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Who has a better chance of getting higher salaries among creative R&D employees?

Author

Listed:
  • Heili Hein
  • Aaro Hazak
  • Kadri Männasoo

Abstract

It is a known fact from previous studies that on average, women earn less than men. Although the size of the gender pay gap differs from country to country, this statement is true almost everywhere. This brief study aims to contribute to the discussion on the gender pay gap by examining the earnings of a specific demographic – Estonian creative R&D employees. Not surprisingly, we discovered that gender is an important and statistically significant driver of salary levels with women being less likely than men to receive higher levels of salaries. In addition, we find that age is a further statistically significant determinant of salary levels. The effect of age on earnings forms an inverse-U-shape with younger and older employees having a lower likelihood of earning higher salaries compared to their middle-aged colleagues.

Suggested Citation

  • Heili Hein & Aaro Hazak & Kadri Männasoo, 2017. "Who has a better chance of getting higher salaries among creative R&D employees?," TUT Economic Research Series 39, Department of Finance and Economics, Tallinn University of Technology.
    • Handle: RePEc:ttu:tuteco:39
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    References listed on IDEAS

    as
    1. Aaro Hazak, 2017. "Non-creative tasks: a turn off for creative R&D employees," TUT Economic Research Series 28, Department of Finance and Economics, Tallinn University of Technology.
    2. Deborah J. Anderson & Melissa Binder & Kate Krause, 2002. "The Motherhood Wage Penalty: Which Mothers Pay It and Why?," American Economic Review, American Economic Association, vol. 92(2), pages 354-358, May.
    3. Marit Rebane & Aaro Hazak & Kadri Männasoo, 2017. "Women need flexible work, but men get it – issues in R&D work efficiency," TUT Economic Research Series 30, Department of Finance and Economics, Tallinn University of Technology.
    4. Markus Gangl & Andrea Ziefle, 2009. "Motherhood, labor force behavior, and women’s careers: An empirical assessment of the wage penalty for motherhood in britain, germany, and the united states," Demography, Springer;Population Association of America (PAA), vol. 46(2), pages 341-369, May.
    5. Raul Ruubel & Aaro Hazak, 2017. "Does anyone want to work 5 days per week and 8 hours per day? Issues in R&D work efficiency," TUT Economic Research Series 31, Department of Finance and Economics, Tallinn University of Technology.
    6. Magnus Carlsson & Dan-Olof Rooth, 2016. "Employer Attitudes, the Marginal Employer, and the Ethnic Wage Gap," ILR Review, Cornell University, ILR School, vol. 69(1), pages 227-252, January.
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    8. van der Velde, Lucas & Tyrowicz, Joanna & Siwinska, Joanna, 2015. "Language and (the estimates of) the gender wage gap," Economics Letters, Elsevier, vol. 136(C), pages 165-170.
    9. Marit Rebane & Heili Hein & Aaro Hazak, 2017. "Does flexible work make R&D employees happier?," TUT Economic Research Series 23, Department of Finance and Economics, Tallinn University of Technology.
    10. Aaro Hazak, 2017. "Better not to ask your employees to come to work? Issues in R&D work efficiency," TUT Economic Research Series 32, Department of Finance and Economics, Tallinn University of Technology.
    11. Frédéric Palomino & Eloïc Peyrache, 2010. "Psychological bias and gender wage gap," Post-Print hal-00586063, HAL.
    12. Kadri Männasoo & Heili Hein, 2017. "Are R&D companies credit-constrained? Credit frictions during and post-crisis," TUT Economic Research Series 29, Department of Finance and Economics, Tallinn University of Technology.
    13. Heili Hein & Kadri Männasoo, 2017. "Are business obstacles different for R&D companies?," TUT Economic Research Series 33, Department of Finance and Economics, Tallinn University of Technology.
    14. Sten Anspal, 2015. "Gender wage gap in Estonia: a non-parametric decomposition," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 15(1), pages 1-16.
    15. Kadri Männasoo & Heili Hein, 2017. "Learning from abroad: Export versus foreign ownership," TUT Economic Research Series 36, Department of Finance and Economics, Tallinn University of Technology.
    16. Thomas Buser & Muriel Niederle & Hessel Oosterbeek, 2014. "Gender, Competitiveness, and Career Choices," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 129(3), pages 1409-1447.
    17. Marko Virkebau & Aaro Hazak & Kadri Männasoo, 2017. "More flexibility, better results? Issues in R&D work efficiency," TUT Economic Research Series 24, Department of Finance and Economics, Tallinn University of Technology.
    18. Luís Santos-Pinto, 2012. "Labor Market Signaling and Self-Confidence: Wage Compression and the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 30(4), pages 873-914.
    19. Evren Ors & Frédéric Palomino & Eloïc Peyrache, 2013. "Performance Gender Gap: Does Competition Matter?," Journal of Labor Economics, University of Chicago Press, vol. 31(3), pages 443-499.
    20. Viive Pille & Viiu Tuulik & Aaro Hazak, 2017. "Sitting at a desk at work makes creative employees tired," TUT Economic Research Series 34, Department of Finance and Economics, Tallinn University of Technology.
    21. Erve Sõõru & Aaro Hazak & Marit Rebane, 2017. "Long working days and falling asleep at work – issues in R&D work efficiency," TUT Economic Research Series 38, Department of Finance and Economics, Tallinn University of Technology.
    22. Aaro Hazak, 2017. "Fixed-term contracts – a turnoff for R&D employees," TUT Economic Research Series 35, Department of Finance and Economics, Tallinn University of Technology.
    23. Kristin Kleinjans, 2008. "Do Gender Differences in Preferences for Competition Matter for Occupational Expectations?," Economics Working Papers 2008-09, Department of Economics and Business Economics, Aarhus University.
    24. Kadri Männasoo & Heili Hein, 2017. "Capital investments and financing structure: Are R&D companies different?," TUT Economic Research Series 26, Department of Finance and Economics, Tallinn University of Technology.
    25. Erve Sõõru & Heili Hein & Aaro Hazak, 2017. "Why force owls to start work early? The work schedules of R&D employees and sleep," TUT Economic Research Series 25, Department of Finance and Economics, Tallinn University of Technology.
    26. Palomino, Frédéric & Peyrache, Eloïc-Anil, 2010. "Psychological bias and gender wage gap," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 563-573, December.
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    Citations

