Wage Determination with Special Reference to Role in a Family

Issue: 2011/1

Lenka Filipová

VŠB – Technical University of Ostrava, Faculty of Economics, Sokolská třída 33, 701 21 Ostrava 1, lenka.filipova@vsb.cz

Zuzana Machová

VŠB – Technical University of Ostrava, Faculty of Economics, Sokolská třída 33, 701 21 Ostrava 1, zuzana.machova@vsb.cz

The paper has arisen as a part of the project dealing with the questions of measuring of wage determinants and wage discrimination on the basis of different subjective requirements of women and men on their wages. Using the ordered-response model (Ordered Probit), it analysed wage determination on the basis of Mincer’s Wage Regression including dummies for role in a family. The analysis was carried out with the total sample of respondents and subsequently separately for men and women. The data were gained from a questionnaire survey carried out in Ostrava city, Czech Republic. In general, the analysis did not prove previous conclusions of theories or empirical studies about prevailing influence of family characteristics on the wage rate. Nevertheless, it proved statistically significant differences in the wage determination between men and women, and showed that in the case of men, some family characteristics may have been important for determining the wages.

Pages: 
37–56
DOI: 10.2478/v10135-011-0006-y
JEL: J71, J31, J24
Keywords: Wage Discrimination, Wage Determinants, Role in a Family, Human capital
References: 

BOJE, T. P. (2001). Gender, Welfare State and the Market: Towards a New Division of Labour (Routledge Research in Gender and Society, 4). Routledge, London. ISBN: 0-203-99228-8.
ČSÚ. (2005). SLDB 2001. Retrieved from http://www.czso.cz/sldb/sldb2001.nsf/index.
DAVIS, S. J.; HALTIWANGER, J. (1996). Employre Size and the Wage Structure in the United States. Annale d´Economie et de Statistique 41/42, 323-368.
DICKENS, W., KATZ, L. (1987). Inter-industry Wage Differences and Industry Characteristics. In: LANG, K., et al. Unemployment and the Structure of Labor Market. Basil-Blackwell, Oxford.
DUDOVÁ, R. et al. (2007). Development of Labour Market and Private, Family and Partner Life. Sociological Studies 07(3). Sociological Institute AV ČR, Prague. 165 s.
DUSTMANN, CH.; SCHOENBERG, U. (2008). The Effect of Expansions in Maternity Leave. Coverage on Children’s Long-Term Outcomes. IZA Discussion Papers 3605. Institute for the Study of Labor (IZA).
EJRNAES, M.; KUNZE, A. (2004). Wage Dips and Drops Around First Birth. IZA Discussion Papers 1011. Institute for the Study of Labor (IZA).
FILER, R. K., JURAJDA, Š., PLÁNOVSKÝ, J. (1999). Returns to the Market: Valuing Human Capital in the Post-Transition Czech and Slovak Republic. CERGE-EI, Prague.
FLANAGAN, R. J. (1995). Wage Structures in the Transition of the Czech Republic. International Monetary Fund, IMF Staff Papers (4), 836-854.
FREEMAN, R. B.; MEDOFF, J. L. (1986). The Two Faces of Unionism. In: REYNOLDS, L. G.; MASTERS, S. H.; MOSER, C. H. Reading in Labor Economics and Labour Relations. Englewood Cliffs, Prentice Hall, N. J.
GOTTVALD, J. et al. (2002). Determinants of Individual Pay and Firms Pay Structures in the Czech and Slovak Republic. Technical University of Ostrava, Ostrava. ISBN 80-248-0150-7.
HAŠKOVÁ, H. et al. (2003). Equal Possibilities of Men and Women When Harmonizing Work and Family?. Sociological Institute AV ČR, Prague. ISBN 80-7330-048-6.
CHASE, R. S. (1998). Markets for Communist Human Capital: Returns from Education and Experience in the Czech Republic and Slovakia. Industrial and Labor Relation Review 3, 401-423. Cornell University.
JACOBSEN, J. (2007). The Economics of Gender. Blackwell publishing. ISBN: 978-1-4051-6182-4.
JURAJDA, Š. (2001). Gender Wage Gap and Segregation in Late Transition. Working Paper 182, CERGE-EI, Prague.
JURAJDA, Š. (2003). Gender Wage Gap and Segregation in Enterprises and the Public Sector in Late Transition Countries. Journal of Comparative Economics 31(2), 199-222. Elsevier.
JURAJDA, Š., (2005). Gender Segregation and Wage Gap: An East-West Comparison. Journal of the European Economic Association 3(2-3), 598-607. MIT Press.
KRUEGER, A. B. (1993). How Computers Have Changed the Wage Structure: Evidence from Microdata, 1984-1989. Quarterly Journal of Economics 108 (1), 33-60.
KRUEGER, A. B., SUMMERS, L. H. (1988). Efficiency wages and the inter-industry wage structure. Econometrica 56, pp. 259–293.
KŘÍŽKOVÁ, A. et al. (2006). Pracovní a rodinné role a jejich kombinace v životě českých rodičů: plány versus realita. Sociologické studie/Sociological studies 06(14). Sociologický ústav AV ČR, Praha.
LAZEAR, E. P. (1998). Personnel Economics for Managers. John Wiley and Sons, New York.
MINCER, J. (1974). Schooling, Experience and Earnings. Columbia University, New York.
MOE, K. (2003). Women, Family, and Work: Writings on the Economics of Gender. Blackwell Publishing. ISBN: 0-631-22576-5.
PENCAVEL, J. (1991). Higher Education, Productivity and Earnings: A Review. Journal of Economic Education 22 (4), 331-359.
SCHOENBERG, U.; LUDSTECK, J. (2007). Maternity Leave Legislation, Female Labor Supply and the Family Wage Gap. IZA Discussion Papers 2699. Institute for the Study of Labor (IZA).
WÜRTZ, A. (2007). The Long-Term Effecton Children of Increasing the Length of Parents Birth-Related Leave. Department of Economics Working Paper 07-11. Aarhus School of Business.