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Wage inequalities in Romania under successive adjustments in minimum wage levels

Author

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  • Mădălina Ecaterina POPESCU

    (National Scientific Research Institute for Labour and Social Protection, Romania The Bucharest University of Economic Studies, Romania)

  • Eva MILITARU

    (National Scientific Research Institute for Labour and Social Protection, Romania)

Abstract

In this paper we aim to identify some of the most relevant wage determinants observable at micro level and try to explain wage inequalities through the use of Mincer equations. The case of Romania is discussed for the year 2014. Because of data availability issues, the methodological framework relied on ordered logit models. Moreover, because of the two successive increases in the minimum wage levels, the paper analyses the changes occurring quarterly during Q1 2014 – Q4 2014 upon the individuals odds of moving forward to a higher decile of the wage distribution. Both social-demographic and economic characteristics are investigated.

Suggested Citation

  • Mădălina Ecaterina POPESCU & Eva MILITARU, 2017. "Wage inequalities in Romania under successive adjustments in minimum wage levels," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 213-220, Summer.
    • Handle: RePEc:agr:journl:v:xxiv:y:2017:i:2(611):p:213-220
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    References listed on IDEAS

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    1. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281-281.
    2. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, March.
    4. Moshe Buchinsky, 2001. "Quantile regression with sample selection: Estimating women's return to education in the U.S," Empirical Economics, Springer, vol. 26(1), pages 87-113.
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    Cited by:

    1. Madalina Ecaterina Popescu & Eva Militaru, 2017. "Education and Wage Inequalities under a Counterfactual Scenario of Minimum Wage," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 13(6), pages 267-277, DECEMBER.
    2. Eva Militaru & Madalina Ecaterina Popescu & Amalia Cristescu & Maria Denisa Vasilescu, 2019. "Assessing Minimum Wage Policy Implications upon Income Inequalities. The Case of Romania," Sustainability, MDPI, vol. 11(9), pages 1-20, May.
    3. Marinela Istrate & Raluca Horea-Serban & Ionel Muntele, 2019. "Young Romanians’ Transition from School to Work in a Path Dependence Context," Sustainability, MDPI, vol. 11(5), pages 1-21, February.

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