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    Cited by:

    1. Erve Sõõru & Aaro Hazak & Marit Rebane, 2017. "Long working days and falling asleep at work – issues in R&D work efficiency," TUT Economic Research Series 38, Department of Finance and Economics, Tallinn University of Technology.
    2. Marit Rebane & Heili Hein & Aaro Hazak, 2017. "Does flexible work make R&D employees happier?," TUT Economic Research Series 23, Department of Finance and Economics, Tallinn University of Technology.
    3. Aaro Hazak, 2017. "Fixed-term contracts – a turnoff for R&D employees," TUT Economic Research Series 35, Department of Finance and Economics, Tallinn University of Technology.
    4. Kadri Männasoo & Heili Hein, 2017. "Are R&D companies credit-constrained? Credit frictions during and post-crisis," TUT Economic Research Series 29, Department of Finance and Economics, Tallinn University of Technology.
    5. Kadri Männasoo & Heili Hein, 2017. "Learning from abroad: Export versus foreign ownership," TUT Economic Research Series 36, Department of Finance and Economics, Tallinn University of Technology.
    6. Viive Pille & Viiu Tuulik & Aaro Hazak, 2017. "Sitting at a desk at work makes creative employees tired," TUT Economic Research Series 34, Department of Finance and Economics, Tallinn University of Technology.
    7. Marko Virkebau & Aaro Hazak & Kadri Männasoo, 2017. "Using flexitime – for better work or a better life? Issues in R&D work efficiency," TUT Economic Research Series 27, Department of Finance and Economics, Tallinn University of Technology.
    8. Heili Hein & Kadri Männasoo, 2017. "Are business obstacles different for R&D companies?," TUT Economic Research Series 33, Department of Finance and Economics, Tallinn University of Technology.
    9. Kadri Männasoo & Heili Hein, 2017. "Capital investments and financing structure: Are R&D companies different?," TUT Economic Research Series 26, Department of Finance and Economics, Tallinn University of Technology.
    10. Aaro Hazak, 2017. "Non-creative tasks: a turn off for creative R&D employees," TUT Economic Research Series 28, Department of Finance and Economics, Tallinn University of Technology.
    11. Aaro Hazak, 2017. "Better not to ask your employees to come to work? Issues in R&D work efficiency," TUT Economic Research Series 32, Department of Finance and Economics, Tallinn University of Technology.
    12. Raul Ruubel & Aaro Hazak, 2017. "Does anyone want to work 5 days per week and 8 hours per day? Issues in R&D work efficiency," TUT Economic Research Series 31, Department of Finance and Economics, Tallinn University of Technology.
    13. Marko Virkebau & Aaro Hazak & Kadri Männasoo, 2017. "More flexibility, better results? Issues in R&D work efficiency," TUT Economic Research Series 24, Department of Finance and Economics, Tallinn University of Technology.
    14. Marit Rebane & Aaro Hazak & Kadri Männasoo, 2017. "Women need flexible work, but men get it – issues in R&D work efficiency," TUT Economic Research Series 30, Department of Finance and Economics, Tallinn University of Technology.
    15. Erve Sõõru & Heili Hein & Aaro Hazak, 2017. "Why force owls to start work early? The work schedules of R&D employees and sleep," TUT Economic Research Series 25, Department of Finance and Economics, Tallinn University of Technology.

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