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

1. EdPlaCo-MK
A tool for greater gender wage equality in Macedonia
- With reference to workers’characteristics and selectivity bias into
employment -
Dr. Marjan Petreski
Team
Dr. Nikica Mojsoska Blazevski
Ms. Blagica Petreski
University American College Skopje
Association for economic research "Finance Think" Skopje
Manila, 19-21 June 2013
M. 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 research
To develop a web-based developmental tool to reduce gender wage
inequality in Macedonia
M. 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, the
gap 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, the
gap jumps to 17% - “Balkan phenomenon”
Education, experience, age and other observables cannot explain the
gap
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 4 / 21

10. Motivation
Disaggregated according to the skills level
Unadjusted wage gap
Low skills 30%
Medium skills 19%
High skills 5%
TOTAL 12%
Source: SILC, 2011
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 5 / 21

11. Motivation
Disaggregated according to the skills level
the gap is very wide for low-skilled workers
Unadjusted wage gap
Low skills 30%
Medium skills 19%
High skills 5%
TOTAL 12%
Source: SILC, 2011
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 5 / 21

12. Motivation
Labor market characteristics of a transition economy
Low employment rate of 44%
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21

13. Motivation
Labor market characteristics of a transition economy
Low employment rate of 44%
Low participation rate of 64%
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21

14. Motivation
Labor market characteristics of a transition economy
Low 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. Motivation
Labor market characteristics of a transition economy
Low 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. Motivation
Labor market characteristics of a transition economy
Low 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 worker
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21

17. Motivation
Labor market characteristics of a transition economy
Low 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 worker
the large emigration and remmitances
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21

18. Motivation
Gender employment and participation gaps may shed some light on
gender wage gap?
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 7 / 21

19. Motivation
Gender employment and participation gaps may shed some light on
gender wage gap?
Large portion of working-age women remain outside of the labor
market/jobs
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 7 / 21

20. Motivation
Non-random selection into employment, especially among the
lower-skilled women
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 8 / 21

21. Motivation
Non-random selection into employment, especially among the
lower-skilled women
low-wage female workers do not feature in the observed wage
distribution
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 8 / 21

22. Motivation
Non-random selection into employment, especially among the
lower-skilled women
low-wage female workers do not feature in the observed wage
distribution
If correct, then the “Balkan phenomenon” might lead to in‡ated,
rather than to "unexplained" gender wage gap
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 8 / 21

23. Motivation
Non-random selection into employment, especially among the
lower-skilled women
low-wage female workers do not feature in the observed wage
distribution
If correct, then the “Balkan phenomenon” might lead to in‡ated,
rather than to "unexplained" gender wage gap
If employed women in Macedonia tend to have relatively low-wage
characteristics (compared to inactive and unemployed women), low
female employment rates become consistent with high gender wage
gaps
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 8 / 21

24. Literature
Substantial literature both on gender wage gap and employment gap
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 9 / 21

25. Literature
Substantial literature both on gender wage gap and employment gap
Some 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 others
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 9 / 21

26. Literature
Substantial literature both on gender wage gap and employment gap
Some 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 others
No studies simultaneously examining the two
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 9 / 21

27. Literature
Substantial literature both on gender wage gap and employment gap
Some 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 others
No studies simultaneously examining the two
No study so far for Macedonia or other country from the Western
Balkan
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 9 / 21

28. Policy innovation
Solution for development
Establishing a web-supported developmental tool as a way of helping
private companies and public institutions to develop organizational
solution for fair compensation of employees
Solution
“Equal Pay in Companies –Macedonia” –EdPlaCo-MK
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 10 / 21

29. Policy innovation
Solution for development
Awarding a logo as a label of fair payer
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 11 / 21

30. Methodology
The empirical approach will recuperate the counterfactual wage
distribution that would prevail if the selection into work is fully
random
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 12 / 21

31. Methodology
The empirical approach will recuperate the counterfactual wage
distribution that would prevail if the selection into work is fully
random
alternative imputation techniques based on median regressions
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 12 / 21

32. Methodology
The empirical approach will recuperate the counterfactual wage
distribution that would prevail if the selection into work is fully
random
alternative imputation techniques based on median regressions
do 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. Methodology
The empirical approach will recuperate the counterfactual wage
distribution that would prevail if the selection into work is fully
random
alternative imputation techniques based on median regressions
do 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. Methodology
Repeated imputation considers the uncertainty about the reason for
missing information (Rubin, 1987)
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 13 / 21

35. Methodology
Repeated imputation considers the uncertainty about the reason for
missing information (Rubin, 1987)
It is based on a probabilistic model, i.e. on repeated random draws
under our chosen model for non-employment
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 13 / 21

36. Methodology
Repeated imputation considers the uncertainty about the reason for
missing information (Rubin, 1987)
It is based on a probabilistic model, i.e. on repeated random draws
under our chosen model for non-employment
Hence, it considers the additional variability underlying the presence of
missing values.
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 13 / 21

37. Methodology
Innovativeness
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 14 / 21

38. Methodology
Innovativeness
alternative imputation techniques which proved stronger in making the
distributional assumptions
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 14 / 21

39. Methodology
Innovativeness
alternative imputation techniques which proved stronger in making the
distributional assumptions
re‡ecting on the uncertainty related to the reason for missing wage.
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 14 / 21

40. Data
Survey of income and living conditions (SILC)
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21

41. Data
Survey of income and living conditions (SILC)
First collected in Macedonia in 2011
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21

42. Data
Survey of income and living conditions (SILC)
First collected in Macedonia in 2011
Advantages
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21

