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

Kerly Krillo and Jaan Masso ()
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Kerly Krillo: University of Tartu

Research in Economics and Business: Central and Eastern Europe, 2010, vol. 2, issue 1

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.

Date: 2010
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Citations: View citations in EconPapers (6)

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Related works:
Working Paper: THE PART-TIME/FULL-TIME WAGE GAP IN CENTRAL AND EASTERN EUROPE: THE CASE OF ESTONIA (2010)
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