“…The following personal and household characteristics are included, given that wage levels have been previously identified as significantly associated with marital status (Bardasi and Taylor, 2008; Datta Gupta et al , 2007; Killewald and Gough, 2013; Watson and McLanahan, 2011), age and education level (Becker, 1975; Borjas, 2005) and the presence of children and elderly in household (Adda et al , 2017, Becker, 1975; Kleven et al , 2019, Cukrowska-Torzewska and Matysiak, 2018):- Marital status – a dummy variable for marital status is included, taking a value of 1 for married individuals and zero otherwise
- Age – to assess for the non-linear relationship between age and wages, the model includes a variable measuring age of the employee and the age square.
- Educational level – three dummy variables are included in the model: a group 2 dummy variable with value of 1 if a person's highest completed education was secondary or post-secondary vocational education and zero otherwise; group 3 is set to 1 for persons whose highest educational attainment was a completed graduate tertiary degree, zero otherwise; and group 4 represents individuals that have completed post-graduate tertiary degree. The reference category refers to employees who have not completed any schooling or whose highest completed education was primary or lower secondary education.
- Children – in line with previous studies, the model includes a measure for the presence of children, with a binary variable indicating if the household has children under the age of 15.
- Presence of elderly people in household – a dichotomous variable is included identifying individuals that live in households with members aged 65 or older.
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