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The Gender Pay Gap in Informal Employment in Poland

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  • Anna Ruzik
  • Magdalena Rokicka
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    Abstract

    This paper addresses the issue of the gender pay gap in the formal and informal labour markets in Poland. The authors verify the hypothesis of the existence of a gender pay gap in informal work and compare this gap with the one observed in the formal (registered) labour market. Various analyses of available data show that size and characteristics of gender pay gap differ depending on the level of earnings. The inequality of earnings among unregistered women and men is more pronounced at the bottom tail of the earnings distribution. In the case of formal employees, inequality at the top of the distribution tends to be larger, confirming the existence of a ‘glass ceiling’. The decomposition of the gender pay gap for selected quintiles indicates that it would be even higher if women had men’s characteristics. A possible explanation of the results is the lack of minimum wage regulations in the informal market and the greater flexibility in agreement on wages in the higher quantiles.

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    File URL: http://www.case-research.eu/upload/publikacja_plik/30664403_CNSA_406.pdf
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    Bibliographic Info

    Paper provided by CASE-Center for Social and Economic Research in its series CASE Network Studies and Analyses with number 406.

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    Length: 48 Pages
    Date of creation: 2010
    Date of revision:
    Handle: RePEc:sec:cnstan:0406

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    Keywords: gender pay gap; informal employment; quantile regression;

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    1. Dominik H. Enste & Friedrich Schneider, 2000. "Shadow Economies: Size, Causes, and Consequences," Journal of Economic Literature, American Economic Association, vol. 38(1), pages 77-114, March.
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    7. Francine D. Blau, 1996. "The Gender Pay Gap," NBER Working Papers 5664, National Bureau of Economic Research, Inc.
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    10. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
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    13. Albrecht, James & van Vuuren, Aico & Vroman, Susan, 2004. "Decomposing the Gender Wage Gap in the Netherlands with Sample Selection Adjustments," IZA Discussion Papers 1400, Institute for the Study of Labor (IZA).
    14. Albrecht, James & Björklund, Anders & Vroman, Susan, 2001. "Is There a Glass Ceiling in Sweden?," IZA Discussion Papers 282, Institute for the Study of Labor (IZA).
    15. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2007. "The effects of competition and equal treatment laws on gender wage differentials," Economic Policy, CEPR & CES & MSH, vol. 22, pages 235-287, 04.
    16. Dimova, Ralitza & Gang, Ira N. & Landon-Lane, John, 2005. "The Informal Sector During Crisis and Transition," Working Paper Series RP2005/18, World Institute for Development Economic Research (UNU-WIDER).
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