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The determinants of labor market earnings in a small Caribbean island:the case of Dominica

Author

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  • Barry Reilly
  • Annelle Bellony

    (University of Sussex, UK)

Abstract

This paper uses the Labor Force Survey (LFS) from 1999 to investigate the labor market earnings determination process in the small Eastern Caribbean island of Dominica. Given the interval coded nature of the earnings data reported for the LFS, an interval regression model estimated by maximum likelihood techniques is used. A key empirical finding is that the Dominica labor market places a relatively high valuation on formally acquired post-primary human capital assets. We also find that the ceteris paribus public sector pay premium is relatively large and suggests public sector workers are securing a high rent through employment in this sector. A gender pay gap of approximately 20 percent is detected and there is also evidence of a sizeable ethnic pay disadvantage for male members of the island’s indigenous population.

Suggested Citation

  • Barry Reilly & Annelle Bellony, 2009. "The determinants of labor market earnings in a small Caribbean island:the case of Dominica," Journal of Developing Areas, Tennessee State University, College of Business, vol. 43(1), pages 65-85, September.
    • Handle: RePEc:jda:journl:vol.43:year:2009:issue1:pp:65-85
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    More about this item

    Keywords

    Human Capital; Earnings;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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