A comprehensive analysis of the gender wage differential among Finnish full time employees is reported. Oaxaca decompositions show that the the overall wage gap of about 21.5 per cent cannot be accounted for by individual characteristics, since age and educational qualifications are rather similar for men and women. When industry and occupational qualifications are included in the regressor matrix, the unexplained part shrinks to about 50 per cent of the gross differential. An even larger part of the gross differential can be explained in sector-specific analyses with a dense set of occupational dummies. In a less standard part of the analysis, we characterise the distribution of the unexplained wage gap across the variable space. It turns out the women with a high wage predictor, that is, women with good educational qualifications in well-remunerated occupations, drag the most behind their male colleagues endowed with similar characteristics.
Using Finnish data this paper examines to what extent the share of all nurses in unemployment, health care employment and being out of the labour market after the exam of a cohort have affected the long-run outcomes of the cohort. The shares are calculated for all cohorts and years and standardised in each year by dividing the cohort specific rate with the average rate for all nurses. These standardised variables are used as dependent variables. The long-term effects are significant at least for the unemployment and the depression have according to the estimates raised the long-run unemployment by more than 2 percentage points for the nurses graduating then. For the employment in the health care industry the effects may be even larger but the estimates are more uncertain.
This paper addresses the issue of the gender pay gap in the formal and informal labour markets in Poland. The authors verify the hypothesis of the existence of a gender pay gap in informal work and compare this gap with the one observed in the formal (registered) labour market.
Various analyses of available data show that size and characteristics of gender pay gap differ depending on the level of earnings. The inequality of earnings among unregistered women and men is more pronounced at the bottom tail of the earnings distribution. In the case of formal employees, inequality at the top of the distribution tends to be larger, confirming the existence of a ‘glass ceiling’.
The decomposition of the gender pay gap for selected quintiles indicates that it would be even higher if women had men’s characteristics.
A possible explanation of the results is the lack of minimum wage regulations in the informal market and the greater flexibility in agreement on wages in the higher quantiles.
Authored by: Magdalena Rokicka and Anna Ruzik-Sierdzinska
Published in 2010
In this paper we study the wage curve with both cross-sectional and pooled Finnish data. Hourly wage is used as a dependent variable throughout the paper as well as a fairly detailed definition of the local labour market. Results indicate that there exists a relationship similar to downward sloping wage curve in the Finnish data. Results are sensitive to the inclusion of regional fixed effects.
This document summarizes a study that explores the relationship between adverse working conditions, job satisfaction, and workers' intentions to quit their jobs using data from Finland. The study finds that workers currently facing adverse working conditions have greater intentions to switch jobs and are more willing to stop working completely. They also search for new jobs more frequently. There is evidence that adverse working conditions increase job dissatisfaction and it is this job dissatisfaction that drives workers' intentions to quit and intensifies actual job searching. The study uses a unique data set that includes detailed information on working conditions reported by individual workers, in addition to measures of job satisfaction and intentions to quit.
Using Finnish data this paper examines to what extent the share of a cohort being unemployed, in health care employment and being out of the labour market after the graduation of the cohort have affected the long-run labour market outcomes. The dependent variables are formed by standardising the shares for all cohorts and years. This is done by dividing the cohort specific share with the average share for all nurses in each year. The long-term effects are significant for all three variables. According to the estimates the deep recession of the 1990s raised the long-run unemployment by more than 2 percentage points for the nurses graduating then.
This paper explores the potential role of adverse working conditions in the determination of workers’ sickness absences. Our data contain detailed information on the prevalence of job disamenities at the workplace from a representative sample of Finnish workers. The results from reduced-form models reveal that workers facing adverse working conditions tend to have a greater number of sickness absences. In addition, reduced-form models clearly show that regional labour market conditions are an important determinant of sickness absences. Hence, sickness absences are more common in regions of low unemployment. Recursive models suggest that the prevalence of harms at the workplace is associated with job dissatisfaction and dissatisfaction with workers’ sickness absences.
The document examines determinants of job search intensity in Denmark, Finland, and Norway using survey data from 1998. It finds:
1) Job search intensity varies significantly between the countries, with Danish and Finnish respondents less likely to search and Norwegians searching most intensely.
2) Attitudes towards work positively impact search, while those facing economic hardship from unemployment search harder.
3) In Finland and Norway, unemployment benefit recipients search more actively than non-recipients, while there is no difference in Denmark.
COMPARISON ON COMPANY LEVEL OF MANUFACTURING BUSINESS SENTIMENT SURVEY DATA A...Kees Nieuwstad
COMPARISON ON COMPANY LEVEL OF MANUFACTURING BUSINESS SENTIMENT SURVEY DATA AND TURNOVER --- Published by Statistics Netherlands.
Using a classification method developed in this paper, the quality of qualitative survey data of the manufacturing industry at micro-economic level is investigated. For single companies, recent opinions on recent production developments are compared to quantitative results of industrial turnover. The results show that 57.6% of the analyzed companies give useful qualitative answers for calculating meaningful balance statistics such as producers’ confidence. The level of agreement between quantitative and qualitative data for companies with seasonal patterns in turnover on average is 10.6%-points higher than for companies without seasonal patterns.
Keywords: Survey data, Quality, Qualitative data, Single company performance, Seasonal correction, Manufacturing industry turnover
Using Finnish data this paper examines to what extent the share of all nurses in unemployment, health care employment and being out of the labour market after the exam of a cohort have affected the long-run outcomes of the cohort. The shares are calculated for all cohorts and years and standardised in each year by dividing the cohort specific rate with the average rate for all nurses. These standardised variables are used as dependent variables. The long-term effects are significant at least for the unemployment and the depression have according to the estimates raised the long-run unemployment by more than 2 percentage points for the nurses graduating then. For the employment in the health care industry the effects may be even larger but the estimates are more uncertain.
This paper addresses the issue of the gender pay gap in the formal and informal labour markets in Poland. The authors verify the hypothesis of the existence of a gender pay gap in informal work and compare this gap with the one observed in the formal (registered) labour market.
Various analyses of available data show that size and characteristics of gender pay gap differ depending on the level of earnings. The inequality of earnings among unregistered women and men is more pronounced at the bottom tail of the earnings distribution. In the case of formal employees, inequality at the top of the distribution tends to be larger, confirming the existence of a ‘glass ceiling’.
The decomposition of the gender pay gap for selected quintiles indicates that it would be even higher if women had men’s characteristics.
A possible explanation of the results is the lack of minimum wage regulations in the informal market and the greater flexibility in agreement on wages in the higher quantiles.
Authored by: Magdalena Rokicka and Anna Ruzik-Sierdzinska
Published in 2010
In this paper we study the wage curve with both cross-sectional and pooled Finnish data. Hourly wage is used as a dependent variable throughout the paper as well as a fairly detailed definition of the local labour market. Results indicate that there exists a relationship similar to downward sloping wage curve in the Finnish data. Results are sensitive to the inclusion of regional fixed effects.
This document summarizes a study that explores the relationship between adverse working conditions, job satisfaction, and workers' intentions to quit their jobs using data from Finland. The study finds that workers currently facing adverse working conditions have greater intentions to switch jobs and are more willing to stop working completely. They also search for new jobs more frequently. There is evidence that adverse working conditions increase job dissatisfaction and it is this job dissatisfaction that drives workers' intentions to quit and intensifies actual job searching. The study uses a unique data set that includes detailed information on working conditions reported by individual workers, in addition to measures of job satisfaction and intentions to quit.
Using Finnish data this paper examines to what extent the share of a cohort being unemployed, in health care employment and being out of the labour market after the graduation of the cohort have affected the long-run labour market outcomes. The dependent variables are formed by standardising the shares for all cohorts and years. This is done by dividing the cohort specific share with the average share for all nurses in each year. The long-term effects are significant for all three variables. According to the estimates the deep recession of the 1990s raised the long-run unemployment by more than 2 percentage points for the nurses graduating then.
This paper explores the potential role of adverse working conditions in the determination of workers’ sickness absences. Our data contain detailed information on the prevalence of job disamenities at the workplace from a representative sample of Finnish workers. The results from reduced-form models reveal that workers facing adverse working conditions tend to have a greater number of sickness absences. In addition, reduced-form models clearly show that regional labour market conditions are an important determinant of sickness absences. Hence, sickness absences are more common in regions of low unemployment. Recursive models suggest that the prevalence of harms at the workplace is associated with job dissatisfaction and dissatisfaction with workers’ sickness absences.
The document examines determinants of job search intensity in Denmark, Finland, and Norway using survey data from 1998. It finds:
1) Job search intensity varies significantly between the countries, with Danish and Finnish respondents less likely to search and Norwegians searching most intensely.
2) Attitudes towards work positively impact search, while those facing economic hardship from unemployment search harder.
3) In Finland and Norway, unemployment benefit recipients search more actively than non-recipients, while there is no difference in Denmark.
COMPARISON ON COMPANY LEVEL OF MANUFACTURING BUSINESS SENTIMENT SURVEY DATA A...Kees Nieuwstad
COMPARISON ON COMPANY LEVEL OF MANUFACTURING BUSINESS SENTIMENT SURVEY DATA AND TURNOVER --- Published by Statistics Netherlands.
Using a classification method developed in this paper, the quality of qualitative survey data of the manufacturing industry at micro-economic level is investigated. For single companies, recent opinions on recent production developments are compared to quantitative results of industrial turnover. The results show that 57.6% of the analyzed companies give useful qualitative answers for calculating meaningful balance statistics such as producers’ confidence. The level of agreement between quantitative and qualitative data for companies with seasonal patterns in turnover on average is 10.6%-points higher than for companies without seasonal patterns.
Keywords: Survey data, Quality, Qualitative data, Single company performance, Seasonal correction, Manufacturing industry turnover
Non-wage income is a big component of total income in America, yet is almost never analyzed in terms of inequality and discrimination. Here we use the Tobit method to determine the likelihood of a person earning Non-Wage income.
The document discusses using visuals to present information and stories in data. It explains that visuals help make ideas more complete, find relationships, make points vivid, emphasize key material, and present information compactly. Different types of visuals like tables, charts, graphs and flowcharts are best suited for certain types of stories and relationships. Design conventions like clear titles, labels, legends and sources should be followed. The best visual depends on whether the reader needs exact values or to see relationships and changes. Matching the right visual to the story is important for effective communication.
The document discusses different types of statistical data and analysis methods. It covers descriptive and inferential statistics, different levels of measurement for variables, sampling methods, and approaches for organizing and presenting data through frequency distributions and graphs. Specific topics include nominal, ordinal, interval and ratio levels of measurement, constructing frequency distributions, calculating class intervals, and using histograms and frequency polygons to portray the distribution of vehicle selling prices at a car dealership.
