Analysing Determinants of Wages and Measuring Wage Discrimination Based on Gender in the Hungarian Labour Market
Analysing Determinants of Wages and Measuring Wage Discrimination Based on Gender in the Hungarian Labour Market

Summary/Abstract: Differences in earnings among working people have long represented the focus of economic theory and applied research. Many authors accounted for substantial differences in earnings, induced by various levels of education, experience, as well as by other factors, such as gender, race, occupation, geographic region. This paper aims to provide an analysis of this kind, pertaining to the transitional Hungarian labour market. In the first stage, using the available data and following the line of reasoning introduced by the Human Capital theorists, we assess which are the main determinants of wages. Secondly, using the traditional Oaxaca-Blinder decomposition, we measure the level of wage discrimination based on gender, since gender has been traditionally considered as a source of chronic wage gap between working individuals.

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