Inter-industry Wage Differentials in the Czech Republic
| Název práce v češtině: | Meziodvětvové mzdové rozdíly v České republice |
|---|---|
| Název v anglickém jazyce: | Inter-industry Wage Differentials in the Czech Republic |
| Klíčová slova: | Meziodvětvové mzdové rozdíly, Nepozorované schopnosti, Sdílení renty, Průřezová data, Kvantilové regrese |
| Klíčová slova anglicky: | Industry wage differentials, Unobserved ability, Rent-sharing, Cross-sectional data, Quantile regressions |
| Akademický rok vypsání: | 2011/2012 |
| Typ práce: | diplomová práce |
| Jazyk práce: | angličtina |
| Ústav: | Institut ekonomických studií (23-IES) |
| Vedoucí / školitel: | doc. Ing. Vladislav Flek, CSc. |
| Řešitel: | skrytý - zadáno vedoucím/školitelem |
| Datum přihlášení: | 26.06.2012 |
| Datum zadání: | 26.06.2012 |
| Datum a čas obhajoby: | 26.06.2013 00:00 |
| Místo konání obhajoby: | IES |
| Datum odevzdání elektronické podoby: | 14.05.2013 |
| Datum proběhlé obhajoby: | 26.06.2013 |
| Oponenti: | PhDr. Jiří Kameníček, CSc. |
| Předběžná náplň práce v anglickém jazyce |
| In a fully competitive economy, the market forces should ensure that workers with the same abilities earn identical wages. However since the publication of the seminal article by Krueger and Summers in 1988, the theory of competitive wage has been challenged by many studies for different countries. Supporters of the non-competitive wage theory explain these differentials as a result of rent sharing – a positive relationship between industry profits and industry wage premia. On the other hand some authors claim that the observed wage differentials are a consequence of omitting unobserved workers’ attributes in estimates of wage functions.
Previous studies aimed at wage differentials in the Czech Republic usually examined only part of the problematic. Basu et al. (2004) focused on industry wage differentials and rent-sharing, but without taking workers individual characteristics into account. In Magda et al. (2009) we can find estimates of inter-industry wage differentials for the Czech Republic, but without further analysis of theirs sources (rent-sharing, unobserved abilities). Therefore the primary aim of this master thesis will be to analyse inter-industry wage differentials in the Czech Republic in a complex manner and identify their sources and relative importance based on competitive and non-competitive wage theories. Addition to that, the thesis will also engage in wage differentials depending on various individual characteristics (education, age, gender or nationality), firm or industry characteristics (plant-size, union coverage, level of competition) and other potentially relevant variables. In comparison with previous studies, Czech inter-industry wage differentials will be analysed using more recent data. Hypotheses: 1. Are inter-industry wage differentials present in the Czech Republic? If yes, to what extent? 2. Do they result from industry differences in ability to pay or unobserved workers quality? 3. Can industry profit-per-worker help to explain the inter-industry wage differentials? Methodology: In methodological terms, the thesis will in general borrow mainly from Plasman et al. (2006). The analysis will be based on the cross-sectional EU-SILC database containing information on individual earnings and individual workers characteristics and some employers characteristics (plant location, industry affiliation). In addition, the data provided by the firm Trexima and Czech Statistical Office will also be used to include additional information, particularly on union coverage and industry profits. These data will be applied in linear regression models, of which standard errors will be used to identify wage differentials based on the methodology of Zanchi (1998). The essence of her approach is to use the normalised variance-covariance matrix. She argued that for testing the significance of normalized industry parameters it is more straightforward and accurate than the variance-covariance matrix obtained from the model with industry dummy variables. The methodology of Martins (2004) will be employed to test the hypothesis of contribution of unobserved workers’ abilities to the industry wage differentials. Its core is to apply quantile regressions and compare the wage differentials and premia across sectors. Finally the contribution of rent-sharing to the inter-industry wage differentials will be assessed by including industry profit-per-worker variable in the model, as Plasman et al.(2006) did. Outline: 1.Introduction 2.Theory and Empirical Evidence 3.Data 4.Inter-Industry Wage Differentials a)Methodology b)Results 5.Inter-Industry Wage Differentials and Unobserved Abilities a)Methodology b)Results 6.Inter-Industry Wage Differentials and Rent-Sharing a)Methodology b)Results 7.Conclusion |