Can the Introduction of a Minimum Wage in FYR Macedonia Decrease the Gender Wage Gap?

This paper relies on a simple framework to understand the gender wage gap in Macedonia, and simulates how the gender wage gap would behave after the introduction of a minimum wage. First, it presents a new - albeit simple - decomposition of the wage gap into three factors: (i) a wage level factor, which measures the extent to which the gender gap is driven by differences in wage levels among low-skilled workers of opposite sex; (ii) a skills endowment factor, which quantifies the extent to which the gender wage gap is driven by the difference in the share of high-skilled workers by gender; and (iii) returns to education, which measures the extent to which the gender gap is driven by differences by gender in returns to education. Second, the paper presents simple set of simulations that indicate that the introduction of a minimum wage in Macedonia could contribute to decrease the gender wage gap by up to 23 percent. Nevertheless, in order to significantly improve the wage gap, a rather high minimum wage may be required, which may contribute to reductions in employment.

Bibliographic Details

Main Author:	Angel-Urdinola, Diego F.
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	2008-12
Subjects:	AGE GROUP, ALTERNATIVE EMPLOYMENT, AVERAGE WAGE, COLLECTIVE AGREEMENT, COMPETITIVE MARKET, CONTRIBUTIONS, DISCRIMINATION, DRIVERS, EARNING, EARNINGS, ECONOMIC THEORY, EDUCATED WOMEN, EMPLOYEE, EMPLOYERS, EMPLOYMENT, EMPLOYMENT EFFECTS, EMPLOYMENT GROWTH, EMPLOYMENT OPPORTUNITIES, EMPLOYMENT OUTCOMES, EMPLOYMENT RATES, ENDOWMENTS, EXCLUSION, FEMALE EMPLOYEES, FEMALE LABOR, FEMALE LABOR FORCE, FEMALE LABOR FORCE PARTICIPATION, FEMALE WORKERS, GENDER, GENDER ACTION, GENDER GAP, GENDER INEQUALITY, GENDER SEGREGATION, GENDER WAGE GAPS, HIGH UNEMPLOYMENT, HIGH UNEMPLOYMENT ­ RATES, HOUSEHOLDS, HUMAN CAPITAL, HUMAN RESOURCES, INCOME, INEQUALITY, INTERNATIONAL BANK, JOB OPPORTUNITIES, JOBS, LABOR COSTS, LABOR ECONOMICS, LABOR FORCE PARTICIPATION, LABOR FORCE SURVEY, LABOR MARKET, LABOR MARKET ASSESSMENT, LABOR MARKET OUTCOMES, LABOR MARKET POLICY, LABOR MARKET SEGMENTATION, LABOR MARKETS, LABOR MOBILITY, LABOR RELATIONS, LABOR SUPPLY, LABOUR, LABOUR MARKETS, LEVEL OF EDUCATION, LOW EMPLOYMENT, MARKET WAGE, MARKET WAGES, MINIMUM WAGE, MINIMUM WAGES, MONOPSONY, MONOPSONY POWER, PRIVATE COMPANIES, PRIVATE SECTOR, PRIVATE SECTORS, PROBABILITY, RESPONSIBILITIES, SAFETY, SALARY, SERVANTS, SKILLED EMPLOYEES, SKILLED LABOR, SKILLED WOMEN, SKILLED WORKERS, SOCIAL PROTECTION, SOCIAL SERVICES, UNEMPLOYMENT, WAGE COUNCILS, WAGE DIFFERENTIALS, WAGE DISPERSION, WAGE DISTRIBUTION, WAGE GAP, WAGE GAPS, WAGE INCREASE, WAGE LEVEL, WAGE LEVELS, WAGE POLICY, WAGE RATE, WAGE RATES, WAGE SET, WOMEN WORKERS, WORKER, WORKING AGE, WORKING AGE POPULATION, WORKING HOURS, WORKING WOMEN,
Online Access:	http://documents.worldbank.org/curated/en/2008/12/10108928/can-introduction-minimum-wage-fyr-macedonia-decrease-gender-wage-gap-can-introduction-minimum-wage-fyr-macedonia-decrease-gender-wage-gap http://hdl.handle.net/10986/6344
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