43. Data
Survey of income and living conditions (SILC)
First collected in Macedonia in 2011
Advantages
First use of this dataset
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21

44. Data
Survey of income and living conditions (SILC)
First collected in Macedonia in 2011
Advantages
First use of this dataset
Rich and large dataset
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21

45. Current policy environment
Parliamentary Commission on Gender Equality
However, results are largely absent
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21

46. Current policy environment
Parliamentary Commission on Gender Equality
No evidence-based measures
However, results are largely absent
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21

47. Current policy environment
Parliamentary Commission on Gender Equality
No evidence-based measures
No focus on gender wage equality
However, results are largely absent
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21

48. Current policy environment
Parliamentary Commission on Gender Equality
No evidence-based measures
No focus on gender wage equality
Equal Opportunities Committees (EOCs) working at the local level
However, results are largely absent
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21

49. Current policy environment
Parliamentary Commission on Gender Equality
No evidence-based measures
No focus on gender wage equality
Equal Opportunities Committees (EOCs) working at the local level
Macedonia endorsed the ILO Convention for equal wage for work of
equal value
However, results are largely absent
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21

50. Current policy environment
Parliamentary Commission on Gender Equality
No evidence-based measures
No focus on gender wage equality
Equal Opportunities Committees (EOCs) working at the local level
Macedonia endorsed the ILO Convention for equal wage for work of
equal value
Though, incorrectly implemented
However, results are largely absent
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21

51. Policy impact
At the employers’level, EdPlaCo-MK will help identifying the
causes of wage inequality and de…ne operational solutions for fair
payment to men and women
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21

52. Policy impact
At the employers’level, EdPlaCo-MK will help identifying the
causes of wage inequality and de…ne operational solutions for fair
payment to men and women
Attract the best workers
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21

53. Policy impact
At the employers’level, EdPlaCo-MK will help identifying the
causes of wage inequality and de…ne operational solutions for fair
payment to men and women
Attract the best workers
Prepare best practices related to remuneration
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21

54. Policy impact
At the employers’level, EdPlaCo-MK will help identifying the
causes of wage inequality and de…ne operational solutions for fair
payment to men and women
Attract the best workers
Prepare best practices related to remuneration
Improve the transparency of the remuneration policy and build better
image
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21

55. Policy impact
At the employers’level, EdPlaCo-MK will help identifying the
causes of wage inequality and de…ne operational solutions for fair
payment to men and women
Attract the best workers
Prepare best practices related to remuneration
Improve the transparency of the remuneration policy and build better
image
Reduce information assymetry in the collective bargaining process
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21

56. Policy impact
At the employers’level, EdPlaCo-MK will help identifying the
causes of wage inequality and de…ne operational solutions for fair
payment to men and women
Attract the best workers
Prepare best practices related to remuneration
Improve the transparency of the remuneration policy and build better
image
Reduce information assymetry in the collective bargaining process
Increase the overall motivation and job satisfacion in the
company/institution
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21

57. Policy impact
At the employers’level, EdPlaCo-MK will help identifying the
causes of wage inequality and de…ne operational solutions for fair
payment to men and women
Attract the best workers
Prepare best practices related to remuneration
Improve the transparency of the remuneration policy and build better
image
Reduce information assymetry in the collective bargaining process
Increase the overall motivation and job satisfacion in the
company/institution
Improve overall corporate governance
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21

58. Policy impact
At the employers’level, EdPlaCo-MK will help identifying the
causes of wage inequality and de…ne operational solutions for fair
payment to men and women
Attract the best workers
Prepare best practices related to remuneration
Improve the transparency of the remuneration policy and build better
image
Reduce information assymetry in the collective bargaining process
Increase the overall motivation and job satisfacion in the
company/institution
Improve overall corporate governance
Achieve competitive advantage by promoting gender diversity
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21

59. Policy impact
At the employee’level, EdPlaCo-MK will
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21

60. Policy impact
At the employee’level, EdPlaCo-MK will
Provide employees with a yardstick against which will estimate their
fair wage
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21

61. Policy impact
At the employee’level, EdPlaCo-MK will
Provide employees with a yardstick against which will estimate their
fair wage
Steer motivation on the workplace and potentially raise productivity
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21

62. Policy impact
At the employee’level, EdPlaCo-MK will
Provide employees with a yardstick against which will estimate their
fair wage
Steer motivation on the workplace and potentially raise productivity
Improve employees’bargaining power
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21

63. Policy impact
At the employee’level, EdPlaCo-MK will
Provide employees with a yardstick against which will estimate their
fair wage
Steer motivation on the workplace and potentially raise productivity
Improve employees’bargaining power
Provide incentives for greater labor supply
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21

64. Policy impact
At the government level, the project will
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 19 / 21

65. Policy impact
At the government level, the project will
Provide evidence for better design of policies related to gender equality
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 19 / 21

66. Policy impact
At the government level, the project will
Provide evidence for better design of policies related to gender equality
Spur the debate about the gender wage inequality and advocate for
inclusion of wage equality policies in the Action plan for gender equality
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 19 / 21

67. Therefore...
Those of you who did not raise hands at the beginning
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 20 / 21

68. Therefore...
Those of you who did not raise hands at the beginning
Are much welcome to work in an environment featuring gender equality
in Macedonia after the implementation of this project
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 20 / 21

69. Thank you very much for your attention!
marjan.petreski@uacs.edu.mk
www.uacs.edu.mk
www.…nancethink.mk
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 21 / 21