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The Determinants of Labor Market Earnings in a Small Caribbean Island: The Case of Dominica

journal contribution
posted 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.

History

Publication status

  • Published

Journal

Journal of Developing Areas

ISSN

0022-037X

Issue

1

Volume

43

Page range

65-85

Department affiliated with

  • Economics Publications

Full text available

  • No

Peer reviewed?

  • Yes

Legacy Posted Date

2012-02-06

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