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EdPlaCo-MK: A tool for greater gender wage equality in Macedonia

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This presentation discusses the Macedonian labour market gender inequalities and participation gaps. It presents an online tool – EdPlaCo-MK – aiming at contributing to reducing the gender wage gap. …

This presentation discusses the Macedonian labour market gender inequalities and participation gaps. It presents an online tool – EdPlaCo-MK – aiming at contributing to reducing the gender wage gap.
Presentation by Marjan Petreski, University American College Skopje
GDN 14th Annual Conference
Manila, Philippines
June 19-21, 2013

Published in: News & Politics, Technology
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  • 1. EdPlaCo-MKA tool for greater gender wage equality in Macedonia- With reference to workers’characteristics and selectivity bias intoemployment -Dr. Marjan PetreskiTeamDr. Nikica Mojsoska BlazevskiMs. Blagica PetreskiUniversity American College SkopjeAssociation for economic research "Finance Think" SkopjeManila, 19-21 June 2013M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 1 / 21
  • 2. One minute question...Who works in a company/institution that:... pays equal wage for men and women?
  • 3. One minute question...Who works in a company/institution that:... pays equal wage for men and women?... pays appropriate wage to your education, skills and experience?M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 2 / 21
  • 4. One minute question...Who works in a company/institution that:... pays equal wage for men and women?... pays appropriate wage to your education, skills and experience?... improves job satisfaction in an equal-pay environment?M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 2 / 21
  • 5. One minute question...Who works in a company/institution that:... pays equal wage for men and women?... pays appropriate wage to your education, skills and experience?... improves job satisfaction in an equal-pay environment?... o¤ers options for job sharing, ‡exible and part-time arrangements?M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 2 / 21
  • 6. Objective of the researchTo develop a web-based developmental tool to reduce gender wageinequality in MacedoniaM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 3 / 21
  • 7. Motivation“Balkan phenomenon”In 2011, the gender wage gap in Macedonia was 12%M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 4 / 21
  • 8. Motivation“Balkan phenomenon”In 2011, the gender wage gap in Macedonia was 12%When adjusted to the observable characteristics of working labor, thegap jumps to 17% - “Balkan phenomenon”M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 4 / 21
  • 9. Motivation“Balkan phenomenon”In 2011, the gender wage gap in Macedonia was 12%When adjusted to the observable characteristics of working labor, thegap jumps to 17% - “Balkan phenomenon”Education, experience, age and other observables cannot explain thegapM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 4 / 21
  • 10. MotivationDisaggregated according to the skills levelUnadjusted wage gapLow skills 30%Medium skills 19%High skills 5%TOTAL 12%Source: SILC, 2011M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 5 / 21
  • 11. MotivationDisaggregated according to the skills levelthe gap is very wide for low-skilled workersUnadjusted wage gapLow skills 30%Medium skills 19%High skills 5%TOTAL 12%Source: SILC, 2011M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 5 / 21
  • 12. MotivationLabor market characteristics of a transition economyLow employment rate of 44%M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21
  • 13. MotivationLabor market characteristics of a transition economyLow employment rate of 44%Low participation rate of 64%M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21
  • 14. MotivationLabor market characteristics of a transition economyLow employment rate of 44%Low participation rate of 64%Large gender gaps in employment (16 p.p.) and activity (26 p.p)M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21
  • 15. MotivationLabor market characteristics of a transition economyLow employment rate of 44%Low participation rate of 64%Large gender gaps in employment (16 p.p.) and activity (26 p.p)traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21
  • 16. MotivationLabor market characteristics of a transition economyLow employment rate of 44%Low participation rate of 64%Large gender gaps in employment (16 p.p.) and activity (26 p.p)traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)rural women - unpaid family workerM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21
  • 17. MotivationLabor market characteristics of a transition economyLow employment rate of 44%Low participation rate of 64%Large gender gaps in employment (16 p.p.) and activity (26 p.p)traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)rural women - unpaid family workerthe large emigration and remmitancesM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21
  • 18. MotivationGender employment and participation gaps may shed some light ongender wage gap?M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 7 / 21
  • 19. MotivationGender employment and participation gaps may shed some light ongender wage gap?Large portion of working-age women remain outside of the labormarket/jobsM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 7 / 21
  • 20. MotivationNon-random selection into employment, especially among thelower-skilled womenM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 8 / 21
  • 21. MotivationNon-random selection into employment, especially among thelower-skilled womenlow-wage female workers do not feature in the observed wagedistributionM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 8 / 21
