Employment Vulnerability, Wages, and Subjective Well-Being in Kyrgyzstan

Abstract

This research examined the impact of employment vulnerability on wages and subjective well-being in Kyrgyzstan with special reference to gender-based differences. Analyses were based on panel data for 2010-2013 and 2016 from the “Life in Kyrgyzstan” household survey. A panel data fixed-effects model with Instrumental Variable within the Lewbel (2012) method was applied to estimate an earnings equation. Results of estimations of both earnings and of subjective well-being indicated increased employment vulnerability. Employment in vulnerable jobs was not compensated at a higher rate. Analysis of subjective well-being by quintile groups of earnings showed that, for both men and women, women’s employment vulnerability was most evident in groups with the lowest earnings. Women experienced this negative effect more severely. Given these empirical findings, government labour-market policy should not focus on increasing employment alone but should also address the issue of vulnerability of employment, improvement of working conditions, and expanding the employment of women.