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Theoretical and Applied Economics
No. 2 / 2017 (611), Summer

Wage inequalities in Romania under successive adjustments in minimum wage levels

Mădălina Ecaterina POPESCU
National Scientific Research Institute for Labour and Social Protection, Romania
The Bucharest University of Economic Studies, Romania
Eva MILITARU
National Scientific Research Institute for Labour and Social Protection, Romania

Abstract. In this paper we aim to identify some of the most relevant wage determinants observable at micro level and try to explain wage inequalities through the use of Mincer equations. The case of Romania is discussed for the year 2014. Because of data availability issues, the methodological framework relied on ordered logit models. Moreover, because of the two successive increases in the minimum wage levels, the paper analyses the changes occurring quarterly during Q1 2014 – Q4 2014 upon the individuals odds of moving forward to a higher decile of the wage distribution. Both social-demographic and economic characteristics are investigated.

Keywords: wage inequalities, ordered logit model, micro-datasets, socio-demographic factors, economic factors.

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