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The Determinants of Labor Market Earnings in a Small Caribbean Island: The Case of Dominica
journal contributionposted on 2023-06-07, 19:37 authored by Barry Reilly, Annelle Bellony
This paper uses the Labor Force Survey (LFS) from 1999 to investigate the labor market earnings determination process in the small Eastern Caribbean island of Dominica. Given the interval coded nature of the earnings data reported for the LFS, an interval regression model estimated by maximum likelihood techniques is used. A key empirical finding is that the Dominica labor market places a relatively high valuation on formally acquired post-primary human capital assets. We also find that the ceteris paribus public sector pay premium is relatively large and suggests public sector workers are securing a high rent through employment in this sector. A gender pay gap of approximately 20 percent is detected and there is also evidence of a sizeable ethnic pay disadvantage for male members of the islands indigenous population.
JournalJournal of Developing Areas
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- Economics Publications
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