  • 22. MotivationNon-random selection into employment, especially among thelower-skilled womenlow-wage female workers do not feature in the observed wagedistributionIf correct, then the “Balkan phenomenon” might lead to in‡ated,rather than to "unexplained" gender wage gapM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 8 / 21
  • 23. MotivationNon-random selection into employment, especially among thelower-skilled womenlow-wage female workers do not feature in the observed wagedistributionIf correct, then the “Balkan phenomenon” might lead to in‡ated,rather than to "unexplained" gender wage gapIf employed women in Macedonia tend to have relatively low-wagecharacteristics (compared to inactive and unemployed women), lowfemale employment rates become consistent with high gender wagegapsM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 8 / 21
  • 24. LiteratureSubstantial literature both on gender wage gap and employment gapM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 9 / 21
  • 25. LiteratureSubstantial literature both on gender wage gap and employment gapSome of the available literature includes: Gronau (1974); Beblo et al.(2003); Albrecht et al. (2004); Azmat et al. (2004); Fotin (2005);Petrongolo and Olivetti (2006) and othersM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 9 / 21
  • 26. LiteratureSubstantial literature both on gender wage gap and employment gapSome of the available literature includes: Gronau (1974); Beblo et al.(2003); Albrecht et al. (2004); Azmat et al. (2004); Fotin (2005);Petrongolo and Olivetti (2006) and othersNo studies simultaneously examining the twoM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 9 / 21
  • 27. LiteratureSubstantial literature both on gender wage gap and employment gapSome of the available literature includes: Gronau (1974); Beblo et al.(2003); Albrecht et al. (2004); Azmat et al. (2004); Fotin (2005);Petrongolo and Olivetti (2006) and othersNo studies simultaneously examining the twoNo study so far for Macedonia or other country from the WesternBalkanM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 9 / 21
  • 28. Policy innovationSolution for developmentEstablishing a web-supported developmental tool as a way of helpingprivate companies and public institutions to develop organizationalsolution for fair compensation of employeesSolution“Equal Pay in Companies –Macedonia” –EdPlaCo-MKM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 10 / 21
  • 29. Policy innovationSolution for developmentAwarding a logo as a label of fair payerM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 11 / 21
  • 30. MethodologyThe empirical approach will recuperate the counterfactual wagedistribution that would prevail if the selection into work is fullyrandomM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 12 / 21
  • 31. MethodologyThe empirical approach will recuperate the counterfactual wagedistribution that would prevail if the selection into work is fullyrandomalternative imputation techniques based on median regressionsM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 12 / 21
  • 32. MethodologyThe empirical approach will recuperate the counterfactual wagedistribution that would prevail if the selection into work is fullyrandomalternative imputation techniques based on median regressionsdo not require assumptions on the actual level of missing wages(matching approach)M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 12 / 21
  • 33. MethodologyThe empirical approach will recuperate the counterfactual wagedistribution that would prevail if the selection into work is fullyrandomalternative imputation techniques based on median regressionsdo not require assumptions on the actual level of missing wages(matching approach)nor they require arbitrary exclusion restrictions and lack of robustness(Manski, 1989) (Heckman models)M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 12 / 21
  • 34. MethodologyRepeated imputation considers the uncertainty about the reason formissing information (Rubin, 1987)M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 13 / 21
  • 35. MethodologyRepeated imputation considers the uncertainty about the reason formissing information (Rubin, 1987)It is based on a probabilistic model, i.e. on repeated random drawsunder our chosen model for non-employmentM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 13 / 21
  • 36. MethodologyRepeated imputation considers the uncertainty about the reason formissing information (Rubin, 1987)It is based on a probabilistic model, i.e. on repeated random drawsunder our chosen model for non-employmentHence, it considers the additional variability underlying the presence ofmissing values.M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 13 / 21
  • 37. MethodologyInnovativenessM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 14 / 21
  • 38. MethodologyInnovativenessalternative imputation techniques which proved stronger in making thedistributional assumptionsM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 14 / 21
  • 39. MethodologyInnovativenessalternative imputation techniques which proved stronger in making thedistributional assumptionsre‡ecting on the uncertainty related to the reason for missing wage.M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 14 / 21
  • 40. DataSurvey of income and living conditions (SILC)M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21
  • 41. DataSurvey of income and living conditions (SILC)First collected in Macedonia in 2011M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21
  • 42. DataSurvey of income and living conditions (SILC)First collected in Macedonia in 2011AdvantagesM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21
  • 43. DataSurvey of income and living conditions (SILC)First collected in Macedonia in 2011AdvantagesFirst use of this datasetM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21
  • 44. DataSurvey of income and living conditions (SILC)First collected in Macedonia in 2011AdvantagesFirst use of this datasetRich and large datasetM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21
