Endowment and remuneration effects in wage disparities

Let's look at the results of the decomposition in detail!

Filtering aspects
After having filtered the complete sample comprising 10006 people by considering simultaneously four filtering factors (total working time, data on income available, age, employment status) a filtered sample of 6269 people was suitable for the decomposition analysis.

Pay gap by percentile
The curve of the filtered sample - leaving out pensioners, career-starters, etc. -shows a continuously rise which means that the pay gap is smaller in case of groups with lower income and it is larger in case of groups with higher income.

Type of settlement

According to the method of decomposition the county towns show a remuneration effect of 3.6% while the villages shows a remuneration effect of 1.4% compared to Budapest as a reference point.

County differences

According to the decomposition method Vas and Békés counties diverge compared to Budapest as reference point concerning the endowment effect (2.6% and 2.7%, respectively).

A Having children?

Compared to the group of people who do not have child(ren) having children means a remuneration effect of 0.4%.

Business sector

Taking the business sector as the reference point, the remuneration effect is negative in the public sector, but it is depreciated by the endowment effect of 1.1%.



Industries (NACE)

In all industries the remuneration effect is negative, which means that women are less discriminated in all industries compared to agriculture. In most cases this result is counterbalanced (depreciated) by high, positive endowment effect.

Occupation (ISCO)

Compared to the reference group which is the group of 'legislators, general directors, chief officials of interest representation', the highest remuneration effect can be found in case of the group of 'occupations requiring higher or secondary educational qualifications' (4%), but it is also high in case of 'machinists, machinery assemblers, drivers' (2.9%). The endowment effect is quite high in the group of 'occupation related to industry and construction' (55%).

Status at workplace

Compared to physical workers as a reference group we can state that women working in mental, administrative jobs are exposed to high remuneration effect (7.4%). In case of women in managerial positions the remuneration effect is lower (2.2%), but the endowment effect of 6.2% is settled on it.

Level of education

The reference group is the group of people having level of education maximum of 8 years of elementary school. On the one hand in parallel with the higher educational level, the remuneration effect also rises, in case of people with higher (college or university) education this effect is 22.8%. On the other hand the endowment effect is the highest in case of people with lower level of education (18.8%), and it is negative in case of groups with higher educational level.

Number of employees in the company

Compared to the group of companies employing less than 10 employees as the reference group the most remarkable remuneration effect (3.6%) can be observed in case of companies employing 50-100 employees.

Proportion of women in the company

The increase in the proportion of women usually results in a rising, but negative remuneration effect - this shows that the higher the proportion of women is compared to the reference point (0-20%), the more discriminated men become.

Work experience (years of experience at work)

Along with the increasing work experience the remuneration effect also rises, the biggest leap can be found between employees working for 8-10 years and employees working for 11-20 years as the remuneration effect is 8.7% in the first group and 34.8% in the latter.

How many times have you been unemployed?

The number of periods without jobs contributes neither to the endowment effect, nor the remuneration effect.

Type of employment contract

The fixed term contract is not accompanied by either remuneration or endowment effect.

Trade union membership

Being a member of the trade union does not contribute to the endowment effect, and slightly decreases the remuneration effect.