Academic Master

Economics

Effect of low-wages jobs on the Self-esteem of fresh graduates

Introduction

Education is the utmost requirement for personality grooming and economic benefits. Everybody who joins an undergraduate program in university has some dreams about his future. Students work hard to complete their degrees with high scores to achieve their dreams.

In Pakistan, the number of educated people at the graduate level is quite high, but according to that number, employment is limited. This causes job dissatisfaction and also abolishes the relationship with the co-workers. (Farooq S., et. al., 2008)

This study aimed to explore the effect of low-wage jobs on the self-esteem of fresh graduates in terms of satisfaction, hope, productivity, and well-being using a constructivist grounded theory approach (Charmaz, 2006; 2014).

Literature review:

The findings of the study conducted by Lee Y. and Sabharwal M. (2014) suggested that increased income cannot cover the loss in satisfaction in jobs from lesser education–job match in the non-profit sector and public sector as much as it covers in the for-profit division.

Job satisfaction is related to the personality and salary package of the employees. It can be improved by taking care of employees’ personalities and salary packages. (Fesharaki G.M et.al., 2013)

A study concluded that job-related self-efficacy has a major subsidiary effect on income and subsidiary effects on job satisfaction through self-efficacy and career commitment. (Hirschi A. et.al., 2015)

Generally, the evidence advocates that it is suitable to consider the cost of prospective job losses from an upper lowest salary contrary to the remunerations of salary raises for other workers. (Neumark D., 2015)

Wages, training, and incentives have a progressive bond with career performance; however, wages have a stronger connection with career performance than training and incentives. (Idrees Z. et.al., 2015) Salary level disturbs workers’ self-esteem, which then, disturbs the employees’ performance. (Gardner G. D. et.al., 2004)

A study indicates that the funding system does not affect the employment rate. However, it seems to have amplified the possibility of part-time employees earning full-time pay. (Huttunen K. et. al., 2010)

Range-frequency theory is a model created individualistically inside psychology that expects that well-being is secured partially from the individual’s classified rank of a salary within an evaluation set. It is concluded that confirmation of rank-dependence is important for employees’ salary satisfaction. (Brown D.A Gordon et.al., 2005)

From the above-mentioned literature, studies related to the first job experience of fresh graduates in terms of their self-esteem are needed.

Statement of problem

The topic of study will explore the effect of low wages on the self-esteem of fresh graduates who passed out of universities.

Purpose of study

The purpose of this study is to discover the self-esteem of fresh graduates in Lahore at low wages jobs in terms of:

  • Exploring the effect of low-wage jobs on the productivity of freshly graduated middle-class job holders.
  • Discover the effect on the well-being of freshly graduated middle-class job holders of low-wage jobs.
  • To understand the influence of low-income jobs on the level of satisfaction of freshly graduated middle-class jobians.
  • To explore freshly graduated middle-class job holders’ level of hope due to the low-wage jobs.

Personal context:

I did this research as I was interested in this topic. Actually, I did a job in educational institutions and faced issues related to low wages and their effect on performance, satisfaction, well-being, and hope. I felt very low in self-esteem when I got my first job at 14000 after I graduated from a private institute, and my working hours were from 9 am to 5 pm. After 4 to 5 months, I started feeling low self-esteem, and my performance started to affect me. That’s why I was also interested in this phenomenon in other people and did this research. But whatever I faced was not all shown here. My theory proved different from the mindset that I brought to have interviews.

Significance of the study:

This study will provide help to employers to develop significant measures to help maintain the level of self-esteem in fresh graduates with low wages. It will also provide guidelines for educators to groom fresh graduates to cope with the environment ahead.

Research Question:

Explore the effect of low-wage jobs on the self-esteem of freshly graduated middle-class job holders.

Method

Research design:

In this study qualitative approach is used.

Sample:

I collected data from local private schools using a purposive sampling technique. I took four female teachers with an age range of 20- 25 years.

