EdPlaCo-MK: A tool for greater gender wage equality in Macedonia

EdPlaCo-MKA tool for greater gender wage equality in Macedonia- With reference to workers’characteristics and selectivity bias into

employment -

Dr. Marjan Petreski

TeamDr. Nikica Mojsoska Blazevski

Ms. Blagica Petreski

University American College SkopjeAssociation for economic research "Finance Think" Skopje

Manila, 19-21 June 2013

M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 1 / 21

One minute question...

Who works in a company/institution that:

... pays equal wage for men and women?

... pays appropriate wage to your education, skills and experience?

... improves job satisfaction in an equal-pay environment?

... offers options for job sharing, flexible and part-time arrangements?

Objective of the research

To develop a web-based developmental tool to reduce gender wageinequality in Macedonia


Motivation“Balkan phenomenon”

In 2011, the gender wage gap in Macedonia was 12%

When adjusted to the observable characteristics of working labor, thegap jumps to 17% - “Balkan phenomenon”

Education, experience, age and other observables cannot explain thegap


Motivation

Disaggregated according to the skills level

the gap is very wide for low-skilled workers

Unadjusted wage gapLow skills 30%Medium skills 19%High skills 5%TOTAL 12%

Source: SILC, 2011


MotivationLabor market characteristics of a transition economy

Low employment rate of 44%

Low participation rate of 64%

Large gender gaps in employment (16 p.p.) and activity (26 p.p)

traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)rural women - unpaid family workerthe large emigration and remmitances






traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)

rural women - unpaid family workerthe large emigration and remmitances






traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)rural women - unpaid family worker

the large emigration and remmitances






traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)rural women - unpaid family workerthe large emigration and remmitances


Motivation

Gender employment and participation gaps may shed some light ongender wage gap?

Large portion of working-age women remain outside of the labormarket/jobs


Motivation

Non-random selection into employment, especially among thelower-skilled women

low-wage female workers do not feature in the observed wagedistribution

If correct, then the “Balkan phenomenon”might lead to inflated,rather than to "unexplained" gender wage gap

If employed women in Macedonia tend to have relatively low-wagecharacteristics (compared to inactive and unemployed women), lowfemale employment rates become consistent with high gender wagegaps


Literature

Substantial literature both on gender wage gap and employment gap

Some of the available literature includes: Gronau (1974); Beblo et al.(2003); Albrecht et al. (2004); Azmat et al. (2004); Fotin (2005);Petrongolo and Olivetti (2006) and others

No studies simultaneously examining the two

No study so far for Macedonia or other country from the WesternBalkan


Policy innovationSolution for development

Establishing a web-supported developmental tool as a way of helpingprivate companies and public institutions to develop organizationalsolution for fair compensation of employees

Solution“Equal Pay in Companies —Macedonia”—EdPlaCo-MK


Policy innovationSolution for development

Awarding a logo as a label of fair payer


Methodology

The empirical approach will recuperate the counterfactual wagedistribution that would prevail if the selection into work is fullyrandom

alternative imputation techniques based on median regressions

do not require assumptions on the actual level of missing wages(matching approach)nor they require arbitrary exclusion restrictions and lack of robustness(Manski, 1989) (Heckman models)


Methodology



do not require assumptions on the actual level of missing wages(matching approach)

nor they require arbitrary exclusion restrictions and lack of robustness(Manski, 1989) (Heckman models)


Methodology



do not require assumptions on the actual level of missing wages(matching approach)nor they require arbitrary exclusion restrictions and lack of robustness(Manski, 1989) (Heckman models)


Methodology

Repeated imputation considers the uncertainty about the reason formissing information (Rubin, 1987)

It is based on a probabilistic model, i.e. on repeated random drawsunder our chosen model for non-employmentHence, it considers the additional variability underlying the presence ofmissing values.


Methodology


It is based on a probabilistic model, i.e. on repeated random drawsunder our chosen model for non-employment

Hence, it considers the additional variability underlying the presence ofmissing values.


Methodology


It is based on a probabilistic model, i.e. on repeated random drawsunder our chosen model for non-employmentHence, it considers the additional variability underlying the presence ofmissing values.


Methodology

Innovativeness

alternative imputation techniques which proved stronger in making thedistributional assumptionsreflecting on the uncertainty related to the reason for missing wage.


Methodology

Innovativeness

alternative imputation techniques which proved stronger in making thedistributional assumptions

reflecting on the uncertainty related to the reason for missing wage.


Methodology

Innovativeness

alternative imputation techniques which proved stronger in making thedistributional assumptionsreflecting on the uncertainty related to the reason for missing wage.


Data

Survey of income and living conditions (SILC)

First collected in Macedonia in 2011

Advantages

First use of this datasetRich and large dataset


Data



Advantages

First use of this dataset

Rich and large dataset


Data



Advantages

First use of this datasetRich and large dataset


Current policy environment

Parliamentary Commission on Gender Equality

No evidence-based measuresNo focus on gender wage equality

Equal Opportunities Committees (EOCs) working at the local level

Macedonia endorsed the ILO Convention for equal wage for work ofequal value

Though, incorrectly implemented

However, results are largely absent




No evidence-based measures

No focus on gender wage equality








No evidence-based measuresNo focus on gender wage equality






Policy impact

At the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and define operational solutions for fairpayment to men and women

Attract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversity


Policy impact


Attract the best workers

Prepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversity


Policy impact


Attract the best workersPrepare best practices related to remuneration

Improve the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversity


Policy impact


Attract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimage

Reduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversity


Policy impact


Attract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining process

Increase the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversity


Policy impact


Attract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institution

Improve overall corporate governanceAchieve competitive advantage by promoting gender diversity


Policy impact


Attract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governance

Achieve competitive advantage by promoting gender diversity


Policy impact


Attract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversity


Policy impact

At the employee’level, EdPlaCo-MK will

Provide employees with a yardstick against which will estimate theirfair wageSteer motivation on the workplace and potentially raise productivityImprove employees’bargaining powerProvide incentives for greater labor supply


Policy impact


Provide employees with a yardstick against which will estimate theirfair wage

Steer motivation on the workplace and potentially raise productivityImprove employees’bargaining powerProvide incentives for greater labor supply


Policy impact


Provide employees with a yardstick against which will estimate theirfair wageSteer motivation on the workplace and potentially raise productivity

Improve employees’bargaining powerProvide incentives for greater labor supply


Policy impact


Provide employees with a yardstick against which will estimate theirfair wageSteer motivation on the workplace and potentially raise productivityImprove employees’bargaining power

Provide incentives for greater labor supply


Policy impact


Provide employees with a yardstick against which will estimate theirfair wageSteer motivation on the workplace and potentially raise productivityImprove employees’bargaining powerProvide incentives for greater labor supply


Policy impact

At the government level, the project will

Provide evidence for better design of policies related to gender equalitySpur the debate about the gender wage inequality and advocate forinclusion of wage equality policies in the Action plan for gender equality


Policy impact


Provide evidence for better design of policies related to gender equality

Spur the debate about the gender wage inequality and advocate forinclusion of wage equality policies in the Action plan for gender equality


Policy impact


Provide evidence for better design of policies related to gender equalitySpur the debate about the gender wage inequality and advocate forinclusion of wage equality policies in the Action plan for gender equality


Therefore...

Those of you who did not raise hands at the beginning

Are much welcome to work in an environment featuring gender equalityin Macedonia after the implementation of this project


Thank you very much for your attention!

[email protected]


EdPlaCo-MK: A tool for greater gender wage equality in Macedonia

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