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SM ISO690:2012 POPESCU, Madalina Ecaterina, MILITARU, Eva. Education and Wage Inequalities under a Counterfactual Scenario of Minimum Wage. In: 4th Central and Eastern European LUMEN International Scientific Conference on Education, Sport and Health, 29-30 septembrie 2017, Iași. Iași, România: LUMEN Conference Center, 2017, pp. 192-195. |
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4th Central and Eastern European LUMEN International Scientific Conference on Education, Sport and Health 2017 | |||||
Conferința "4th Central and Eastern European LUMEN International Scientific Conference on Education, Sport and Health" Iași, Romania, 29-30 septembrie 2017 | |||||
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Pag. 192-195 | |||||
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The main purpose of this paper consists in quantifying the impact of a minimum wage adjustment upon wage inequality in Romania. In general, rigorous minimum wage impact assessment upon wage distribution is quite difficult to be conducted mainly because of data access limitations to longitudinal information available at individuals‟ level. In this paper an innovative approach is proposed for building a counterfactual scenario through the use of quarterly survey micro-data provided by the National Institute of Statistics. The period analysed in this paper regards the timeinterval Q2 2014-Q3 2014. There are several reasons for this choice. First, there were data availability restrictions and second, it was necessary to identify two consecutive periods corresponding to a window-frame right before a minimum wage adjustment and immediately after it took place. In order to check the impact on gender wage inequalities in a more robust manner, a 1:1 matching procedure was applied in order to build two distinct gender groups of individuals that are similar in observable characteristics. Both socio-demographic and economic factors are considered. When comparing the changes registered right after the minimum wage adjustment, we noticed a reduction in gender wage inequalities, as males‟ chances to earn more and move forward to a higher wage decile of the distribution than females drop with almost 47 percentage points. Our findings also suggest that the level of education plays an important role in someone‟s chances of getting higher wages, especially for the case of females. Several limitations of the study are also discussed. |
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Cuvinte-cheie wage inequalities, minimum wage, counterfactual scenario, wage distribution, education |
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