IDEAS home Printed from https://ideas.repec.org/a/jes/journl/y2018v9p111-131.html
   My bibliography  Save this article

Determinants of earnings in Macedonia: assessing the difference between low-paid and highly-paid employees

Author

Listed:
  • Dimitar NIKOLOSKI

    (University “St. Kliment Ohridski”-Bitola, FYRO Macedonia)

  • Marjan ANGELESKI

    (University “St. Kliment Ohridski”-Bitola, FYRO Macedonia)

  • Slavica ROCHESKA

    (University “St. Kliment Ohridski”-Bitola, FYRO Macedonia)

Abstract

The problem of ‘low-pay’ as a relatively new social phenomenon in Europe has received considerable attention over the past 20 years. The analysis of the low-pay in low income countries, where the average earning is already low by international standards is more complex and represents a challenging task. The stylised facts show that earnings are not uniform across the population, but they vary according to a number of socio-economic and demographic characteristics. The aim of this paper is to assess the earning function of employed workers in Macedonia by paying attention to the difference between low-paid and highly-paid employees. For this purpose, we estimate Mincer type model that explains wage income as a function of education, experience and other employee- and job-specific characteristics. As a result, we come up with a clear picture of the earnings determinants and we formulate appropriate policy recommendations.

Suggested Citation

  • Dimitar NIKOLOSKI & Marjan ANGELESKI & Slavica ROCHESKA, 2018. "Determinants of earnings in Macedonia: assessing the difference between low-paid and highly-paid employees," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 9, pages 111-131, June.
    • Handle: RePEc:jes:journl:y:2018:v:9:p:111-131
    as