Inclusion/ exclusion criteria:

I took four unmarried female teachers who had freshly graduated from the middle class; they got their first job after 4 to 5 months of working and wages ranging from 8000 to 12000 per month.

Measure:

A semi-structured interview was conducted to collect the data.

Ethics:

I obtained verbal consent from the heads of the institutions and from each participant to take and record their interviews.

Procedure:

I interviewed the participants individually and asked for their permission to tape-record their interviews for data transcription.

Data analysis:

I will apply grounded theory to analyze collected data as no work has been done in Pakistan in this context, and I want to develop a theory that will be helpful in the employer’s context and working satisfaction.

Reliability:

For the reliability check, I went back to the participants and asked them to validate my transcription of interviews.

Conformability has been done to support the findings of the research.

Implications:

This study will be helpful for both the fresh graduates and the employers as it will provide evidence about the level of self-esteem of fresh graduates. This study will be of great use in every field as every year, thousands of fresh graduates are passed out from universities with a strong desire for a good job related to earnings.

This study will provide the employer the basis to improve their organizations’ standards that will be up to the thoughts of the fresh graduates as well this study will also be a guideline for the training of fresh graduates by the institutes from which they will get their degrees.

Results:

In this study, there are nine selective codes. The first code is job specifications, which comprise job settings and administrative expertise. Job settings include the employees’ experience of the job’s environment.

For example: “I enjoyed this.”

Administrative expertise refers to having good public relations and managerial skills. For example, “ease in many public relations.”

The second code is the Source of knowledge. It consisted of one axial code i-e. Improvement in knowledge means learning is part of the job. For instance, “knowledge is increasing.”

The third selective code is personality. It includes the employee’s outlook. For example, “her main quality is her look.”

Teaching skills is the fourth code, which covers working way and vocal expertise. Working way refers to performance level, and vocal expertise refers to communication expertise.

For instance, “a sweet voice,”

“maintain students concentration,”

“then her work”

The enthusiastic approach is the fifth code, which includes stress-free life, enjoyment, and increased performance levels. A stress-free life means not having the stress of workload. For example, “No clear effect on me, my life, and my activities.” Enjoyable showed enjoy working at every level, for instance, “enjoy working.” Increased performance level is, for example, “performance is positive”.

The sixth code is Rules and regulations. It contained enhancement in conduct, i.e., “feel improvement in conduct,” and responsibility means “feel the responsibility of teaching.”

The seventh code is the future plans, which contain job transfers and talk about job changes. For instance, “I have not planned anything about this job because I move on next” and “Will drop teaching.”

Career plans are the eighth code, which comprises job choice. For example, “I am waiting for a good opportunity” and “ahead in banking.” But while answering one participant said, “Yes I will continue this job now and in the longer run”

The last code is financial prospects, which include salary expectations. For instance, “I want to earn more” and “salary package is low.”

Open code Axial code Selective code
Job experience evaluation job setting Job specifications
Workplace specification
Managerial skills enhancement Administrative expertise
Improvement in PR
sociable
Enhancement in learning Improvement in Knowledge Source of knowledge
Learning
Working skills improvement
Self-presentation Outlook personality
Have a high confidence level
Striking personality
Working abilities Working way Teaching skills
Coaching style
Concentration maintaining skills
Workload management skills
Students Management skills
Worthy coach
Talking style Vocal expertise
Verbal skills
Smooth life Charming life Enthusiastic approach
enjoyment enjoyable
Appreciate working with joy
Helpful instructions Increased Performance level
Flourishing performance level
disciplined Enhancement in attitude Rules and regulations
Become Authoritarian
Mannered
Fix routine
Liability feeling responsibility
Field shift Job transferal Future plans
Job stability
Promotion
Field selection Job choice Career plans
Planned prospects
Decision point
Low wage Salary requirements Financial prospects
Strong earning

Discussion

This particular research was conducted to develop insight into job performance-related factors, i.e., the level of productivity, hope, well-being, and satisfaction in fresh graduates’ first jobs.