This study examines the impact of investor sentiment on emerging stock market liquidity using panel data from 12 emerging markets from 2002-2015 and time series data from two aggregate emerging market indices. The study finds a positive relationship between domestic investor sentiment and stock market liquidity across emerging markets. Results also indicate that foreign investor sentiment, particularly from the U.S. and Europe, significantly influences liquidity in emerging stock markets. Three measures of liquidity - trading volume, Amihud's illiquidity ratio, and bid-ask spreads - are used to capture different aspects of liquidity.
The document discusses using visuals to present information and find stories within data. It explains that visuals make ideas more vivid and help emphasize important points. Different types of visuals like tables, charts, graphs and flowcharts are best suited for certain types of stories and relationships within data. The document provides guidance on how to select the appropriate visual to match the story, design visuals clearly, and find stories within data by looking for relationships and changes over time.
we study the size and evolution of the gender wage gap in Poland. We employ two different methods a parametric Oaxaca-Blinder decomposition and the non-parametric Nopo decomoposition. We show that since transition the adjusted gender wage gap in Poland was always larger than the raw gap.
This document provides a literature review on analyzing gender gaps. It discusses how gender gaps can be examined across different dimensions like labor participation, economic opportunity, political empowerment, education, and health. It outlines factors that can explain gender gaps like social norms, cultural environments, and psychological differences between males and females. The document also discusses how reducing gender inequality can promote sustainable development and economic growth. Finally, it reviews several approaches used to measure gender gaps developed by organizations like the UNDP, OECD, World Bank, and World Economic Forum.
As the process of population ageing in Europe carries on and the retirement age increases, the relationship between age and productivity becomes more and more important. One can be afraid that as the average age of the working individual goes up, the average level of productivity growth will go down, resulting in decreasing competitiveness of European economies. Our expectation is that due to serious differences in labor market structures between New Member States (NMS) (including current candidates) and the EU15, the former are the first order candidates to experience higher than average productivity costs of ageing in the near future. In this paper, one tries to examine this hypothesis.
The research strategy in this study has been based on the assumption that, in general, wages are correlated with productivity on the individual level and, as such, can be used as a proxy for productivity. Such an assumption is quite risky and can be easily criticized. Hence, based on the results of earlier studies, our main empirical analysis is limited to groups of workers for which one can expect that correlation between productivity and wages is still substantial.
It seems, that taking all the caveats in mind, the results of our analysis show that the relative productivity of older workers in the NMS is lower than in EU15.
Authored by: Mateusz Walewski
Published in 2007
This document analyzes monthly inflation rate data from Ghana between July 1991 and December 2009. It finds that inflation in Ghana has been volatile, influenced by factors such as increases in money supply, exchange rate depreciation, and commodity price fluctuations. In 2007, Ghana adopted an inflation targeting monetary policy with the goal of reducing inflation below 10%, though global price increases caused inflation to rise above this level in 2008-2009. The document aims to model and forecast future inflation rates in Ghana using SARIMA techniques.
This document summarizes research on estimating the gender wage gap across different age groups using data from the German Socio-Economic Panel from 1984-2008. The researchers find that the raw gender wage gap tends to decrease with age, indicating older women face greater penalties than younger women. When decomposing the wage gap using the DiNardo-Fortin-Lemieux method, they find some support for human capital explanations but that changes in wage structures also play a significant role. Panel models show the wage gap is higher for older age cohorts and decreases slightly over time, as women's participation rates increase. The researchers plan to extend this analysis to other countries like the US, France and UK.
Analysis of the determinants of inflation in Ethiopia- Rift valley UniversityMESFINGETU
This document is a thesis submitted by Mesfin Getu Biru in partial fulfillment of the requirements for a Master of Arts degree in Developmental Economics from Rift Valley University. The thesis analyzes the determinants of inflation in Ethiopia from 1979/1980 to 2016/2017 using data from the National Bank of Ethiopia. It includes an abstract, table of contents, list of tables and figures, and chapters on the introduction and background of the study, literature review on theories of inflation, methodology used including data sources and econometric models, results and discussion of the empirical analysis, and conclusions. The analysis uses time series econometric techniques including unit root tests, vector autoregression, Granger causality, cointegration, and
Job satisfaction cross-culturally: Is it just acquiescence what we measure? P...Christian Bosau
This document discusses the challenges of measuring job satisfaction across cultures. It summarizes research showing that job satisfaction scores are influenced by cultural response styles like acquiescence, where some cultures are more likely to agree with survey questions. The study finds a negative relationship between a country's level of acquiescence and its average job satisfaction score. This suggests job satisfaction scores cannot be directly compared between countries without accounting for cultural response styles. The study also finds evidence that the relationship between individualism and job satisfaction may be spurious, and is instead explained by how individualism influences response styles.
What is Tabulation?
Purpose of the Tabulation
Steps in Tabulation
Consideration in Construction of a Table
Deciding to Use Figure
Types of Figure
Preparation of Figure
Creating Graphs
Figure Legends and Captions
Figure Checklist.
A study of psychographic variables proposed for segmentation for personal car...Alexander Decker
The document discusses a study that used factor analysis to identify psychographic factors affecting the purchase of personal care products. Researchers collected data through a questionnaire from 400 respondents. Exploratory factor analysis identified 6 key factors from 25 psychographic variables. The factors were labeled as personal values, work values, social interest, general attitude for life, prudent, and brand conspicuousness. The analysis provides insight into segmenting the personal care product market according to consumers' psychographic characteristics.
Low-wage subsidies are often proposed as a solution to the unemployment problem among the low skilled. Yet the empirical evidence on the effects of low-wage subsidies is surprisingly scarce. This paper examines the employment effects of a Finnish payroll tax subsidy scheme, which is targeted at the employers of older, full-time, low-wage workers. The system’s clear eligibility criteria open up an opportunity for a reliable estimation of the causal impacts of the subsidy, using the difference-in-difference-in-differences approach. Our results indicate that the subsidy system had no effects on the employment rate. However, it appears to have increased the probability of part-time workers obtaining full-time employment.
This document summarizes a study examining the relationship between labor share and unemployment in major OECD countries from 1972 to 2008. It analyzes whether the relationship has changed in a way that could indicate weakened bargaining power for labor. The study uses panel data and statistical methods for non-stationary panels to estimate wage curves and dynamic equations modeling how labor share adjusts to unemployment. Preliminary results suggest labor share declines in most OECD countries cannot be fully explained by rising unemployment and likely reflect weakened bargaining power for labor unions. The nature of the relationship may also differ between countries with varying wage-setting institutions and bargaining coordination.
We examine the effects of establishment- and industry-level labor market turnover on employees’ well-being. The linked employer-employee panel data contain both survey information on employees’ subjective well-being and comprehensive register-based information on job and worker flows. Labor market turbulence decreases well-being as experienced job satisfaction and satisfaction with job security are negatively related to the previous year’s flows. We test for the existence of compensating wage differentials by explaining wages and job satisfaction with average uncertainties, measured by an indicator for a high moving average of past excessive turnover (churning) rate. The results are consistent with compensating wage differentials, since high uncertainty increases real wages, but has no effect on job satisfaction.
We use data on twins matched to register-based information on earnings to examine the longstanding
puzzle of non-existent compensating wage differentials. The use of twin data allows us to remove otherwise unobserved productivity differences that were the prominent reason for estimation bias in the earlier studies. Using twin differences we find evidence for positive compensation of adverse working conditions in the labor market.
This study investigates the role of adverse working conditions in the determination of individual wages and overall job satisfaction in the Finnish labour market. The potential influence of adverse working conditions on self-reported fairness of pay at the workplace is considered as an alternative, indirect measure of job satisfaction. The results show that working conditions have a very minor role in the determination of individual wages in the Finnish labour market. In contrast, adverse working conditions substantially increase the level of job dissatisfaction and the perception of unfairness of pay at the workplace
This paper investigates the extent and determinants of employer demand for part-time work in the three Nordic countries (Denmark, Finland and Sweden) by making a distinction between establishments’ two main reasons for introducing part-time work, i.e. establishment needs and wishes of employees. We study the importance of different characteristics (such as e.g. size, industry, sector, share of female workers) of establishment to the probability of employerbased and of employee-based part-time work. We also put under scrutiny whether different motivations for part-time work also have different outcomes for companies and workers, and how these reasons shape the nature of part-time work. In the analyses we use the Establishment Survey on Working Time and Work-Life Balance (ESWT) in 21 EU Member States including Finland, Sweden and Denmark.
This document analyzes the connection between working conditions, job satisfaction, retirement intentions, and actual retirement decisions using linked survey and register data from Finland. The survey data contains information on perceived working conditions, job satisfaction, and retirement intentions, while the register data provides information on actual retirement decisions that can be linked to the survey respondents. The study finds that job dissatisfaction arising from adverse working conditions is significantly related to stronger retirement intentions, and retirement intentions are in turn related to earlier actual retirement. New management practices are found to improve job satisfaction and reduce retirement intentions, thereby lengthening working careers.
This document discusses alternative sample allocation designs for the Occupational Employment Statistics Survey, which estimates occupational employment and wages at a detailed level across geographic areas and industries. It proposes using a power allocation design that balances stratum population size, occupational variability within each stratum, and an even spread of sample allocation. The key aspects are:
1) It calculates a coefficient of variation for each occupation within each industry stratum to measure occupational variability.
2) It aggregates the CV values for the top 90% of occupations in each stratum, by employment weight, into a single value "Sh" to represent the stratum's overall occupational variability.
3) The power allocation formula uses employment size and Sh to determine sample
Non-wage income is a big component of total income in America, yet is almost never analyzed in terms of inequality and discrimination. Here we use the Tobit method to determine the likelihood of a person earning Non-Wage income.
The document discusses using visuals to present information and stories in data. It explains that visuals help make ideas more complete, find relationships, make points vivid, emphasize key material, and present information compactly. Different types of visuals like tables, charts, graphs and flowcharts are best suited for certain types of stories and relationships. Design conventions like clear titles, labels, legends and sources should be followed. The best visual depends on whether the reader needs exact values or to see relationships and changes. Matching the right visual to the story is important for effective communication.
The document discusses different types of statistical data and analysis methods. It covers descriptive and inferential statistics, different levels of measurement for variables, sampling methods, and approaches for organizing and presenting data through frequency distributions and graphs. Specific topics include nominal, ordinal, interval and ratio levels of measurement, constructing frequency distributions, calculating class intervals, and using histograms and frequency polygons to portray the distribution of vehicle selling prices at a car dealership.
