Abstract:

In this paper we investigate some of the determinants of wage inequality in 2012 for the case of Romania. We applied a logistic model to our data based on the wage equation developed by Mincer, using as explanatory variables the gender, the age, the residence area, the education, the major sectors of activity and the major occupational groups. Our results are in line with the findings of Mincer’s followers: the more educated an individual is the greater the chances of receiving higher earnings; also, women in Romania are less likely to earn above the median wage as compared to men, while the individuals in urban areas have higher chances in earning above the median wage, as compared to those employed in rural areas. When considering the economic characteristics of individuals, the results indicate that the employees working in Construction have the highest probability to earn above de median wage as compared to those working in Agriculture, while those employees with an occupation in the category of high skill occupations have 209.3% more chances to earn above the median wage than those in the category of low skill occupations.