Slovak Women Wage Structure: Does Education Matter?

Main Article Content

Viera Pavličková
Ivana Kuzmišinová

Abstract

The aim of the article is to analyze changes in the returns to education for women between 2005 and 2009 in the Slovak Republic. A Mincer equation is estimated along the entire wage distribution using quantile and OLS regressions. Data used for the analysis are individual data from harmonized EU SILC statistical survey. The results indicate tree points. Firstly, education affects women's earnings positively. The return to an additional year of schooling is close to 5 %. Secondly, returns to education for women did not change significantly from 2005 to 2009. Thirdly, the influence of education on the women´s earnings is more significant than of work experience.

Article Details

Section
Articles

References

[1] Bird, E., Schwarze, J., and Wagner, G. 1994. “Wage Effects of the Move towards Free Markets in East Germany”, Industrial and Labor Relations Review, 47 (3), 390-400.
[2] Filer, R., Jurajda, Š., and Plánovský, J. 1999. “Education and Wages in the Czech and Slovak Republics during Transition”, Labour Economics 6 (4), 581-593.
[3] Flanagan, R.J. 1995. “Wage Structure in the Transition of the Czech Economy”. IMF Working Paper 95/36.
[4] Heckman, J. J., Lochner, L. J., and Todd, P. E. 2003. “Fifty Years of Mincer Earnings Regressions”. IZA Discussion Paper no. 775.
[5] Halpern, L., Körösi, G. 1997. “Labour Market Characteristics and Profitability (Econometrics Analysis of Hungarian Firms, 1986-1995)”. The William Davidson Institute Working Paper No. 41.
[6] Chase, R.S. 1998. “Markets for Communist Human Capital: Returns to Education and Experience in Post-Communist Czech Republic and Slovakia”, Industrial and Labor Relations Review, 51 (3), 401-423.
[7] Jones, D.C., and Ilayperuma, K., 1994. “Wage Determination under Plan and Early Transition: Evidence from Bulgaria”. Working Paper No. 94/7, Department of Economics, Hamilton College.
[8] Koenker, R. 2006. Quantile regression in R: a vignette. [online]. 20. May 2006. [cit. 2011-04-13]. Accessible from: .
[9] Koenker, R., Bassett, G. W. 1978. „Regression Quantiles”, Econometrica, 1978, 46 (1), 33-50.
[10] Koenker, R., and Hallock, K. F. 2001. “Quantile Regression”, Journal of Economic Perspectives, 2001, 15(4), 143-156.
[11] Krueger, A. B., and J. S. Pischke 1995. “A Comparative Analysis of East and West German Labor Markets: Before and After Unification. In Freeman, R.B., and F. Katz, eds., Diferences and Changes in Wage Structures, Chicago: The University of Chicago Press.
[12] Lubyová, M., Sabirianova, K. Z. 2001. “Returns to human capital under economic transformation: The cases of Russia and Slovakia”. Ekonomický časopis. 49 (4), 630-662.
[13] Mincer, J. 1958. “Investment in Human Capital and Personal Income Distribution”. Journal of Political Economy, 66(4):281-302.
[14] Mincer, J. 1974. “Schooling, Experience, and Earnings”, New York: NBER Press
[15] Orazem, P. F., Vodopivec, M. 1997. “Unemployment in Eastern Europe, Value of Human Capital in Transition to Market: Evidence from Slovenia”. In Papers and Proceedings of the Eleventh Annual Congress of the European Economic Association, European Economic Review, 41, 893-903.
[16] Rutkowski, J. 1996. “High Skills Pay off: The Changing Wage Structure During Economic Transition in Poland”. Economics of Transition, 4 (1), 89-112.
[17] Rutkowski, J. 1997. “Low Wage Employment in Transitional Economies of Central and Eastern Europe”. MOST 7, 105-130.
[18] Tansel, A. 2008. “Changing Returns to Education for Men and Women in a Developing Country: Turkey”, 1994, 2002-2005. Paper presented at the ESPE 2008 conference, June 18-21, 2008, in London, UK and at the ECOMOD 2008 conference, July 2-4, 2008, in Berlin, Germany.
[19] Vecernik, J. 2001. “Earnings disparities in the CR: Evidence from the nineties and a cross-national comparison.” Czech Journal of Economics and Finance (Finance a uver) 51 (9), 450-471.
[20] Yu, K., Lu, Z., Sander, J. 2003. “Quantile Regression: Applications and Current Research Areas”, The Statistician, 2003, 52(3), 331–350.