This study examines the impact of investor sentiment on emerging stock market liquidity using panel data from 12 emerging markets from 2002-2015 and time series data from two aggregate emerging market indices. The study finds a positive relationship between domestic investor sentiment and stock market liquidity across emerging markets. Results also indicate that foreign investor sentiment, particularly from the U.S. and Europe, significantly influences liquidity in emerging stock markets. Three measures of liquidity - trading volume, Amihud's illiquidity ratio, and bid-ask spreads - are used to capture different aspects of liquidity.
The document discusses using visuals to present information and find stories within data. It explains that visuals make ideas more vivid and help emphasize important points. Different types of visuals like tables, charts, graphs and flowcharts are best suited for certain types of stories and relationships within data. The document provides guidance on how to select the appropriate visual to match the story, design visuals clearly, and find stories within data by looking for relationships and changes over time.
we study the size and evolution of the gender wage gap in Poland. We employ two different methods a parametric Oaxaca-Blinder decomposition and the non-parametric Nopo decomoposition. We show that since transition the adjusted gender wage gap in Poland was always larger than the raw gap.
This document provides a literature review on analyzing gender gaps. It discusses how gender gaps can be examined across different dimensions like labor participation, economic opportunity, political empowerment, education, and health. It outlines factors that can explain gender gaps like social norms, cultural environments, and psychological differences between males and females. The document also discusses how reducing gender inequality can promote sustainable development and economic growth. Finally, it reviews several approaches used to measure gender gaps developed by organizations like the UNDP, OECD, World Bank, and World Economic Forum.
As the process of population ageing in Europe carries on and the retirement age increases, the relationship between age and productivity becomes more and more important. One can be afraid that as the average age of the working individual goes up, the average level of productivity growth will go down, resulting in decreasing competitiveness of European economies. Our expectation is that due to serious differences in labor market structures between New Member States (NMS) (including current candidates) and the EU15, the former are the first order candidates to experience higher than average productivity costs of ageing in the near future. In this paper, one tries to examine this hypothesis.
The research strategy in this study has been based on the assumption that, in general, wages are correlated with productivity on the individual level and, as such, can be used as a proxy for productivity. Such an assumption is quite risky and can be easily criticized. Hence, based on the results of earlier studies, our main empirical analysis is limited to groups of workers for which one can expect that correlation between productivity and wages is still substantial.
It seems, that taking all the caveats in mind, the results of our analysis show that the relative productivity of older workers in the NMS is lower than in EU15.
Authored by: Mateusz Walewski
Published in 2007
This document analyzes monthly inflation rate data from Ghana between July 1991 and December 2009. It finds that inflation in Ghana has been volatile, influenced by factors such as increases in money supply, exchange rate depreciation, and commodity price fluctuations. In 2007, Ghana adopted an inflation targeting monetary policy with the goal of reducing inflation below 10%, though global price increases caused inflation to rise above this level in 2008-2009. The document aims to model and forecast future inflation rates in Ghana using SARIMA techniques.
This document summarizes research on estimating the gender wage gap across different age groups using data from the German Socio-Economic Panel from 1984-2008. The researchers find that the raw gender wage gap tends to decrease with age, indicating older women face greater penalties than younger women. When decomposing the wage gap using the DiNardo-Fortin-Lemieux method, they find some support for human capital explanations but that changes in wage structures also play a significant role. Panel models show the wage gap is higher for older age cohorts and decreases slightly over time, as women's participation rates increase. The researchers plan to extend this analysis to other countries like the US, France and UK.
Analysis of the determinants of inflation in Ethiopia- Rift valley UniversityMESFINGETU
This document is a thesis submitted by Mesfin Getu Biru in partial fulfillment of the requirements for a Master of Arts degree in Developmental Economics from Rift Valley University. The thesis analyzes the determinants of inflation in Ethiopia from 1979/1980 to 2016/2017 using data from the National Bank of Ethiopia. It includes an abstract, table of contents, list of tables and figures, and chapters on the introduction and background of the study, literature review on theories of inflation, methodology used including data sources and econometric models, results and discussion of the empirical analysis, and conclusions. The analysis uses time series econometric techniques including unit root tests, vector autoregression, Granger causality, cointegration, and
Job satisfaction cross-culturally: Is it just acquiescence what we measure? P...Christian Bosau
This document discusses the challenges of measuring job satisfaction across cultures. It summarizes research showing that job satisfaction scores are influenced by cultural response styles like acquiescence, where some cultures are more likely to agree with survey questions. The study finds a negative relationship between a country's level of acquiescence and its average job satisfaction score. This suggests job satisfaction scores cannot be directly compared between countries without accounting for cultural response styles. The study also finds evidence that the relationship between individualism and job satisfaction may be spurious, and is instead explained by how individualism influences response styles.
What is Tabulation?
Purpose of the Tabulation
Steps in Tabulation
Consideration in Construction of a Table
Deciding to Use Figure
Types of Figure
Preparation of Figure
Creating Graphs
Figure Legends and Captions
Figure Checklist.
A study of psychographic variables proposed for segmentation for personal car...Alexander Decker
The document discusses a study that used factor analysis to identify psychographic factors affecting the purchase of personal care products. Researchers collected data through a questionnaire from 400 respondents. Exploratory factor analysis identified 6 key factors from 25 psychographic variables. The factors were labeled as personal values, work values, social interest, general attitude for life, prudent, and brand conspicuousness. The analysis provides insight into segmenting the personal care product market according to consumers' psychographic characteristics.
Low-wage subsidies are often proposed as a solution to the unemployment problem among the low skilled. Yet the empirical evidence on the effects of low-wage subsidies is surprisingly scarce. This paper examines the employment effects of a Finnish payroll tax subsidy scheme, which is targeted at the employers of older, full-time, low-wage workers. The system’s clear eligibility criteria open up an opportunity for a reliable estimation of the causal impacts of the subsidy, using the difference-in-difference-in-differences approach. Our results indicate that the subsidy system had no effects on the employment rate. However, it appears to have increased the probability of part-time workers obtaining full-time employment.
This document summarizes a study examining the relationship between labor share and unemployment in major OECD countries from 1972 to 2008. It analyzes whether the relationship has changed in a way that could indicate weakened bargaining power for labor. The study uses panel data and statistical methods for non-stationary panels to estimate wage curves and dynamic equations modeling how labor share adjusts to unemployment. Preliminary results suggest labor share declines in most OECD countries cannot be fully explained by rising unemployment and likely reflect weakened bargaining power for labor unions. The nature of the relationship may also differ between countries with varying wage-setting institutions and bargaining coordination.
We examine the effects of establishment- and industry-level labor market turnover on employees’ well-being. The linked employer-employee panel data contain both survey information on employees’ subjective well-being and comprehensive register-based information on job and worker flows. Labor market turbulence decreases well-being as experienced job satisfaction and satisfaction with job security are negatively related to the previous year’s flows. We test for the existence of compensating wage differentials by explaining wages and job satisfaction with average uncertainties, measured by an indicator for a high moving average of past excessive turnover (churning) rate. The results are consistent with compensating wage differentials, since high uncertainty increases real wages, but has no effect on job satisfaction.
We use data on twins matched to register-based information on earnings to examine the longstanding
puzzle of non-existent compensating wage differentials. The use of twin data allows us to remove otherwise unobserved productivity differences that were the prominent reason for estimation bias in the earlier studies. Using twin differences we find evidence for positive compensation of adverse working conditions in the labor market.
This study investigates the role of adverse working conditions in the determination of individual wages and overall job satisfaction in the Finnish labour market. The potential influence of adverse working conditions on self-reported fairness of pay at the workplace is considered as an alternative, indirect measure of job satisfaction. The results show that working conditions have a very minor role in the determination of individual wages in the Finnish labour market. In contrast, adverse working conditions substantially increase the level of job dissatisfaction and the perception of unfairness of pay at the workplace
This paper investigates the extent and determinants of employer demand for part-time work in the three Nordic countries (Denmark, Finland and Sweden) by making a distinction between establishments’ two main reasons for introducing part-time work, i.e. establishment needs and wishes of employees. We study the importance of different characteristics (such as e.g. size, industry, sector, share of female workers) of establishment to the probability of employerbased and of employee-based part-time work. We also put under scrutiny whether different motivations for part-time work also have different outcomes for companies and workers, and how these reasons shape the nature of part-time work. In the analyses we use the Establishment Survey on Working Time and Work-Life Balance (ESWT) in 21 EU Member States including Finland, Sweden and Denmark.
This document analyzes the connection between working conditions, job satisfaction, retirement intentions, and actual retirement decisions using linked survey and register data from Finland. The survey data contains information on perceived working conditions, job satisfaction, and retirement intentions, while the register data provides information on actual retirement decisions that can be linked to the survey respondents. The study finds that job dissatisfaction arising from adverse working conditions is significantly related to stronger retirement intentions, and retirement intentions are in turn related to earlier actual retirement. New management practices are found to improve job satisfaction and reduce retirement intentions, thereby lengthening working careers.
This document discusses alternative sample allocation designs for the Occupational Employment Statistics Survey, which estimates occupational employment and wages at a detailed level across geographic areas and industries. It proposes using a power allocation design that balances stratum population size, occupational variability within each stratum, and an even spread of sample allocation. The key aspects are:
1) It calculates a coefficient of variation for each occupation within each industry stratum to measure occupational variability.
2) It aggregates the CV values for the top 90% of occupations in each stratum, by employment weight, into a single value "Sh" to represent the stratum's overall occupational variability.
3) The power allocation formula uses employment size and Sh to determine sample
This study addresses the connection between reorganization and unemployment in the labour market. Reorganization of regional labour markets measured by simultaneous gross migration flows lowers the unemployment rate, based on evidence from a panel of Finnish regions. However, reorganization is shown to be unrelated to long-term unemployment.
The aim of this study is to explore the structure and the dynamics of regional labour markets in terms of gross job and worker flows. The regional turnover rates are related to macroeconomic indicators, demographic factors and industry-structure by employing the data of 85 Finnish regions over the period of 1988–1997. The results imply that different factors can have similar effects on net changes in employment and unemployment by various means of affecting gross changes.
