Heterogeneous wage structure effects: a partial European East-West comparison

Olga Takács () and János Vincze ()
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Olga Takács: Corvinus University of Budapest
János Vincze: Corvinus University of Budapest and Centre for Economic and Regional Studies

No 2305, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: We estimate heterogeneous wage structure effects for country-pairs within the EU by the Causal Forest algorithm, then identify groups of workers with the highest and lowest discrepancies in terms of wage differentials. We find that, in the East-West comparison, age is the most consistently differentiating factor. People over 40 are most adversely treated in the East relative to the West, and especially those who have no tertiary education and work in small or medium-sized enterprises.

Keywords: Wage structure effects; Generalized Random Forest Regression; Conditional average treatment effects; Wage convergence in the EU (search for similar items in EconPapers)
JEL-codes: C14 F66 J31 (search for similar items in EconPapers)
Date: 2023-03
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