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Determinants of Wages in Poland

Dorota Witkowska 

Szkoła Główna Gospodarstwa Wiejskiego (SGGW), Nowoursynowska 166, Warszawa 02-787, Poland

Abstract

There are many factors influencing wages that are either connected with the individual attributes of employees or describe the general situation at the labor market and characterize the particular place (– institution or enterprise) of employment. The former may be the subject of potential wage disparities. Inequalities at the labor market concern different aspects and social relations such as [Cain 1986, p. 693]: gender, sexual orientation, age, race, disabilities, religion, etc. Labor market discrimination by gender, race, and ethnicity is the word-wide problem and estimation of these types of discriminations has become routine [Neuman & Oaxaca 2003].

“Equal pay for equal work” is one of the fundamental principles of the European Union. However, the Structure of Earnings Survey (SES) reports that in 2006 in all 27 EU countries the gender wage gap (GPG) was 18.4% on average, while in Poland it was 7.4%. In fact among 27 European Union member states situation at the labor market essentially differs since the smallest GPG is observed in Italy – 4.4%, and the biggest in Estonia – 30.3% [Witkowska & Matuszewska-Janica 2012].

The aim of our research is to identify determinants that affect earnings in Poland in selected periods (i.e. years from 2001 to 2011), and to find out if wages obtained by men and women depend on the same factors. Investigation is provided applying ordered multinomial logit models, that are estimated by Maximum Likelihood method [Boes & Winkelmann 2009, Gruszczyński 2010] employing individual data from the Polish Labor Force Survey (PLFS).

In our research we construct models for all respondents and models estimated separately for men and women that simplifies gender wage gap analysis. Such approach was proposed by Juhn, Murphy and Pierce (1991), and is often used in gender disparities analysis [Grajek 2001, Blau & Kahn 2006, Newell & Reilly 2001].

Explanatory variables, that are selected arbitrarily for the model construction, are often used in the research concerning wages, for instance [Newell & Socha 2007]. These variables describe respondents’ characteristics and employees’ firm characteristics.

 

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Related papers

Presentation: Oral at Current Economic and Social Topics CEST2013, Symosium on Gender Disparities, by Dorota Witkowska
See On-line Journal of Current Economic and Social Topics CEST2013

Submitted: 2013-05-16 09:22
Revised:   2014-01-22 11:53