2023-09-28 14:46:10 +00:00
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abstract: 'Purpose Despite a widespread assertion that wages are lower in the
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informal than formal economy, there have been few empirical evaluations
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of whether this is the case and even fewer studies of the gender
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variations in wage rates in the formal and informal economies.
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Consequently, whether there are wage benefits to formal employment for
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men and women is unknown. The aim of this paper is to evaluate the wage
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differential between formal and informal employment for men and women.
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Design/methodology/approach To evaluate the wage differential between
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the formal and informal economy for men and women, data are reported
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from a 2017 survey involving 8,533 household interviews conducted in
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Kosovo. Findings Using decomposition analysis and after controlling for
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other determinants of wage differentials, the finding is that the net
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hourly earnings of men in formal employment are 26\% higher than men in
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informal employment and 14\% higher for women in formal employment
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compared with women in informal employment. Practical implications Given
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the size of the wage differential, the costs for employers will need to
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significantly increase in terms of the penalties and risks of detection
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if informal employment is to be prevented, along with more formal
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employment opportunities using active labour market policies for
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vulnerable groups, perhaps targeted at men (who constitute 82.8\% of
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those in informal employment). Originality/value This is one of the
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first studies to evaluate the differentials in wage rates in the formal
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and economy from a gender perspective.'
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affiliation: 'Williams, C (Corresponding Author), Univ Sheffield, Management Sch,
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Sheffield, S Yorkshire, England.
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Williams, Colin, Univ Sheffield, Management Sch, Sheffield, S Yorkshire, England.
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Gashi, Ardiana, Univ Prishtina, Econ, Prishtina, Kosovo.'
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author: Williams, Colin and Gashi, Ardiana
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author-email: 'c.c.williams@sheffield.ac.uk
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Ardiana.Gashi@uni-pr.edu'
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author_list:
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- family: Williams
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given: Colin
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- family: Gashi
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given: Ardiana
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da: '2023-09-28'
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doi: 10.1108/JES-01-2021-0019
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earlyaccessdate: MAY 2021
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files: []
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issn: 0144-3585
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journal: JOURNAL OF ECONOMIC STUDIES
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keywords: Informal economy; Gender inequality; Wage gap; Public policy; Kosovo
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keywords-plus: 'SHADOW ECONOMY; LABOR-MARKET; MARRIAGE; ENTREPRENEURSHIP; PARTICIPATION;
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PENALTIES; COUNTRIES; LESSONS; IMPACT'
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language: English
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month: MAY 6
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number: '4'
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number-of-cited-references: '79'
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orcid-numbers: 'Williams, Colin C/0000-0002-3610-1933
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Gashi, Ardiana/0000-0002-9225-6788'
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pages: 735-750
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papis_id: 1fc4e3091521d17b0d5027f045397b5a
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ref: Williams2022evaluatingwage
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researcherid-numbers: 'Williams, Colin C/B-1198-2016
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'
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times-cited: '1'
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title: 'Evaluating the wage differential between the formal and informal economy:
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a gender perspective'
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2023-10-01 08:15:07 +00:00
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type: article
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2023-09-28 14:46:10 +00:00
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unique-id: WOS:000654446300001
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usage-count-last-180-days: '4'
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usage-count-since-2013: '8'
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volume: '49'
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web-of-science-categories: Economics
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year: '2022'
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