Abstract:

This paper focused on the analyzing the key drivers of differentiating the high level salaries from the middle and low ones in the Czech Republic. Two segments were examined separately: employees at the managing position and employees who are not at the managing position. The main data source was the Survey of Adult Skills (PIAAC). Importance of the different predictors in the differentiating the high level salaries from the others was examined by Stochastic Gradient Boosting approach. The evaluation of the final model was conducted based on the AUC value using the testing set: for em-ployees who are at managing position the AUC is equal to 0,7304; for the segment of employees who are not at the managing position the AUC is 0.8176. For both segments the level of education, gend-er, regionality, area of study, learning activities, index of readiness to learn and index of using ICT skills at home play a significant role in the differentiating between the high monthly earnings and middle or low earnings.