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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. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  2. Alan Manning & Helen Robinson, 2004. "Something in the way she moves: a fresh look at an old gap," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 169-188, April.
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  4. Kenneth A. Kriz & Jaanika Meriküll & Alari Paulus & Karsten Staehr, 2007. "Why Do Individuals Evade Payroll And Income Taxation In Estonia?," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 49, Faculty of Economics and Business Administration, University of Tartu (Estonia).
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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.
  18. Jaan Masso & Kerly Krillo, 2010. "Estonia, Latvia and Lithuania: Minimum Wages in a Context of Migration and Labour Shortages," Chapters, in: The Minimum Wage Revisited in the Enlarged EU, chapter 4 Edward Elgar.
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  21. repec:ese:iserwp:2000-11 is not listed on IDEAS
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