J31 - Wage Level and Structure; Wage DifferentialsReturn

The goal of the article is to analyse determinants of the gender pay gap in selected European countries. For my analysis, I used different types of data published by Eurostat, OECD, the Czech Statistical Office and the Ministry of Labour and Social Affairs of the Czech Republic. Determinants have been estimated using multiple regression analysis in selected European countries including the Czech Republic. The article is also focused on the Czech Republic data on the gross average salary in private and public sectors according to gender and administrative regions. Results show that the maternity benefits and a complicated situation in the labour market, where full-time jobs are preferred, and moreover the parental allowances are strong drivers of the gender pay gap in the Czech Republic. This implies that the issue of the gender pay gap in the Czech Republic is rather structural, influenced by the social system and the labour market features. Future research should take into consideration the tax allowances as well (specific tax credits on children and a spouse).

This paper designs and tests a comprehensive model, solved by statistical simulation, which describes and quantifies the effect of the tax system and lifelong income characteristics on the effective tax burden of a population or its segment. In the present application the model is structured and calibrated to analyse the category of employed persons in the Czech Republic. The Czech tax and levy system is shown to be mildly progressive, with a steep digression for very high incomes. It is also shown how the initial income endowment, lifelong income volatility and the minimum wage level impact the structure of effective tax rates, as well as expected unemployment.