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The Part-Time/Full-Time Wage Gap In Central And Eastern Europe: The Case Of Estonia

  • Kerly Krillo
  • Jaan Masso

Unlike Western countries, there are no studies focusing on the fulltime/part-time wage gap in Central and Eastern Europe despite high wage inequalities observable in many of these countries. The focus of this paper is the incidence and reasons for the part-time wage gap in Estonia, a small Eastern European catch up economy. We use Estonian Labour Force Survey data for 1997–2007, and the part-time wage gap is decomposed using the Heckman selection model and Oaxaca-Blinder wage decompositions. The results for females indicate that the part-time premium observable is unexplained with the controls used. For males, the full-time raw premium exists, but it is to a large extent captured by explanatory variables. For both genders, the labour market situation is remarkably better for voluntary part-timers. The probable explanations for this are the generally low wage levels, the cyclical behaviour of wage gaps, black income and unobserved heterogeneity of employees and firms.

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Paper provided by Faculty of Economics and Business Administration, University of Tartu (Estonia) in its series University of Tartu - Faculty of Economics and Business Administration Working Paper Series with number 65.

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Length: 65 pages
Date of creation: 2010
Date of revision:
Handle: RePEc:mtk:febawb:65
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  1. Daniel Aaronson & Eric French, 2004. "The Effect of Part-Time Work on Wages: Evidence from the Social Security Rules," Journal of Labor Economics, University of Chicago Press, vol. 22(2), pages 329-352, April.
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  4. Hirsch, Barry, 2004. "Why Do Part-Time Workers Earn Less? The Role of Worker and Job Skills," IZA Discussion Papers 1261, Institute for the Study of Labor (IZA).
  5. Leping, Kristian-Olari & Toomet, Ott, 2008. "Emerging ethnic wage gap: Estonia during political and economic transition," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 599-619, December.
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  7. Manning, Alan & Petrongolo, Barbara, 2007. "The Part-Time Pay Penalty for Women in Britain," CEPR Discussion Papers 6058, C.E.P.R. Discussion Papers.
  8. John F. Ermisch & Robert E. Wright, 1993. "Wage Offers and Full-Time and Part-Time Employment by British Women," Journal of Human Resources, University of Wisconsin Press, vol. 28(1), pages 111-133.
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  15. Jelena Popova & Olga Rastrigina & Ija Trapeznikova, 2003. "Part-time Employment and Underemployment in the Latvian Labour Market," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 3(2), pages 42-58, July.
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  17. Inés Hardoy & P�l Schøne, 2006. "The Part-Time Wage Gap in Norway: How Large is It "Really"?," British Journal of Industrial Relations, London School of Economics, vol. 44(2), pages 263-282, 06.
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  19. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
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