The study explores the empirical determination of perceived job instability in European labour markets. The study is based on the large-scale survey from the year 1998 covering the 15 member states of the European Union and Norway. There are evidently large differences in the amount of perceived job instability from country to country. The lowest level of perceived job instabity is in Denmark (9%). In contrast, the highest level of perceived job instability is in Spain (63%). The results show that perceived job instability increases with age. Educational level, on the other hand, does not correlate strongly with the perception of job instability. There are no differences in the perceptions of job instability between males and females. An occurrence of unemployment during the past five years yields a substantial rise in the perception of job instability. The empirical finding that unemployment history strongly matters for the perception of job instability is consistent with the notion that an unemployment episode provides otherwise private information about unobservable productivity of an employee. The most striking result is that a temporary contract as such does not yield an additional increase to the perception of job instability at the individual level of the economy. However, the perception of job instability is more common within manufacturing industries. In addition, the perception of job instability by employees increases according to the size of the firm. There are also strong country effects.
How has Income Inequality and Wage Disparity Between Native and Foreign Sub-p...Dinal Shah
This study uses repeated cross-sectional data from 2007 to 2015 to examine in
detail what impact the 2008 recession had on income inequality and wage disparity
in the UK and on its sub-populations. The findings suggest inequality in the UK has
been decreasing since 2007, but that the foreign sub-population experiences a
greater degree of inequality than the native sub-population. Additionally, foreign and
native labour are imperfect substitutes where the wages of foreign workers are
greatly more susceptible to economic shocks effecting the UK’s labour market. To
the best of my knowledge this is the first paper to conduct research into income
inequality between native and foreign workers.
This study examines factors that influence sickness absenteeism and presenteeism using survey data from 725 Finnish union members in 2008. The study finds that presenteeism is much more sensitive to working time arrangements than absenteeism. Permanent full-time work, mismatch between desired and actual working hours, shift/period work, and overlong weekly working hours increase the likelihood of presenteeism. Regular overtime decreases absenteeism but increases presenteeism. The ability to take 3 days of paid sick leave without a doctor's note and easing of efficiency demands decrease presenteeism. Presenteeism is more common in the public sector and among those in shift/period work.
Tutkimuksessa tarkastellaan ammattirakenteiden polarisaatiota sekä sitä, että mihin supistuvissa ja rutiininomaisissa ammateissa olevat työntekijät päätyvät hyödyntämällä kokonaisaineistoa vuosille 1970-2014. Ammattirakenteiden polarisaatio on jatkunut Suomessa jo vuosikymmeniä. Ammattirakennemuutoksen kehityskulku on pääosin tapahtunut siten, että keskitason tuotanto- ja toimistotyöntekijät ovat nousseet urapolkuja pitkin asiantuntijatöihin. Viimeaikaista palveluammattien osuutta on puolestaan kasvattanut se, että nuoret siirtyvät työmarkkinoille palvelutöihin. Rutiininomaisia ja kognitiivisia taitoja vaativien ammattien työntekijöillä on kuitenkin suurempi todennäköisyys nousta korkeammille palkkaluokille rutiininomaista ja fyysistä työtä tekeviin työntekijöihin verrattuna. Rutiininomaista ja fyysistä työtä tekevät tippuvat puolestaan suuremmalla todennäköisyydellä matalapalkka-aloille, ja heidän ansiotason kehitys on myös heikompaa.
This document analyzes factors that contribute to the gender pay gap. It discusses how previous research has focused on gender-specific factors like differences in qualifications and labor market discrimination against equally qualified men and women. It argues that an additional important factor is wage structure, which describes how much different skills and sectors are paid. The document presents evidence that wage structure significantly impacts international and time trends in gender pay differentials. While qualifications and discrimination play a role, wage structure is important to also consider in understanding the gender pay gap.
Existing evidence of inequality aversion relies on data from class-room experiments where subjects face hypothetical questions. This paper estimates the magnitude of inequality aversion using representative survey data, with questions related to the real-economy situations the respondents face. The results reveal that the magnitude of inequality aversion can be measured in a meaningful way using survey data, but the estimates depend dramatically on the framing of the question. No matter how measured, the revealed inequality aversion predicts opinions on a wide range of questions related to the welfare state, such as the level of taxation, tax progressivity and the structure of unemployment benefits.
A Quantile Based Decomposition Of The Black White Wage GapNola Ogunro
This paper examines differences in the black-white wage gap across the wage distribution using two measures of labor market experience. When experience is measured as cumulative years worked, returns to experience decline for whites but remain constant for blacks across the distribution. When a detailed work history is used, returns to recent experience are constant for both groups but higher for whites. The paper then uses quantile regressions and counterfactual distributions to decompose the wage gap. Differences in characteristics and returns both contribute to the gap, with characteristics explaining more of the gap at the top and returns explaining more at the bottom.
This paper investigates the links between a number of subjective measures of worker wellbeing and within establishment wage dispersion. These may be linked either because wage dispersion influences the way in which individuals perceive their own relative and prospective income or because they are concerned about fairness in general. The analysis is based on a data set where the Quality of Work Survey is matched with register-based information on individuals and establishments. The results show that there is no significant overall association. Some significant relationships, however, can be found if the method of pay is assumed to be performance pay that is based on individual or group performance. The results also suggest that the question as to whether wages are public knowledge can be of importance.
This document summarizes a research paper that studied determinants of income inequality using top income share data from 16 countries over the 20th century. The paper finds that periods of high economic growth disproportionately increase the income share of the top 1% while reducing the share of the next 9%. Financial development also increases top shares, especially in early stages of development. Government spending reduces shares for the upper middle class but not the top 1%. Higher taxes reduce top shares significantly over the long run. Trade openness has no clear effect on inequality.
Similar to Gender Wage Differentials in the Finnish Labour Market (20)
Talous & Yhteiskunta -lehden numero 4/2019 sisältää artikkeleita ja haastattelun, jotka kertovat alueellista keskittymistä käsitelleistä tutkimuksista. Suomen seitsemän suurimman kaupunkiseudun väestö kasvaa nopeimmin, kun taas pienempien kaupunkien ja maaseudun väestöosuus supistuu. Muutos on kuitenkin verrattain hidasta, ja sille on myös vastavoimia.
Talous & Yhteiskunta -lehden numeron 3/2019 teemana on työ ja terveys. Artikkeleissa tarkastellaan Suomen terveydenhuoltojärjestelmän toimivuutta ja pohditaan mitä voitaisiin oppia Ruotsissa jo tehdyistä terveydenhuollon uudistuksista. Muissa artikkeleissa käsitellään terveyskäyttäytymisen ja työmarkkinamenestyksen yhteyttä, työttömien aktivointia, työikäisten eritasoisia terveyspalveluja, työaikajoustojen vaikutusta terveyteen sekä informaatioteknologian ja tekoälyn käyttöä mielenterveyspalvelujen tukena. Haastateltavana on THL:n tutkimusprofessori Unto Häkkinen. Hänen mielestään sote-uudistus on tehtävä, vaikka se vaatiikin vielä monen yksityiskohdan ratkaisemista.
Opiskelijavalinta ylioppilaskirjoitusten nykyarvosanojen perusteella ei ole täysin perusteltua, todetaan Aalto-ylipiston ja Palkansaajien tutkimuslaitoksen uudessa tutkimuksessa. Ylioppilaskirjoitusten arvosanoilla on pitkän ajan vaikutuksia. Hienojakoisempi arvosteluasteikko tekisi opiskelijavalinnasta nykyistä reilumman.
Esimerkkiperhelaskelmissa tarkastellaan seitsemää kotitaloutta. Laskelmat kuvaavat ansiotulojen, tulonsiirtojen sekä verojen ja veronluonteisten maksujen kehityksen vaikutusta perheiden ostovoimaan. Perheille lasketaan Tilastokeskuksen tietoihin perustuvat perhekohtaiset kulutuskorit, jotka mahdollistavat perhekohtaisten inflaatiovauhtien ja reaalitulokehitysten arvioinnin. Ensi vuonna eläkeläispariskunnan ostovoima kasvaa eniten ja työttömien vähiten. Esimerkkiperhelaskelmia on tehty Palkansaajien tutkimuslaitoksella vuodesta 2009 lähtien.
Palkansaajien tutkimuslaitos ennustaa Suomen talouskasvuksi tänä vuonna 1,3 prosenttia ja ensi vuonna 1,1 prosenttia. Kasvua hidastaa eniten yksityisen kulutuksen kasvun hidastuminen. Toisaalta vienti kasvaa tänä vuonna hieman ennakoitua nopeammin, neljä prosenttia, ja ensi vuonnakin vielä kaksi prosenttia. Tuotannollisten investointien kasvu jatkuu maltillisena, mutta rakentamisen vähentyminen kääntää yksityiset investoinnit kokonaisuutena pieneen laskuun ensi vuonna. Hallituksen vuoteen 2023 mennessä tavoittelemien 75 prosentin työllisyysasteen ja julkisen talouden tasapainon toteutumista on vaikea arvioida, koska nämä tavoitteet on määritelty rakenteellisina ja niiden eri arviointimenetelmät saattavat tuottaa hyvin erilaisia tuloksia.
Suomen palkkataso oli 2015 ylempää eurooppalaista keskitasoa. Suomen suhteellinen asema ei ole juurikaan muuttunut 2010-luvun alun tilanteesta. Hintatason huomioiminen kuitenkin heikentää asemaamme palkkavertailussa. Palkkaerot meillä olivat vertailumaiden pienimpiä ja pysyivät melko samalla tasolla koko tarkastelujakson 2007–2015 ajan. EU-maissa havaittiin erisuuntaista kehitystä palkkaeroissa. Suurin osa palkkojen kokonaisvaihteluista selittyi taustaryhmien sisäisillä palkkaeroilla.
Suomessa toteutettiin vuonna 2005 laaja eläkeuudistus, jossa vanhuuseläkkeen alaikärajaa laskettiin. Tutkimuksessa havaitaan, että ikärajan lasku aikaisti eläkkeelle jäämistä. Kun alaraja laskettiin 65:stä 63:een, myös yleinen eläköitymisikä laski. Taloudellisten kannustimien muutosten vaikutukset eläköitymiseen jäivät paljon heikommiksi alaikärajan muuttamiseen verrattuna. Eläköitymisikään voidaan siis vaikuttaa tehokkaasti ja vähäisin kustannuksin lakisääteistä eläkeikää muuttamalla.
Talous & Yhteiskunta -lehden numeron 2/2019 artikkelit ja haastattelu kertovat tutkimuksista, joita on tehty Suomen Akatemian strategisen tutkimuksen neuvoston hankkeessa "Osaavat työntekijät - menestyvät työmarkkinat". Keskeinen kysymys on, miten sopeudutaan teknologisen kehityksen mukanaan tuomaan työn murrokseen.
