiram Samel, 2015. "Production goes global, compliance stays local: Private regulation in the global electronics industry," Regulation & Governance, John Wiley & Sons, vol. 9(3), pages 224-242, September.
    4. Webb, Justin W. & Bruton, Garry D. & Tihanyi, Laszlo & Ireland, R. Duane, 2013. "Research on entrepreneurship in the informal economy: Framing a research agenda," Journal of Business Venturing, Elsevier, vol. 28(5), pages 598-614.
    5. Paul Edwards & Mark Gilman & Monder Ram & James Arrowsmith, 2002. "Public Policy, the Performance of Firms, and the 'Missing Middle': The Case of the Employment Regulations, and a Role for Local Business Networks," Policy Studies, Taylor & Francis Journals, vol. 23(1), pages 5-20.
    6. Rae Cooper & Bradon Ellem, 2008. "The Neoliberal State, Trade Unions and Collective Bargaining in Australia," British Journal of Industrial Relations, London School of Economics, vol. 46(3), pages 532-554, September.
    7. David WEIL, 2008. "A strategic approach to labour inspection," International Labour Review, International Labour Organization, vol. 147(4), pages 349-375, December.
    8. Richard Turner, 2014. "Occupational Stratification of Hispanics, Whites, and Blacks in Southern Rural Destinations: A Quantitative Analysis," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 33(5), pages 717-746, October.
    9. Søren C. Winter & Peter J. May, 2001. "Motivation for Compliance with Environmental Regulations," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(4), pages 675-698.
    10. Matthew Amengual, 2014. "Pathways to Enforcement: Labor Inspectors Leveraging Linkages with Society in Argentina," ILR Review, Cornell University, ILR School, vol. 67(1), pages 3-33, January.
    11. William Brown & Simon Deakin & David Nash & Sarah Oxenbridge, 2000. "The Employment Contract: From Collective Procedures to Individual Rights," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 611-629, December.
    12. Annette BERNHARDT & Siobhán McGRATH & James DeFILIPPIS, 2008. "The state of worker protections in the United States: Unregulated work in New York City," International Labour Review, International Labour Organization, vol. 147(2-3), pages 135-162, June.
    13. Brinn, Tony & Jones, Michael John & Pendlebury, Maurice, 2000. "Measuring research quality: peer review 1, citation indices 0," Omega, Elsevier, vol. 28(2), pages 237-239, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chris F. Wright & Colm McLaughlin, 2024. "Short‐term fix or remedy for market failure? Immigration policy as a distinct source of skills," Industrial Relations Journal, Wiley Blackwell, vol. 55(1), pages 3-19, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alex J. Wood, 2015. "Networks of injustice and worker mobilisation at Walmart," Industrial Relations Journal, Wiley Blackwell, vol. 46(4), pages 259-274, July.
    2. Hans de Bruijn & Martijn Groenleer & Theo van Ruijven, 2016. "The dynamics of doping: Lance Armstrong, the United States Anti‐Doping Agency and the regulatory governance of professional cycling," Regulation & Governance, John Wiley & Sons, vol. 10(3), pages 284-297, September.
    3. Stephen Clibborn & Chris F Wright, 2018. "Employer theft of temporary migrant workers’ wages in Australia: Why has the state failed to act?," The Economic and Labour Relations Review, , vol. 29(2), pages 207-227, June.
    4. Rita Almeida & Lucas Ronconi, 2016. "Labor Inspections in the Developing World: Stylized Facts from the Enterprise Survey," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 55(3), pages 468-489, July.
    5. Chikako Oka, 2016. "Improving Working Conditions in Garment Supply Chains: The Role of Unions in Cambodia," British Journal of Industrial Relations, London School of Economics, vol. 54(3), pages 647-672, September.
    6. Michael E. Cummings & Alan Gamlen, 2019. "Diaspora engagement institutions and venture investment activity in developing countries," Journal of International Business Policy, Palgrave Macmillan, vol. 2(4), pages 289-313, December.
    7. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    8. David Jancsics & Salvador Espinosa & Jonathan Carlos, 2023. "Organizational noncompliance: an interdisciplinary review of social and organizational factors," Management Review Quarterly, Springer, vol. 73(3), pages 1273-1301, September.
    9. Amanda Pyman & Peter Holland & Julian Teicher & Brian K. Cooper, 2010. "Industrial Relations Climate, Employee Voice and Managerial Attitudes to Unions: An Australian Study," British Journal of Industrial Relations, London School of Economics, vol. 48(2), pages 460-480, June.
    10. Viollaz, Mariana, 2016. "Enforcement of Labor Market Regulations: Heterogeneous Compliance and Adjustment across Gender," MPRA Paper 72000, University Library of Munich, Germany.
    11. Elert, Niklas & Henrekson, Magnus, 2017. "Entrepreneurship and Institutions: A Bidirectional Relationship," Working Paper Series 1153, Research Institute of Industrial Economics, revised 05 May 2017.
    12. Zhang, Zibin & Yang, Wenxin & Ye, Jianliang, 2021. "Why sulfur dioxide emissions decline significantly from coal-fired power plants in China? Evidence from the desulfurated electricity pricing premium program," Energy Policy, Elsevier, vol. 148(PB).
    13. Friedrich Schneider & Mangirdas Morkunas & Erika Quendler, 2021. "Measuring the Immeasurable: The Evolution of the Size of Informal Economy in the Agricultural Sector in the EU-15 up to 2019," CESifo Working Paper Series 8937, CESifo.
    14. Leibbrandt, Andreas & Lynham, John, 2018. "Does the allocation of property rights matter in the commons?," Journal of Environmental Economics and Management, Elsevier, vol. 89(C), pages 201-217.
    15. Alex Bryson & P Willman, 2007. "Union Organization in Great Britain," CEP Discussion Papers dp0774, Centre for Economic Performance, LSE.
    16. Colin C. Williams & Brunilda Kosta, 2019. "Evaluating Institutional Theories Of Informal Sector Entrepreneurship: Some Lessons From Albania," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 24(02), pages 1-17, June.
    17. Kaushal Mukherjee, 2016. "The Psychology of the Successful Entrepreneur," Post-Print hal-01484491, HAL.
    18. Jesse L. Reynolds & Edward A. Parson, 2020. "Nonstate governance of solar geoengineering research," Climatic Change, Springer, vol. 160(2), pages 323-342, May.
    19. Jeroen van der Heijden & Jitske de Jong, 2009. "Towards a Better Understanding of Building Regulation," Environment and Planning B, , vol. 36(6), pages 1038-1052, December.
    20. Janet Druker & Geoffrey White, 2013. "Employment relations on major construction projects: the London 2012 Olympic construction site," Industrial Relations Journal, Wiley Blackwell, vol. 44(5-6), pages 566-583, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:indres:v:62:y:2023:i:4:p:411-438. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0019-8676 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.