Anita Staneva

Is There an Informal Employment Wage Premium? Evidence from Tajikistan

AbstractThis paper defines informal sector employment and decomposes the difference in earnings between formal and informal sector employees in Tajikistan for 2007. Using quantile regression decomposition technique proposed by JAE, 20:445-465, 2005and considering self-selection of individuals into different employment types, we find a significant informal employment wage premium across the whole earnings distribution. Taking advantage of RES, 90:290-299, 2008matching approach and considering the possibility of misleading results due to different observed characteristics of formal and informal workers, we still find a wage gap in favour of informal sector workers.JEL codesJ21; J23; J24; J31

Regional pay? The public/private sector pay differential

ABSTRACT Regional pay? The public/private sector pay differential. Regional Studies. This paper extends the debate on making public sector wages more responsive to those in the private sector. The way in which the public/private sector wage differential is calculated dramatically alters conclusions, and far from there being substantial regional disparity in wages offered to public sector workers, any differences are predominantly concentrated in London and the South East where public sector workers are significantly disadvantaged relative to private sector workers. This has implications for staff recruitment and retention. Such findings question the need for regional market-facing pay, but highlight the necessity to revisit the London-weighting offered to public sector workers.

From Soviet to Europe: Returns to Education Puzzle in Bulgaria

This paper makes a systematic presentation of returns to education in Bulgaria, a country that has witnessed a number of dramatic structural changes over the last two decades. It examines the headway of returns to education for Bulgaria in two obverse economic regimes - from communism to EU membership. The findings show a steady increase in returns to education for both males and females until 2003. The average returns to one additional year of education rose from 1.1% in 1986 to 5.1% in 2003 for males and from 2.1% to 5.9% for females. Quantile regression estimations, between 1986 and 2003, evince that the most prominent increase in the wage premium occurred at the top end of the distribution, where the rate of returns to education, in particular for females increased from a negative and insignificant sign in 1986 to 7% in 2003. However, this increasing trend in returns to education seems to take an inverted-U-shape in 2007, the year when the country joined the EU, which poses a new puzzle to be resolved. To this end, the current paper introduces possible explanations for such a puzzle and sheds lights on a number of insightful policy implications.