Palkansaajien tutkimuslaitos on alentanut Suomen talouskasvun ennustettaan kuluvalle vuodelle viimesyksyisestä 2,3 prosentista 1,4 prosenttiin. Kansainvälisen talouden näkymien epävarmuus hidastaa Suomen talouskasvua etenkin kuluvana vuonna. Jos pahimmat uhkakuvat jäävät toteutumatta, kasvu piristyy ensi vuonna hivenen 1,5 prosenttiin. Viime vuonna pysähtynyt viennin kasvu elpyy, ja myös yksityisen kulutuksen kasvu tukee talouskasvua. Suomi on sopeutunut ammattirakenteiden murrokseen yleisesti ottaen hyvin, mutta etenkin perusasteen koulutuksen varassa olevien varttuneiden työntekijöiden työllistämiseen voi olla vaikea löytää työkaluja.
The Labour Institute for Economic Research has lowered its forecast of Finland’s economic growth for the current year from last autumn’s 2.4 per cent to 1.4 per cent. Uncertainty in the international economic outlook will slow Finland’s economic growth, particularly this year. If the worst threats do not materialise, growth will pick up slightly next year to 1.5 per cent. Export growth, which came to a halt last year, will recover and growth in private consumption growth will also provide support to economic growth. In general, Finland has adjusted well to occupational restructuring, but it may be difficult to find means to employ older workers who only have basic education.
Palkansaajien tutkimuslaitos on alentanut Suomen talouskasvun ennustettaan kuluvalle vuodelle vii-mesyksyisestä 2,3 prosentista 1,4 prosenttiin. Kansainvälisen talouden näkymien epävarmuus hidastaa Suomen talouskasvua etenkin kuluvana vuonna. Jos pahimmat uhkakuvat jäävät toteutumatta, kasvu piristyy ensi vuonna hivenen 1,5 prosenttiin. Viime vuonna pysähtynyt viennin kasvu elpyy, ja myös yksityisen kulutuksen kasvu tukee talouskasvua. Suomi on sopeutunut ammattirakenteiden murrokseen yleisesti ottaen hyvin, mutta etenkin perusasteen koulutuksen varassa olevien varttuneiden työntekijöiden työllistämiseen voi olla vaikea löytää työkaluja.
Tämä PT Policy Brief tuo esiin havaintoja Suomen tuloerojen kehityksestä 1990-luvun puolivälin jälkeen. Tällä ajanjaksolla tuloerot ovat kasvaneet. Aluksi kasvu oli hyvin nopeaa, kunnes kehitys tasaantui finanssikriisin myötä. Tämä näkyy tarkasteltaessa kehitystä viiden vuoden ajalta lasketuissa keskituloissa. Taloudessa on tuloliikkuvuutta, ts. tulot vaihtelevat vuodesta toiseen. Havaitsemme, että liikkuvuus tuloportaikossa on vähentynyt. Samalla kun tuloerot ovat kääntyneet kasvuun, on tuloverotuksen progressiivisuus alentunut. Valtion tuloveron alennusten ohella tähän on erityisesti tulojakauman huipulla vaikuttanut pääomatulojen voimakas kasvu.
Julkisen budjetin sopeuttamistoimia toteutetaan usein etuuksien indeksileikkauksina tai tuloverojen korotuksina. Näillä toimenpiteillä on tulonjako- ja työllisyysvaikutuksia. Tämä PT Policy Brief esittää SISU-mallilla lasketut vaikutukset käytettävissä oleviin tuloihin tuloluokittain, jos valtion tuloveroasteikkoa korotettaisiin 0,4 prosenttiyksiköllä tai jos kansaneläkeindeksiä leikattaisiin. Molemmissa toimenpiteissä budjetti vahvistuisi 180 miljoonalla eurolla mutta tulonjakovaikutukset ovat huomattavan erilaiset. Oheisen kuvion mukaisesti indeksileikkaukset kohdistuvat voimakkaasti alempiin tulonsaajakymmenyksiin, kun taas tuloveron korotukset kohdistuvat ylempiin kymmenyksiin. Kun huomioidaan muutosten aiheuttamat työllisyysvaikutukset, kokonaiskuva muuttuu vain hieman.
Makeisvero otettiin käyttöön makeisille ja jäätelölle vuoden 2011 alusta. Virallinen perustelu oli kerätä verotuloja, mutta poliittisessa keskustelussa selvä tavoite oli ohjata kulutusta terveellisempään suuntaan. Makeisvero nosti selvästi makeisten kuluttajahintoja, mutta se ei vaikuttanut makeisten kysyntään. Toisaalta vuonna 2014 virvoitusjuomavero nousi sokerillisille juomille, mutta sokerittomat juomat jäivät alemmalle verotasolle. Tämä muutos alensi sokerillisten juomien kulutusta ja ohjasi kulutusta sokerittomiin juomiin. Onnistunut terveellisiin tuotteisiin ohjailu näyttääkin vaativan riittävän läheisen terveellisempien tuotteiden ryhmän olemassaolon.
Talous & Yhteiskunta-lehden "Suuren vaalinumeron" 1/2019 jutut käsittelevät aiheita, jotka voivat nousta esille kevään vaalikeskusteluissa. Pääpaino on ilmastonmuutoksessa: haastateltavana on Maailman ilmatieteen järjestön pääsihteeri Petteri Taalas, ja kahdessa eri artikkelissa pohditaan metsien hiilinielujen ja yhdyskuntarakenteen merkitystä pyrittäessä hillitsemään ilmaston lämpenemistä. Muut artikkelit käsittelevät tuloerojen kasvua, sotea, eläkkeiden riittävyyttä, maahanmuuttajien työllistymistä, EMUn uudistamista, eurooppalaista palkkavertailua ja kestävyysvajeen sopimattomuutta talouspolitiikan suunnitteluun.
Raportissa tehdään laskelmia korkeakouluopiskelijoille suunnatun opintotuen tulorajojen muutosten vaikutuksista. Opintotuen tulorajojen tavoite on, että suurituloisille opiskelijoille ei makseta opintotukea. Samalla nykyiset tulorajat kuitenkin estävät opiskelijoita tienaamasta niin paljon kuin he haluaisivat. Laskelmissa hyödynnetään simulaatiomallia, jonka avulla voidaan arvioida miten opiskelijoiden tulojakauma muuttuisi eri vaihtoehtoisissa opintotuen tulorajojen muutoksissa. Tulosten mukaan nykyisiä tulorajaoja voisi nostaa esimerkiksi 50 prosentilla, jolloin yhdeksän kuukauden ajan opintotukea nostavan opiskelijan vuosituloraja olisi 18 000 euroa nykyisen noin 12 000 euron sijaan. Laskelmien mukaan tällöin päästäisiin opintotuen nykyisten tulorajojen haitallisista tulovaikutuksista laajasti ottaen eroon, koska vain harva opiskelija tienaisi tätä tulorajaa enempää. Ottaen huomioon verotulot ja tulonsiirrot tämä vaihtoehto lisäisi julkisyhteisöjen nettotuloja arviolta 5,9 miljoonaa euroa vuodessa.
Tässä tutkimuksessa tutkitaan diskreettien valintajoukkojen vaikutusta palkansaajien työn tarjonnan reagoimiseen tuloveroihin. Artikkelin empiirisessä osiossa hyödynnetään opintotuen tulorajojen aiheuttamaa tuloveroissa tapahtuvaa äkillistä nousua, ja reformia, jossa tulorajoja nostettiin. Tulosten mukaan vuoden 2008 reformi, jossa tulorajaa nostettiin 9 opintotukikuukautta nostaneille 9000 eurosta 12000 euroon, aiheutti merkittäviä muutoksia opiskelijoiden tulojakaumassa. Tulojakauma siirtyi korkeammalle tasolle lähtien noin 2000 euron tuloista. Koska opiskelijoiden verojärjestelmässä ei tapahtunut muutoksia näin alhaisella tasolla vuoden 2008 reformissa, eivät työn taloustieteen normaalit mallit pysty selittämään tätä siirtymää. Artikkelissa esitetään empiirisiä lisätuloksia, teoreettisia argumentteja ja simulaatiomalli, jotka kaikki viittaavat siihen, että tuloksen pystyy selittämään diskreettien valintajoukkojen mallilla. Lisäksi artikkelissa esitetään, että verotuksen hyvinvointitappiot voivat olla suuremmat kuin empiirisesti estimoidut, jos valintajoukot ovat diskreettejä, mutta niiden ajatellaan olevan jatkuvia.
Talous & Yhteiskunta -lehden uuteen numeroon sisältyy artikkeleita veropohjasta ja -vajeesta, liikenteen veroista, naisista tulojakauman huipulla, työllisyyden kasvusta, mikrosimulaatiomalleista ja digitalisaatiosta. Lehdessä on myös Helsingin yliopiston professori Uskali Mäen haastattelu, jossa käsitellään tieteenfilosofista näkökulmaa taloustieteeseen.
Tutkimuksessa rakennettiin uusia makrotaloudellisia malleja PT:n ennustetyötä varten. Malleilla tehtiin ennusteita vuosille 2017 ja 2018. Mallien BKT-ennuste vuodelle 2017 on 3,1 prosenttia (vrt. toteutunut 2,8 prosenttia) ja vuodelle 2018 1,8 prosenttia (vrt. PT:n 11.9 ennuste 2,7 prosenttia).
The boom becomes less pronounced but continues. This year, the growth of exports will not reach the peak figures of last year but the growth will to some extent pick up speed again in next year. The quickly decreased unemployment rate will continue to drop. An analysis of long-term employment growth by age group shows that positive employment growth is concentrated on the one hand on younger employees and, on the other hand, older employees, whereas the employment rate of men aged 25–34 is growing smaller. The government budget policy is too expansive, given the economic situation.
Presentation by Rebecca Sachs and Joshua Varcie, analysts in CBO’s Health Analysis Division, at the 13th Annual Conference of the American Society of Health Economists.
Jennifer Schaus and Associates hosts a complimentary webinar series on The FAR in 2024. Join the webinars on Wednesdays and Fridays at noon, eastern.
