Trends in Wage and Non-wage Discrimination between Regular and Non-regular Workers: 2004-2016

Abstract

This study estimates the discrimination against non-regualr workers in wages and non-wages for 13 years from 2004 to 2016. The non-wages means benefit fringes which consist of bonuses, severance pay, overtime pay, and paid leave. Both wages and non-wages differentials could be decomposed by the Oaxaca-Blinder decomposition suggested by Fortin(2008), which would reduce the bias of the explanatory part estimate. The first result is that the wage discrimination had widened recently since the mid-2000s. However, the discrimination estimate was found to be smaller than the previous estimation results. Second, benefit fringes discrimination is very large. The discrimination share is also large around 40-60%. Both are increasing over time. Third, as of 2009, the trend of such discrimination gap and discrimination share has changed discontinuously. In both wages and non-wages, the discrimination against non-regular workers jumped significantly around 2009, and thereafter it does not return to the level before 2009.