The wage model in the Galician labour market: Gender effects

Abstract

Purpose: We study the effects of personal features in the Galician labour market, as both self-employed people and employees who work for a firm.

Design/methodology/approach: We propose a wage model to estimate the probability of a person in working age being employee who works for a firm. After the model parameter estimation through binary logistic regression, we estimate the conditional probability to be an employee who works for a firm for different personal features. We do this to evaluate the real effect of personal features in the person role in the labour market, as employee who works for a firm or self-employed person.

Findings and originality/value: The probability to be an employee who works for a firm depends on the gender. The greater age, the lower is the probability of men and women that they will be employees who work for a firm. The probability of men to work for a firm is the same to all family size, whereas this probability for women is lower if the family size gests bigger. The greater corrected family income, the lower is the probability of men and women to work for a firm, but the percentages are different.

Research limitations/implications: This paper has been made during a moment of sustained economic growth. So, future researches could study the effect of the economic cycle in this topic.

Practical implications: The gender differences affects to the labour market.

Originality/value: This study considers as the most important variable the gender, and the effect of other explanatory variables on the different probabilities to be an employee who works for a firm change depending on the gender. We propose a new way to create the variable "corrected household income".