Recordings are on YouTube and the company website.
https://www.youtube.com/@jenniferschaus/videos
The Antyodaya Saral Haryana Portal is a pioneering initiative by the Government of Haryana aimed at providing citizens with seamless access to a wide range of government services
Contributi dei parlamentari del PD - Contributi L. 3/2019Partito democratico
DI SEGUITO SONO PUBBLICATI, AI SENSI DELL'ART. 11 DELLA LEGGE N. 3/2019, GLI IMPORTI RICEVUTI DALL'ENTRATA IN VIGORE DELLA SUDDETTA NORMA (31/01/2019) E FINO AL MESE SOLARE ANTECEDENTE QUELLO DELLA PUBBLICAZIONE SUL PRESENTE SITO
Indira awas yojana housing scheme renamed as PMAYnarinav14
Indira Awas Yojana (IAY) played a significant role in addressing rural housing needs in India. It emerged as a comprehensive program for affordable housing solutions in rural areas, predating the government’s broader focus on mass housing initiatives.
4. Gender wage differentials in the Finnish labour
market∗
Juhana Vartiainen
March 4, 2002
Abstract
A comprehensive analysis of the gender wage differential among Finnish full time
employees is reported. Oaxaca decompositions show that the the overall wage gap of
about 21.5 per cent cannot be accounted for by individual characteristics, since age and
educational qualifications are rather similar for men and women. When industry and occu-
pational qualifications are included in the regressor matrix, the unexplained part shrinks to
about 50 per cent of the gross differential. An even larger part of the gross differential can
be explained in sector-specific analyses with a dense set of occupational dummies. In a
less standard part of the analysis, we characterise the distribution of the unexplained wage
gap across the variable space. It turns out the women with a high wage predictor, that is,
women with good educational qualifications in well-remunerated occupations, drag the
most behind their male colleagues endowed with similar characteristics. JEL numbers
J31, J70, J71.
Tiivistelmä
Sukupuolten palkkaero on kokopäiväisten palkansaajien parissa noin 20 prosenttia eli
naiset ansaitsevat osapuilleen neljä viidesosaa miesten ansioista. Artikkelissa analysoidaan
taloustieteen keinoin tätä palkkaeroa. Se on yhteenveto laajemmasta tutkimusraportista
∗
This paper summarises some results of the project “Measuring and monitoring gender wage differentials in
the Finnish labour market”, commissioned by the Ministry of Social Affairs and Health and carried out by the
author. The objective of the project was to present a comprehensive survey of the gender wage differential in the
Finnish labour market as well as to suggest statistical procedures that could be used for a more regular monitoring
of the gender wage gap. A longer report in Finnish (55 pages of main text plus a 249-page statistical annex) is
available (see Vartiainen (2001)). In that report, a more comprehesive set of sector-specific statistics is presented.
I am grateful to Equality Ombudsman Pirkko Mäkinen and Research Officer Anita Haataja for sponsoring and
supporting this research. I am grateful to Reija Lilja for useful comments. I also want to thank the various
employers’ organisations who made possible the use of their sector-specific wage databases, as well as Statistics
Finland, whose co-operation has been primordial. Any errors or weaknesses are my own, of course. Author’s
affiliation and e-mail: Labour Institute for Economic Research, Helsinki. juhana.vartiainen@labour.fi
3
5. (Vartiainen 2001), jonka pyrkimyksenä oli kartoittaa kattavasti sukupuolten palkkaeroa
Suomessa sekä ehdottaa tilastointi- ja seurantatapoja, jolla tätä eroa voitaisiin vastaisuu-
dessa seurata. Tulokset osoittavat, että mainitusta 20 prosentin palkkaerosta selittyy pois
noin puolet, jos selittäjinä käytetään henkilökohtaisia muuttujia sekä toimialoille ja am-
mattiryhmiin valikoitumista. Sukupuolten välillä ei ole merkittävää eroa iässä ja koulutuk-
sessa, joten palkkaeron selittyvä osa perustuu toimiala- ja ammattiryhmävalikoitumiseen.
Samanlainen hajoitelma lasketaan myös talouden viidelle sektorille (palvelutyönantajat,
teollisuuden tuntipalkkaiset, teollisuuden kuukausipalkkaiset, kunnat, valtio) erikseen.
Tulokset osoittavat, että julkisyhteisöjen parissa toteutuu pitkälti “sama palkka samasta
työstä” -periaate, ja lopullinen palkkaero syntyy lähes kokonaan naisten ja miesten am-
mattiryhmävalikoitumisen kautta.
Teollisuuden piirissä ammatteihin valikoituminen ei ole yhtä merkittävä sukupuolten
palkkaeron taustatekijä, mutta iän palkkaa nostava vaikutus on naisilla selvästi vähäisempi
kuin miehillä.
Artikkelissa tarkastellaan myös selittymättömän palkkaeron jakautumista eri palkkata-
soille. Selittymätön palkkakaula on suurempi korkean palkkatason tehtävissä kuin matala-
palkkatehtävissä. Sukupuolten ammatillista segregoitumista kuvaavat indeksit osoittavat
segregoitumisen hidasta heikkenimistä.
4
7. 1 Introduction
This paper presents the most important stylised facts about the gender wage differential in the
Finnish economy. We characterise the differential in two ways. The first is a standard one: we
use an Oaxaca decomposition (see Oaxaca (1973)) of the log of the monthly wage and present
the decomposition results. The results are presented both with and without an occupational
dummy variable, and, in both cases, using both the male and female parameter estimates as the
reference structure. The estimates are based on a 20 per cent sample of the Earnings Database
(“palkkarakennetilasto”) produced and maintained by Statistics Finland. This database covers
almost the entire salaried workforce of the economy. Our study concerns the wages of full-time
workers and employees.
The first decompositions exploit the entire sample. The data are then decomposed into sub-
sets: service sector, manufacturing (salaried employees and wage earners paid by the hour are
treated separately), local government and central government. Oaxaca decomposition results
are presented for these subsets as well.
The second set of results is more original. The Oaxaca decomposition reveals the average
unexplained wage gap between sexes but nothing about its distribution. Yet, from the point of
view of society’s welfare and gender equality, it is quite interesting to ask how that unexplained
wage gap is distributed in different parts of the variable space. Most studies of the wage
differential do not appreciate this point, with the exception of Stephen Jenkins who has in an
interesting way applied the ideas familiar from the theory of income distribution to the study
of group differentials (see Jenkins (1994)). However, since the aim of this paper is to get out
the most important stylised facts, we adopt a far simpler procedure, described in more detail
in section 4.
2 Data
We exploit the Earnings Structure Database maintained by Statistics Finland. It is based on a
compilation of wage registries kept by various employer organisations and comprises about 1.3
million wage-earners. The variables include a detailed breakdown of earnings variables plus
background variables like age and schooling, together with industrial sector and occupational
dummies. We sampled a 20 per cent subset of that database, so that the probability of selection
into the sample was proportional to the sampling weight used by Statistics Finland; by these
means, we sought to emulate simple random sampling as fully as possible.
The variable of interest is monthly wage income as computed by Statistics Finland. That
variable has been computed by dividing all wage and salary incomes of the individual by
his/her total working hours, both measured under a month. The aim has been to include all
such wage items that have some continuity: the base wage, extras and bonuses based on work-
ing conditions, eventual extra pay due to overtime and the value of perks. Similarly, the de-
nominator was an estimated total labour input as measured in time units.
6
8. We excluded all part-time employees from our analysis. This was motivated by the will
to compare men and women who would be as similar as possible. The inclusion of part-time
work would point the way to another kind of analysis in which the differential labour supply
decisions of men and women would play a more central role.
3 The Oaxaca decomposition
3.1 Definition
The Oaxaca decomposition was presented in (Oaxaca, 1973), and we follow his procedure. If
the male and female geometric mean wages are denoted by WM and WF , we can decompose
the log-differential of geometric means as follows:
∆ ≡ log(WM /WF ) = (log(WM ) − logW0F ) + (log(W0F ) − logWF ), (1)
in which we denote by W0F a hypothetical distortion-free or discrimination-free mean wage
for women. Furthermore, we can summarise the variation in the male and female wage cross
section samples by using the following commonplace statistical models:
wi,m = Xi
βM
+ i (2)
and
wj,f = Xj
βF
+ j (3)
in which wi,m is the log wage of man i and wj,f is the log wage of woman j, βM
and βF
are
the coefficients that determine the effect of characteristics on pay and the Xi
and Xj
are the
vectors of characteristics of man i and woman j. Taking the arithmetic average of equations
(2) and (3), the stochastic -terms drop away. Designating arithmetic mean by an underlined
variable, we have
wm = XM
βM
(4)
and
wf = XF
βF
, (5)
which simply says that mean wages are predicted by using mean characteristics. Since w is
the mean of the log, it is the log of the geometric mean W. We can then plug equations (4) and
(5) into (1) to obtain:
∆ = (XM
− XF
)βM
+ XF
(βM
− βF
). (6)
7
9. Thus, the gross differential ∆ is decomposed into the effect of differences in average char-
acteristics (the first term) and the effect of different treatment (or different “pricing”) of char-
acteristics. In this paper, we shall speak of the contribution of different characteristics on the
one hand and of the unexplained differential or “differential pricing” effect on the other.
The literature often speaks roughly of the latter part as “discrimination”, but this is a du-
bious usage of words. The unexplained part contains the effects of all those variables that are
not part of the X-matrix; economic theory suggests many ways in which unobserved variables
may be differently distributed across men and women and may thereby contribute to the wage
differential as well. If there is outright discrimination in wage-setting, it is probably a part of
the unexplained component.
In the above decomposition, we implicitly chose the male coefficient vector as a reference
structure with which we evaluated (i.e. “priced”) the contribution of the differences in char-
acteristics. We could equally well choose the female wage structure and get the analogous
decomposition
∆ = (XF
− XM
)βF
+ XM
(βF
− βM
). (7)
In the subsequent literature, it has been emphasised that there is in general no unambiguou-
osly best way to choose the reference wage structure (this is really an index number problem).
Ideally, if we knew a “right”, discrimination-free structure β, we should use it to evaluate the
effect of differences in characteristics. Some authors use the coefficients estimated from the
pooled sample (without female dummy) as the reference structure.
More generally, the reference structure can be chosen as a matrix weighted average of the
male and female β-vectors (see Oaxaca and Ransom (1994)). The choice of the weighting
matrix should be guided by economic theory, but the literature on this issue is still quite rudi-
mentary. We have therefore chosen simply to present the computations using both male and
female coefficients as reference. The advantage of this procedure is that it enables a clear
interpretation: using the male (female) structure as reference and computing the effect of dif-
ferent characteristics yields an answer to the question “how much would remain of the gross
differential if women (men) were treated as men (women) with similar characateristics?”.
