An Empirical Investigation on Wage Inequality in Estonian Firms

Kevin Kanarbik
Wage inequality has been thoroughly researched throughout the world, but less research has been conducted on the general wage inequality of Estonia. The country is intriguing because its wage inequality is high with its gender wage gap being the highest in Europe. The purpose of this thesis is to empirically explore matched employee-employer data of Estonia from 2006 to 2014 in order to find correlations between with-in firm wage inequality and other firm traits. In addition, the data is studied with linear regression and other predictive models. A secondary goal is to find a correlation between wage inequality and company growth. We find that wage inequality often depends on the sector, region, average wage and size of companies with inequality generally decreasing from 2006 to 2014. The exploratory and predictive analysis found that wage inequality is moderately correlated with firm growth, size and average wage.
Graduation Thesis language
Graduation Thesis type
Master - Software Engineering
Rajesh Sharma, Jaan Masso
Defence year