    Download full text from publisher

    File URL: http://ejes.uaic.ro/articles/EJES2018_0901_NIK.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Marjan Petreski & Nikica Mojsoska-Blazevski, 2017. "Overhaul of the social assistance system in Macedonia: Simulating the effects of introducing Guaranteed Minimum Income (GMI) scheme," Finance Think Policy Studies 2017-11, Finance Think - Economic Research and Policy Institute.
    2. Kenneth Smith, 2001. "Age/Earnings Profiles in Transition Economies: The Estonian Case," Post-Communist Economies, Taylor & Francis Journals, vol. 13(4), pages 485-503.
    3. Tilman Brück & Alexander M. Danzer & Alexander Muravyev & Natalia Weißhaar, 2007. "Determinants of Poverty during Transition: Household Survey Evidence from Ukraine," Discussion Papers of DIW Berlin 748, DIW Berlin, German Institute for Economic Research.
    4. Uma RANI & Patrick BELSER, 2012. "Low pay among wage earners and the self-employed in India," International Labour Review, International Labour Organization, vol. 151(3), pages 221-242, September.
    5. Morné OOSTHUIZEN, 2012. "Low pay in South Africa," International Labour Review, International Labour Organization, vol. 151(3), pages 173-192, September.
    6. Marjan Petreski & Nikica Mojsoska-Blazevski & Marcelo Bergolo, 2017. "Labor-Market Scars When Youth Unemployment is Extremely High: Evidence from Macedonia," Eastern European Economics, Taylor & Francis Journals, vol. 55(2), pages 168-196, March.
    7. Polachek, Solomon W., 2008. "Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.
    8. Harry Anthony Patrinos, 2016. "Estimating the return to schooling using the Mincer equation," IZA World of Labor, Institute of Labor Economics (IZA), pages 278-278, July.
    9. Sangheon LEE & Kristen SOBECK, 2012. "Low-wage work: A global perspective," International Labour Review, International Labour Organization, vol. 151(3), pages 141-155, September.
    10. Petreski, Marjan. & Mojsoska-Blazevski, Nikica., 2015. "The gender and motherhood wage gap in the Former Yugoslav Republic of Macedonia : an econometric analysis," ILO Working Papers 994895293402676, International Labour Organization.
    11. Lehmann, Hartmut, 2010. "Macedonia’s Accession to the EU and the Labor Market: What Can Be Learned from the New Member States?," IZA Policy Papers 14, Institute of Labor Economics (IZA).
    12. Marjan Petreski & Nikica Mojsoska Blazevski, 2017. "Overhaul of the social assistance system in Macedonia: Simulating the effects of introducing Guaranteed Minimum Income (GMI) scheme," Finance Think Policy Studies 2017-11/11, Finance Think - Economic Research and Policy Institute.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yasser Razak Hussain & Pranab Mukhopadhyay, 2023. "How Much do Education, Experience, and Social Networks Impact Earnings in India? A Panel Data Analysis Disaggregated by Class, Gender, Caste and Religion," SAGE Open, , vol. 13(4), pages 21582440231, December.
    2. W.A. Senathissa, 2023. "The effect of schooling, experiences, and firm size on earnings in Sri Lanka (Incorporated with the major emphasis of Mincer’s Earnings Function)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(6), pages 561-575, June.
    3. Bharatha Prabath Parakrama Badullahewage & Shohani Upeksha Badullahewage, 2021. "Wage Difference Between Formal Sector and Informal Sector Jobs; With Special Reference to the Labour Market in Sri Lanka," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 7(3), pages 7-17, August.
    4. Sènakpon Fidèle A. Dedehouanou & Luca Tiberti & Hilaire G. Houeninvo & Djohodo Inès Monwanou, 2019. "Working while studying: Employment premium or penalty for youth in Benin?," Working Papers PMMA 2019-03, PEP-PMMA.
    5. Marjan Petreski & Tereza KÐ¾Ñ ovska, 2018. "Regulatory impact assessment of the changes in the Minimum Wage Law," Finance Think Policy Studies 2018-10/17, Finance Think - Economic Research and Policy Institute.
    6. Jean-Marc Fournier & Isabell Koske, 2012. "The determinants of earnings inequality: evidence from quantile regressions," OECD Journal: Economic Studies, OECD Publishing, vol. 2012(1), pages 7-36.
    7. Henderson, Daniel J. & Polachek, Solomon W. & Wang, Le, 2011. "Heterogeneity in schooling rates of return," Economics of Education Review, Elsevier, vol. 30(6), pages 1202-1214.
    8. Garloff, Alfred & Roth, Duncan, 2016. "Regional age structure and young workers' wages," IAB-Discussion Paper 201606, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    9. Maksim Yemelyanau, 2008. "Inequality in Belarus from 1995 to 2005," CERGE-EI Working Papers wp356, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    10. Laméris, Maite D. & Garretsen, Harry & Jong-A-Pin, Richard, 2020. "Political ideology and the intragenerational prospect of upward mobility," European Journal of Political Economy, Elsevier, vol. 62(C).
    11. Amrita Datta & Tanuka Endow & Balwant Singh Mehta, 2020. "Education, Caste and Women’s Work in India," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(2), pages 387-406, June.
    12. Amélie Barbier-Gauchard & Meixing Dai & Claire Mainguy & Jamel Saadaoui & Moïse Sidiropoulos & Isabelle Terraz & Jamel Trabelsi, 2021. "Towards a more resilient European Union after the COVID-19 crisis," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 11(2), pages 321-348, June.
    13. Marta Lachowska, 2013. "Employment Relations and Wages: What Can We Learn from Subjective Assessments?," Upjohn Working Papers 13-196, W.E. Upjohn Institute for Employment Research.
    14. Hartog, Joop & Raposo, Pedro, 2017. "Are starting wages reduced by an insurance premium for preventing wage decline? Testing the prediction of Harris and Holmstrom (1982)," Labour Economics, Elsevier, vol. 48(C), pages 105-119.
    15. Johannes Koettl & Olga Kupets & Anna Olefir & Indhira Santos, 2014. "In search of opportunities? The barriers to more efficient internal labor mobility in Ukraine," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-28, December.
    16. Kenneth Smith, 2007. "Determinants of Soviet Household Income," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(1), pages 3-24, June.
    17. Das, Sanchita Basu & Narayanan, Badri, 2022. "ASEAN Education Cooperation: An Assessment of the Education Divide and Measuring the Potential Impact of Its Elimination," ADBI Working Papers 1300, Asian Development Bank Institute.
    18. HORIE, Norio & IWASAKI, Ichiro & KUPETS, Olga & MA, Xinxin & MIZOBATA, Satoshi & SATOGAMI, Mihoko, 2023. "Wage Functions in China and Eastern Europe : A Large-Scale Comparative Meta Analysis," CEI Working Paper Series 2022-08, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    19. Yubilianto, 2020. "Return to education and financial value of investment in higher education in Indonesia," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-28, December.
    20. Bruna BRUNO & Damiano FIORILLO, 2016. "Voluntary Work And Wages," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 87(2), pages 175-202, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jes:journl:y:2018:v:9:p:111-131. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alupului Ciprian (email available below). General contact details of provider: https://edirc.repec.org/data/csjesro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.