Note that the above decompositions can be expanded to yield the contributions of each
single regressor: how much of the gross differential is due to the gender difference in means
of the regressor and how much is due to differential pricing of the regressor. This interpre-
tation runs into trouble when we include categorical variables in the regressor matrix X. As
is shown in Oaxaca and Ransom (1999), the presence of categorical variables implies that the
unexplained part (i.e. the “differential pricing”) part of each categorical variable cannot be
uniquely determined. This is intuitively clear, since the regression of wages on categorical
variables implies a choice of a reference group, and the results of the Oaxaca decomposition
are not independent of this choice. The combined “differential pricing” contribution of all the
within-cell unexplained gaps can be uniquely computed, however, and we shall report that in
our tables.
8
10. Table 1: Decomposition for 1998, male reference coefficients.
Variable Difference in characteristics Differential pricing Sum
constant n.u n.u
temporary .0047 n.u n.u
education .0135 n.u n.u
employer size .0028 n.u n.u
constant plus selection .0209 .2163 .2372
age in years -.0416 -.1788 -.2204
age squared .0268 .1543 .1811
n. of children under 18 .0017 .0198 .0215
n. of children under 7 -.0003 -.0008 -.0011
Sum total .0074 .2109 .2148
st.dev .0016 .0015 ass=0
Table 2: Decomposition for 1998, female reference coefficients.
Variable Difference in characteristics Differential pricing Sum
constant n.u. n.u.
temporary .0032 n.u n.u
education -.0025 n.u n.u
employer size .0017 n.u n.u
constant plus selection .0025 .2348 .2372
age in years -.0489 -.1715 -.2204
age squared .0379 .1432 .1811
n. of children under 18 -.0015 .023 .0215
n. of children under 7 .0001 -.0012 -.0011
Sum total -.0099 .2282 .2148
st.dev .0013 .0014 ass=0
3.2 Results for all employees
The decompositions were computed for years 1996 through 1998. We focus on the last year,
since the results for years 1996 and 1997 are largely similar. The following four tables display
the results of decomposition (6) for year 1998. The first two tables are based on a regression
matrix X that contains the personal characteristic variables age and education as well as the
employer size.
9
11. The tables are read as follows. The cell at the low-end right-end corner (at the intersection
of row “Sum total” and column “Sum” tells the gross log wage differential (21.48 in Table 1,
for example). The two entries on the same row display the two terms of decomposition (6); the
first one is the effect of differences in characteristics and the second one is the unexplained or
differential pricing component. The other rows above that final row tell the same information
for different variables. The first group of variables (above the first horizontal double line)
is the group of categorical variables. For those ones, one can only compute the effect of the
difference in means in an unambiguous way; the pricing effect is reported as the aggregate sum
of the within-cell unexplained gaps (the abbreviation “n.u” stands for “not unique”). This is
reported on the row “constant plus selection”. The second group of variables are the continuous
ones: age, age squared and the number of children. Finally, the row “Sum total” adds up all
the contributions.
Tables 1 and 2 make it clear that personal characteristics plus firm size do not go far in
explaining the wage differential. Of the overall differential of 21.5 percentage points, almost
nothing is explained by differences in individual characteristics and employer size. Almost
all of the wage differential is due to a constant term that we cannot allocate to any specific
categorical variable.
The next two tables 3 and 4 show the analogous results when an occupational variable1
plus a sector variable2
(“industry”) are added to the regressor matrix. We see now that about
half of the gross wage differential can be accounted for by different endowments when male
coefficients are used, and about one third when female coefficients are used. The tables show
that the “industry” variable and the “occupation” variable together generate the explained part
of about 10 percentage points.
1
This is the “isco” -variable produced and used by Statistics Finland.
2
The “nace” variable of Statistics Finland.
10
12. Table 3: Decomposition for 1998, male reference coefficients.
Variable Difference in characteristics Differential pricing Sum total
constant n.u n.u
temporary .0029 n.u n.u
occupation .0522 n.u n.u
industry .0582 n.u n.u
education .0097 n.u n.u
employer size .0028 n.u n.u
constant plus selection .1258 .0526 .1784
age in years -.0344 .0072 -.0272
age squared .0236 .0267 .0503
n. of children under 18 .0013 .0141 .0154
n. of children under 7 -.0005 .0007 .0002
Sum total .1158 .1013 .2145
st.dev .0029 .0029 ass=0
Table 4: Decomposition for 1998, female reference coefficients.
Variable Difference in characteristics Differential pricing Sum total
constant n.u. n.u.
temporary .0027 n.u n.u
occupation .0461 n.u n.u
industry .0328 n.u n.u
education .0016 n.u n.u
employer size .001 n.u n.u
constant plus selection .0842 .0942 .1784
age in years -.0341 .0069 -.0272
age squared .0255 .0248 .0503
n. of children under 18 -.0009 .0163 .0154
n. of children under 7 -.0009 .0011 .0002
Sum total .0739 .1432 .2145
st.dev .0026 .0027 ass=0
We also see that only age, industry and occupation play a role in the generation of the
gender wage differential. The differential treatment effect of children accounts for a couple
of percentage points; thus, children lead to a somewhat higher wage handicap for women, but
this effect is quite weak in comparison with other effects.
11
13. Table 5: Decomposition for 1998, private services.
Variable Difference in characteristics Differential pricing Sum
constant n.u n.u
temporary .0016 n.u n.u
occupation (detailed) .1467 n.u n.u
industry .0204 n.u n.u
education .0137 n.u n.u
employer size -.0038 n.u n.u
constant plus selection .1786 -.0292 .1494
share of extra hours .0027 -.0028 -.0001
age in years -.0533 .1201 .0668
age squared .0358 .0038 .0396
n. of children under 18 .002 .0195 .0215
n. of children under 7 -.0011 -.0015 -.0026
Sum .1647 .1099 .2724
st.dev .0063 .0061 ass=0
3.3 Results for specific sectors
The following tables exhibit similar decompositions for five subsets of the salaried labour
force3
:
- private service sector;
- salaried employees of the manufacturing industry (monthly pay)
- wage earners of the manufacturing industry (pay by hour)
- local government workers
- central government workers.
To save space, we report only those computations that used male reference coefficients and
included the widest set of explanatory variables. In particular, it should be emphasised that the
estimations on which the following tables are based included a sector-specific occupational
classification which is in general denser than the general occupational classification used for
the estimates reported for the entire workforce.
Furthermore, the number of occupational classes varies from sector to sector; it is very
large for local and central government workers, fairly large for manufacturing wage-earners
and private service sector employees and quite low for manufacturing salaried employees. As
expected, this is reflected in the share of the gender wage differential that can be ascribed to
differential endowments4
.
3
In the data base, these subsets are formed by the institutional affiliation of the person’s employer. The Finnish
designations for these groupings are “Palvelutyönantajat”, “Teollisuuden kuukausipalkkaiset”, “Teollisuuden tun-
tipalkkaiset”, “Kunnat”, “Valtio”.
4
Thus, as was already emphasised by Ronald Oaxaca in his original contribution of Ronald Oaxaca (1973),
the use of occupational dummies is controversial. In the limit, as all individuals have a somewhat unique job, we
could explain away the entire wage differential by occupational categories.
12
14. Table 6: Decomposition for 1998, manufacturing, salaried employees.
Variable Difference in characteristics Differential pricing Sum
constant n.u n.u
temporary .0035 n.u n.u
occupation (detailed) .1121 n.u n.u
industry -.0047 n.u n.u
education .0437 n.u n.u
employer size -.0016 n.u n.u
constant plus selection .1529 -.0393 .1137
share of extra hours .0071 -.0011 .006
age in years .0158 .1318 .1476
age squared -.0122 .0349 .0227
n. of children under 18 .0021 .0191 .0212
n. of children under 7 -.0006 -.0007 -.0013
work experience -.001 .0081 .0071
Sum .1643 .1529 .3172
st.dev .0078 .0078 ass=0
Table 7: Decomposition for 1998, manufacturing, wage earners.
Variable Difference in characteristics Differential pricing Sum
constant n.u n.u
temporary -.001 n.u n.u
occupation (detailed) .0233 n.u n.u
industry .0225 n.u n.u
education .0048 n.u n.u
employer size -.0041 n.u n.u
constant plus selection .0454 -.0853 -.0399
share of extra hours .0178 -.0035 .0143
age in years -.042 .3393 .2973
age squared .0408 -.1735 -.1327
n. of children under 18 .0004 .0047 .0051
n. of children under 7 .0004 .0013 .0017
work experience .0021 .0061 .0082
Sum .0649 .0892 .1498
st.dev .0025 .0026 ass=0
The results of tables (5) through (9) can be summarised as follows. The gross wage dif-
ferential is lowest among manufacturing workers and local government workers (just under 20
per cent and just over 20 per cent, respectively). It is highest for the salaried manufacturing
employees (over 30 per cent). The central government personnel and the employees of private
service sector firms occupy the middle ground, with a differential around 25 per cent.
13
15. In these sector-specific computations, we have had to discard some observations that be-
long to the smallest and most segregated occupational categories, since no reliable statistical
inference is possible if a cell contains only a couple of female or a couple of male obser-
vations5
. This truncation of the data has a different effect in different sectors. Deleting the
smallest and most segregated occupational categories leads to a large drop in the gender differ-
ential of manufacturing wage-earners; as is apparent from table 7, the gross wage differential is
as low as 15 per cent. Thus, the most segregated occupational categories tend to be populated
by high-earning males and low-earning females. Among the local government workers, this
truncation has the opposite effect of increasing the gross wage differential. Small and segre-
gated occupational categories tend there to include female with high earnings and males with
low earnings.
The tables indicate that segregated occupational categorisation explains away most of the
wage differential in the case of local and central government employees. In both cases, 80 to
90 per cent of the gross differential is explained by differences in the means of the regressors,
and segregation into different occupations is in turn responsible for about 4/5 of that effect
(see the entry at the intersection of row “occupational category” and column “Difference in
characteristics” in tables 8 and 9: it is of the order of 15 percentage points in both sectors).
The effect of differential treatment of age is quite limited.
The picture is somewhat different amongst the manufacturing industries employees and
workers. There, the share of the gross wage differential that can be explained away by differ-
ent characteristics is in general lower, about half of the gross differential for salaried employees
and about a third of the gross differential for workers. A closer look at tables 6 and 7 reveals
that the effect of differential selection into occupational categories is much lower in manufac-
turing than in the public sector ; it only contributes a couple of percentage points among wage
earners and about 10 percentage points among salaried employees. The effect of differential
treatment of age, by contrast, is an important factor: by itself, it creates an unexplained wage
differential of about 16 percentage points in both subsets of manufacturing personnel. Note
also that the sum of unexplained mean gaps (see the entry at the intersection of row “constant
plus selection” and column “Differential pricing” in tables 6 and 7) is negative. Thus, within
occupational categories, manufacturing firms tend to pay more or less the same to young peo-
ple, but the accruing of age leads to a widening gap between senior males and senior females.
