Wage differentials in eu transition economies (2009-2016): how large a penalty for females and informal employees?
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Date
2020
Authors
Adair, Philippe
Nezhyvenko, Oksana
Journal Title
Journal ISSN
Volume Title
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Abstract
The paper tackles the wage differentials issue upon a large sample of employees in eight EU
transition countries over 2009-2016 with respect to human capital theory vs. labour market
segmentation theory and according to gender. Using several measurement methods, the results
display a significant penalty in average real monthly wages for informal employees, which is always
higher for females; hence, informal female employees face a double penalty. In regard of individual
and job characteristics, earnings functions investigate the wage penalty for informality, which
declines respectively to 20 per cent and 12 per cent for males, and 27 per cent and 17 per cent for
female employees. Next, fixed effects model demonstrates that wage penalty reaches 23 per cent
for females and over 10 per cent for males. Last, according to the decomposition model, explained
variables (individual and job characteristics) account for two-thirds of the wage differentials, which
prove better explained on the demand side of firms and supports the segmentation theory.
Description
Keywords
Decomposition model, EU-SILC, informal employment, Mincer model, panel data, quantile regression, transition economy, wage differentials, article
Citation
Adair P. Wage differentials in eu transition economies (2009-2016): how large a penalty for females and informal employees? [electronic resourse] / Philippe Adair, Oksana Nezhyvenko // Proceedings of the 13th Economics & Finance Virtual Conference (Prague, 23-24 June 2020) / ed. by: Klara Cermakova, Simin Mozayeni, Eduard Hromada. - Prague : International Institute of Social and Economic Sciences ; International Society for Academic Studies, 2020. - P. 1-22.