The determinants of wage distribution in Malta

Abstract

Over the years, significant changes in the demographics of the labour force have been recorded. Subsequently, the structure of the labour market has changed over the years. The main scope of this dissertation is that of identifying a set of determinants that affect the wage distribution in Malta. In pursuance of this objective a cross-sectional model for the years 2005 and 2015 is estimated using Labour Force Survey (LFS) microdata. The model created for this study offers the possibility to analyse how the weekly wage is affected by such determinants like gender, age, educational level, occupation type, economic activity, work type, years of experience in the current job and nationality. Signs of coefficients obtained in results are in line with what expected and reviewed in empirical literature.