Finally, for the employees of private service sector firms (see table 5) , the occupational
variable is also quite important: segregated selection into occupations generates a wage differ-
ential of almost 15 percentage points. Since differential age treatment plays an important role
as well, the computation ends up with a substantial gross differential of 27 percentage points,
of which roughly 16 percentage points are explained by the regressors, mostly occupational
selection.
To sum up, the public sector seems prima facie to exemplify the principle of “similar pay
for similar work”, since the remaining unexplained differential is quite low. Or, to put it in
another way, aspirations towards a lower gross differential should focus on the adequacy and
5
We have required that an occupational category cell have at least 5 observations.
14
16. Table 8: Decomposition for 1998, local government.
Variable Difference in characteristics Differential pricing Sum
constant n.u n.u
temporary -.0015 n.u n.u
occupation (detailed) .1414 n.u n.u
industry .0123 n.u n.u
education .0482 n.u n.u
employer size -.0022 n.u n.u
constant plus selection .1982 .0018 .2
age in years -.002 -.0287 -.0307
age squared .0012 .0483 .0495
n. of children under 18 .0007 .0074 .0081
n. of children under 7 -.0007 .0012 .0005
work experience -.0017 .0069 .0052
Sum .1956 .037 .2319
st.dev .0072 .007 ass=0
objectivity of the occupational job classification and women’s opportunities to move upward
on the job ladder. In manufacturing, by contrast, occupational selection is not such an engine
of wage differentiation, but there seems to be an important age effect: manufacturing is a much
less attractive employer to senior women than to senior men.
15
17. Table 9: Decomposition for 1998, central government.
Variable Difference in characteristics Differential pricing Sum
constant n.u n.u
temporary -.0006 n.u n.u
occupation (detailed) .1665 n.u n.u
industry -.0009 n.u n.u
education .0307 n.u n.u
employer size .0018 n.u n.u
constant plus selection .1976 -.0457 .1519
age in years -.0333 .0992 .0659
age squared .0274 -.0531 -.0257
n. of children under 18 .0006 .0037 .0043
n. of children under 7 .0011 .0029 .004
work experience .0007 .0132 .0139
Sum .194 .0202 .2136
st.dev .0059 .0058 ass=0
4 The distribution of the unexplained gap
The Oaxaca decompositions were complemented by an analysis of the distribution of the gap
according to a woman’s predicted wage. Oaxaca decompositions tell the mean of the unex-
plained gap, but contain no information on the distribution of this component. Yet, from the
point of view of society’s preferences and the political assessment of eventual discrimination,
it is probably not at all immaterial whether this unexplained component is evenly distributed
or is concentrated into some specific sections of the variable space. For example, if women’s
earnings, on average, amount to 90 per cent of the earnings of men endowed with similar char-
acteristics (age, education, occupation, etc.), there might one group of women who earns as
much as similar men do and another which earns 20 per cent less as similar men.
In the absence of obvious examples to copy, we adopted the following approach. We first
estimated a conventional log-wage regression for male observations. Then, for each female
observation, we computed the prediction of the wage using the estimated parameters of the
male wage equation. This variable, nicknamed a woman’s “male-wage”, tells how much the
woman in question would earn if she were lucky enough to be a man with precisely similar
characteristics.
We then sorted (ordered) the sample of women according to their “male-wage” and split
the sample into 20 groups of equal size (“vigintiles”). Thus, in the first group, there are those
women whose predicted male-wage is the lowest, and in the last group there are those women
whose predicted male-wage is the highest. We then computed the average unexplained wage
gap within each group; thus, the resulting statistic tells for each group the average distance to
males with similar characteristics.
16
18. The results of these computations are presented in Figures 1 through 6. Figure 1 shows the
average gaps by vigintile in the entire sample; it is based on the male wage regression which
generated tables (3) and (4). Figures 2 through 6 display the same information for the sector
subsets of the sample (cf. section 3.3).
These computations are based on the widest set of regressors, including occupational cat-
egories. On top of each bar, we indicate a 2-digit number; it is the share of women in the
wage bracket implied by the vigintile. Thus, in general, the share of women is quite high in
the lowest 5-percent groups and it declines as the male-wage predictor grows.
The interesting finding is that the unexplained gap is in general quite low for those women
whose qualifications would generate a low wage prediction by male coefficients. Since these
are in general women with low earnings, we can conclude that the gap is lowest among low
wage earners. The gap then increases steadily as we move to higher income groups, and it
is highest either at the very end of the group scale or a little below. Thus, our preliminary
conclusion is that it is women with good educational qualifications working in high-wage
occupations who drag the most behind their male colleagues.
"Figure 1: all wage earners"
5 percent group
averageunexplainedgap
−0.050.000.050.100.150.200.25
82
75
72
70
68
64
62
57
55
51
47
47
46
44 48
48 44
39
35
31
17
21. Table 10: Gross differential and explained part in three educational groups, 1998
Low education Medium education High education
Gross differential 19.8 17.9 28.0
Explained contribution 9.8 10.4 20.6
Unexplained gap 10.0 7.5 7.4
"Figure 6: central government"
5 percent group
averageunexplainedgap
−0.050.000.050.100.150.200.25
77
77
80
72 79
80
78
76
68
64
57
51 48 44
38
33
32
39
26
5 Educational groups
Without reporting the full decomposition tables, we note the result that the gross wage gap
was highest among employees with the highest educational qualifications. If we partition the
sample into three educational groups (“low”, “middle”, “high”) and run the decomposition for
each group separately, the results depicted in table 10 emerge. The gross differential is far
higher among the well-educated, but the unexplained gap is more or less the same.
20
22. 6 A note on segregation
The above results suggest that differentiated assignment into occupations and industries is the
most important single factor that sustains the gross gender wage differential. As a part of
the project, we have also computed a number of dissimilarity indices that capture this phe-
nomenon. We use the conventional Duncan dissimilarity index that is defined as follows. Sup-
pose that the individuals of the sample are partitioned into I categories indexed by i = 1, ..., I.
Denote by mi the share of category i:s men out of all men; and by fi the share of women of
category i out of all women in the sample. The dissimilarity index D is defined
D = (1/2)
I
i=1
|mi − ni|. (8)
Intuitively, the index tells the share of either sex that would have to change category if
we wanted to generate a completely symmetric assigment of women and men into categories.
By exploiting another data set, the Household Income Distribution Survey, we computed the
Duncan index over a coarse occupational categorisation6
. The results are reported in table 11
and they reveal, if anything, a slow decline in segregation. As to our main sample, we had at
our disposal only the three years 1996, 1997 and 1998, so that no sharp conclusions on trends
can be made. However, as the following table 12 shows, the segregation indices for these years
are in decline as well, both what regards occupational as well as industrial assignment.
6
“Pääammatti” in Finnish. Asymmetrical distribution over that categorisation also explains about half of the
gender wage differential in that data set, but these computations are not reported, since they are based on a less
representative sample
21
23. Table 11: Dissimilarity index over occupations, 1989-1998
year D
89 .63
90 .62
91 .60
92 .60
93 .60
94 .61
95 .62
96 .59
97 .58
98 .59
Table 12: Dissimilarity index over occupations and industries, 1996-1998
year D over occupations D over industries
96 .650 .427
97 .646 .425
98 .636 .412
Finally, we might mention that a similar picture of a weakening segregation emerges if one
carries out a similar computation for the five subsections of the sample; in that case the sector-
specific fine occupational categorisation is substituted to the economywide categorisation used
in table 12. A decline in the segregation measure emerges for all of our five subsectors.
7 Concluding remarks
We have shown that very little of the gender differential can be explained by using individual
characteristics alone. Occupational categories are a far more important factor. In the public
sector in particular, the commonplace assumption of age careers being disadvantageous to
women turns out to be insufficient. The pure age factor is more important in manufacturing
industries. As to the distribution of the unexplained gap, we found a concave relationship
between the wage level and the gap; the gap is low at low wage levels and increases as expected
income grows.
In addition to the analyses reported above, some other results were generated. By exploit-
ing another data set (the Household Income Distribution Survey), we investigated whether the
wage differential had changed over time during years 1989-1998. This was not the case, and
these analyses are not reported. We also used both of our data sets to decompose the yearly
changes in the gender wage differentials according to the theoretical decomposition exposed
by Altonji and Blank (see Altonji and Blank (1999) and Juhn et al. (1991)). The year-to-year
changes of the differential were very low, however, and so a decomposition of these changes
turned out to be, unsurprisingly, a splitting of a small component into even tinier components.
These methods are probably better suited to monitoring the wage differential over longer time
spans like decades.
22
24. However, one positive development could be reported on the evolution of dissimilarity
indices over time. Using both of our data sets, we computed the Duncan dissimilarity index
over occupational classification and industrial classification. In all of these indicators, a slow
but statistically significant trend towards less segeration emerges.
Hopefully, the methods and results of the project reported here can contribute to a more
regular and systematic monitoring of the gender wage differential in future. Similar methods
can also serve the purpose of comparative work and adoption of best practices within the
European Union7
.
7
Indeed, the Belgian presidency’s proposition on Indicators in Gender Pay Equality follows a rather similar
line of thought.
23
25. References
Altonji, J. G. and Blank, R. M. (1999). Race and gender in the labor market. In Ashenfelter,
O. and Card, D., editors, Handbook of Labor Economics. Elsevier Science.
Jenkins, S. (1994). Earnings discrimination measurement: a distributional approach. Journal
of Econometrics, 61(1):81–102.
Juhn, C., Murphy, K., and Pierce, B. (1991). Accounting for the slowdown in black-white
wage convergence. In Kosters, M., editor, Workers and their wages. AEI Press, Washington
DC, Washington DC.
Oaxaca, R. (1973). Male-female wage differentials in urban labor markets. International
Economic Review, 14(3):693–709.
Oaxaca, R. and Ransom, M. (1994). On discrimination and the decomposition of wage differ-
entials. Journal of Econometrics, 61:5–21.
Oaxaca, R. and Ransom, M. (1999). Identification in detailed wage decompositions. Review
of Economics and Statistics, 81(1):154–157.
Vartiainen, J. (2001). Sukupuolten palkkaeron tilastointi ja analyysi. Number 2001:17 in
Tasa-arvojulkaisuja. Sosiaali- ja terveysministeriö.
24