88th International Atlantic Economic Conference
October 17 - 20, 2019 | Miami, USA

What influences monthly wages? Evidence from selected European Union member states

Saturday, 19 October 2019: 10:00 AM
Aleksandra Matuszewska-Janica, Ph.D. , Dept. of Econometrics & Statistics, Warsaw University of Life Sciences, Warszawa, Poland
Dorota Witkowska, Ph.D. , Finance and Strategic Management, University of Lodz, Lodz, Poland
Remuneration is one of the most important elements of the labor market which helps regulate relationships among labor market participants. The level of remuneration is determined by many factors that can be divided into three categories concerning:

(1) business environment (economic situation in the region/country, legal solutions regulating labor market relations, solutions for external care of children and the elderly, structure of the labor market, etc.);

(2) characteristics of the employer (the industry in which the company operates, size of the enterprise, public / non-public sector, etc.);

(3) characteristics of the employee (occupation, professional experience, level and type of education, age, form of employment, working time, etc.).

An important issue in the economic debate is research related to the analysis of wage differences in various groups of employees, especially men and women. Women and men are groups of employees often characterized by separate attributes, i.e. we expect that various factors have different impacts on the level of remuneration in these two groups. In addition, our analyses and numerous literature sources provide a clear indication that the impact is highly geographically diverse. The aim of the presented analysis is to assess the impact of selected factors on the level of men's and women's remuneration in the selected EU countries and to compare them. This report uses individual data from the Eurostat Labor Force Survey databases (LFS). The analysis is a supplement and extension to research so far conducted using data from the EU Structures of Earnings Survey. As a research tool, ordered logit models were applied, mainly due to the nature of the explanatory variable, which is the level of remuneration defined as the decile of remuneration (variable measured on an ordinal scale).