Analysing determinants of wages and wages discrimination

This paper aims to define whether, and/or how fast, the determinants of certain earnings levels increases the differences in wages. The paper analyses how much main and additional jobs are paid and who the individuals are who choose the to do additional jobs and whether the difference in earnings between males and females becomes deeper during the transition period to market economy.

This analysis starts from an assumption that there are no significant differences regarding the determinants of wages, which stands as a decisive factor in deciding whether to undertake additional activity. According to the authors, the Central and Eastern European (CEE) countries experienced the lowest differences at the beginning of transition process, but gradually deepened with the introduction of labour-market institutions and the transition of the labour force from the state to the private sector. Personal consumption absorbs a significant portion of total income in Serbia, which is common in poor societies. As higher levels of poverty prompt social stratification, the search for alternative forms of employment increases. The phenomenon of multiple job holding is typical for poor countries -- especially for those that are in the process of transition to a market economy.

The paper finds that:

• education level affects significantly wage premium for both men and women, though it is more significant for the determination of wages for women
• In 2002 they find an increased significance in Belgrade in the determination of wages of employed men, while the premiums of women are lower in comparison
• female wages depend more on the choice of residence than male wages
• both men and women earn more when they work in their own company or shop than workers in the socially-owned sector
• while in 2001 women employed in the private sector had significantly higher premiums than women employed in socially-owned enterprises, in 2002 the impact of private sector in the determination of male wages became more significant

The paper concludes that:

• decisions to take on an additional job do not depend only on the need for additional income in poor households, but is also motivated by a desire to change a primary job
• those who are younger, more mobile and better educated are more likely to move from one job to another
• years of working experience are not a significant factor in male or female earnings determination in case of primary or additional employment.