  • 45. Current policy environmentParliamentary Commission on Gender EqualityHowever, results are largely absentM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21
  • 46. Current policy environmentParliamentary Commission on Gender EqualityNo evidence-based measuresHowever, results are largely absentM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21
  • 47. Current policy environmentParliamentary Commission on Gender EqualityNo evidence-based measuresNo focus on gender wage equalityHowever, results are largely absentM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21
  • 48. Current policy environmentParliamentary Commission on Gender EqualityNo evidence-based measuresNo focus on gender wage equalityEqual Opportunities Committees (EOCs) working at the local levelHowever, results are largely absentM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21
  • 49. Current policy environmentParliamentary Commission on Gender EqualityNo evidence-based measuresNo focus on gender wage equalityEqual Opportunities Committees (EOCs) working at the local levelMacedonia endorsed the ILO Convention for equal wage for work ofequal valueHowever, results are largely absentM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21
  • 50. Current policy environmentParliamentary Commission on Gender EqualityNo evidence-based measuresNo focus on gender wage equalityEqual Opportunities Committees (EOCs) working at the local levelMacedonia endorsed the ILO Convention for equal wage for work ofequal valueThough, incorrectly implementedHowever, results are largely absentM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21
  • 51. Policy impactAt the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and de…ne operational solutions for fairpayment to men and womenM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
  • 52. Policy impactAt the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and de…ne operational solutions for fairpayment to men and womenAttract the best workersM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
  • 53. Policy impactAt the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and de…ne operational solutions for fairpayment to men and womenAttract the best workersPrepare best practices related to remunerationM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
  • 54. Policy impactAt the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and de…ne operational solutions for fairpayment to men and womenAttract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
  • 55. Policy impactAt the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and de…ne operational solutions for fairpayment to men and womenAttract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
  • 56. Policy impactAt the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and de…ne operational solutions for fairpayment to men and womenAttract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
  • 57. Policy impactAt the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and de…ne operational solutions for fairpayment to men and womenAttract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
  • 58. Policy impactAt the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and de…ne operational solutions for fairpayment to men and womenAttract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversityM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
  • 59. Policy impactAt the employee’level, EdPlaCo-MK willM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21
  • 60. Policy impactAt the employee’level, EdPlaCo-MK willProvide employees with a yardstick against which will estimate theirfair wageM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21
  • 61. Policy impactAt the employee’level, EdPlaCo-MK willProvide employees with a yardstick against which will estimate theirfair wageSteer motivation on the workplace and potentially raise productivityM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21
  • 62. Policy impactAt the employee’level, EdPlaCo-MK willProvide employees with a yardstick against which will estimate theirfair wageSteer motivation on the workplace and potentially raise productivityImprove employees’bargaining powerM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21
  • 63. Policy impactAt the employee’level, EdPlaCo-MK willProvide employees with a yardstick against which will estimate theirfair wageSteer motivation on the workplace and potentially raise productivityImprove employees’bargaining powerProvide incentives for greater labor supplyM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21
  • 64. Policy impactAt the government level, the project willM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 19 / 21
  • 65. Policy impactAt the government level, the project willProvide evidence for better design of policies related to gender equalityM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 19 / 21
  • 66. Policy impactAt the government level, the project willProvide evidence for better design of policies related to gender equalitySpur the debate about the gender wage inequality and advocate forinclusion of wage equality policies in the Action plan for gender equalityM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 19 / 21
  • 67. Therefore...Those of you who did not raise hands at the beginningM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 20 / 21
  • 68. Therefore...Those of you who did not raise hands at the beginningAre much welcome to work in an environment featuring gender equalityin Macedonia after the implementation of this projectM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 20 / 21
  • 69. Thank you very much for your attention!marjan.petreski@uacs.edu.mkwww.uacs.edu.mkwww.…nancethink.mkM. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 21 / 21

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