Between-Field Wage Differences in Central and Eastern European Countries: Role of Gender and Cognitive Skills

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Abstract

This study aims to examine the economic returns to different fields of study in Central and Eastern European (CEE) countries while controlling for many other explanatory variables such as personal, household and occupational characteristics or cognitive and job-related skills. OLS regression analyses were carried out using PIAAC data (2011/12). The results suggest that between-field wage differences are quite small (Engineering and Social Sciences have a 12 percent pay premium over Education) or almost negligible in CEE countries. Men who graduate in Engineering tend to receive a much higher premium over Education and, on the contrary, women engineers have even bit lower average earnings than women who graduate in Education – the gender wage gap is the highest in this technical field of study. Individuals who graduate in Engineering and Social Sciences with high numeracy and literacy skills also receive higher earnings, but this was not confirmed for other majors.

Author

• Petra Raudenská, Institute of Sociology of the Czech Academy of Sciences