Firstly, the level of productivity is increasing regardless of the low wages paid at the first job to fresh graduates. Most of them know about the low wage level and had more expectations during graduation, but on their productivity level, there is no effect reported.

Secondly, their level of hope is low, and they are not hopeful about their future in the same job because of salary and specific subject of their graduation. It is reported that the first job is just to get experience, and it is just a ladder to move up. It is not the expected and final goal.

Thirdly, well-being is reported as at a good level because the first job experience is the learning tenure, and all reported it as a good and healthy learning experience.

Lastly, the satisfaction level is reported as low because fresh graduates do not completely fulfill their requirements. All reported that they will not continue this very job as they want to have a job with higher salaries and according to their subject specialties’ which are minimum in school teaching.

So, the theory of self-esteem grounded here suggests that low-wage jobs for fresh graduates have a negative effect on their hope and satisfaction, whereas their productivity and well-being have a positive effect on them.

These findings negate the findings of Gardner G. D. et.al.(2004) that Salary level disturbs workers’ self-esteem, which then, disturbs the employees’ performance.

The findings of this research have a supportive relationship in the context of job satisfaction related to salary package and personality of the workers. It can be maintained by caring for employees’ personalities and salary packages. (Fesharaki G.M et.al., 2013)

Idrees Z. et.al.(2015), concluded that wages, training and incentive have a progressive bond with career performance however wages have a stronger connection with career performance than training and incentive which supported this new emerging theory of self-esteem.

The new grounded theory of self-esteem negates the confirmation of rank-dependence in employees’ salary satisfaction. (Brown D.A Gordon et.al., 2005)

Conclusion:

This newly emerged theory has viewed self-esteem in a broader way than other research and theories. In previous theories, these four variables have been studied separately, but no one has found their effect on the participants as a whole. Secondly, no one has studied the effect of these four variables collectively on the fresh graduate’s experience related to their first job and previous expectations. It will be helpful to get an idea of how fresh graduates feel about their first job experience and their level of self-esteem.

Limitations

This study has time limitations. It has sample limitations that are only applicable to fresh graduates.

References

Farooq, S., Ahmad, U. and Ali, R. (2008). Education, unemployment and job satisfaction. Pakistan journal of commerce and social sciences, 1. www.jespk.net/publications/10.pdf

Lee, Y. and Sabharwal, M. (2014). Education–Job Match, Salary, and Job Satisfaction Across the Public,, Non-Profit, and For-Profit Sectors: Survey of recent college graduates. Journal public management review. Vol.18.

Fesharaki M.G., Aghamiri Z., Mohamadian M.,  Habibi M., Anvari S. and Esfandyar i AzadMarzabad.(2013). Effect of Manager Leadership Behavior and Demographical Factors on Job Satisfaction of Military Healthcare Personnel. Journal of military medicine. Vol. 15.

Neumark D. (2015|). The Effects of Minimum Wages on Employment. FRBSF Economic Letter. Vol.37.

Gordon D.A Brown, Gardner J., Oswald A. and Qian J. (2005). Does Wage Rank Affect Employees’ Wellbeing? The Institute for the Study of Labor discussion papers.

Gardner G. D, Dyne L.V and Pierce J. L.(2004) The effects of pay level on organization-based self-esteem and performance: A field study. Journal of Occupational and Organizational Psychology, 77, 307-322.

Huttunen K. , Pirttilä J. and Uusitalo R.(2010). The employment effects of low-wage subsides. The Institute for the Study of Labor discussion papers.

Idrees Z, Xinping X, Shafi K, Hua L. and Nazeer A. (2015) Effect of Salary, Training and Motivation on Job Performance of Employees. American Journal of Business, Economics and Management. Vol. 3, No. 2, pp. 55-58.

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