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The Part-Time/Full-Time Wage Gap in Central and Eastern Europe: the Case of Estonia

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  • Kerly Krillo

    (University of Tartu)

  • Jaan Masso

    (University of Tartu)

Abstract

Unlike Western countries, there are no studies focusing on the full-time/part-time wage gap in Central and Eastern Europe countries. The focus of this paper is the incidence and reasons for the part-time wage gap in Estonia, a small Eastern European catch up economy. We use Estonian Labour Force Survey data for 1997-2007, and the part time wage gap is decomposed using the Heckman selection model and Oaxaca-Blinder wage decompositions. The results indicate that for females the observable part-time wage premium is unexplained with the controls used in the analysis. For males, the full-time raw premium exists, but it is to a large extent captured by explanatory variables. For both genders, the labour market situation is remarkably better for voluntary part-timers. The probable explanations for this are the generally low wage levels, the cyclical behaviour of wage gaps, undeclared income and unobserved heterogeneity of employees and firms.

Suggested Citation

  • Kerly Krillo & Jaan Masso, 2010. "The Part-Time/Full-Time Wage Gap in Central and Eastern Europe: the Case of Estonia," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 2(1).
    • Handle: RePEc:ttu:rebcee:24
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    Cited by:

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    2. Ilona Pavlenkova & Luca Alfieri & Jaan Masso, 2024. "Effects of automation on the gender pay gap: the case of Estonia," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 33(3), pages 584-608.
    3. International Labour Organization., 2015. "Global employment trends for youth 2015 : scaling up investments in decent jobs for youth," Global Employment Trends Reports 994891803402676, International Labour Office, Economic and Labour Market Analysis Department.
    4. Priit Vahter & Jaan Masso, 2019. "The contribution of multinationals to wage inequality: foreign ownership and the gender pay gap," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 155(1), pages 105-148, February.
    5. Kerly Krillo & Jaan Masso, 2010. "The Part-Time/Full-Time Wage Gap in Central and Eastern Europe: the Case of Estonia," Research in Economics and Business: Central and Eastern Europe, Tallinn School of Economics and Business Administration, Tallinn University of Technology, vol. 2(1).
    6. Colella, Fabrizio, 2014. "Women's Part-Time - Full-Time Wage Differentials in Europe: an Endogenous Switching Model," MPRA Paper 55287, University Library of Munich, Germany.
    7. Jaan Masso & Kerly Krillo, 2011. "Mixed Adjustment Forms and Inequality Effects in Estonia, Latvia and Lithuania," Chapters, in: Daniel Vaughan-Whitehead (ed.), Work Inequalities in the Crisis, chapter 2, Edward Elgar Publishing.
    8. Jaan Masso & Kerly Krillo, 2011. "Labour Markets In The Baltic States During The Crisis 2008-2009: The Effect On Different Labour Market Groups," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 79, Faculty of Economics and Business Administration, University of Tartu (Estonia).

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    More about this item

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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