We estimate heterogeneous wage structure effects for country-pairs within the EU by the Causal Forest algorithm, then identify groups of workers with the highest and lowest discrepancies in terms of wage differentials. We find that, in the East-West comparison, age is the most consistently...

Men's labor income is on average higher than that of women practically everywhere. This gender pay gap can be decomposed into two components: on the one hand men usually work in better paid jobs (the sorting effect), and, on the other, even in the same occupation men get higher wages (the...

The Blinder-Oaxaca decomposition was developed in order to detect and characterize discriminatory treatment, and one of its most frequent use has been the study of wage discrimination. It recognizes that the mere difference between the average wages of two groups may not mean discrimination (in...

We estimate the gender pay gap with the traditional OLS based Blinder-Oaxaca decomposition, and with an extension using Random Forest (RF) regressions on Hungarian data for the years 2008-2016. Random Forests perform better as predictors out-of-sample and yield consistently lower estimates for...

This paper reports the results of a Blinder-Oaxaca style decomposition analysis on Hungarian matched employer-employee data to study the gender pay-gap. We carry out the decomposition by Random Forest regressions. The raw gap in our horizon (2008-2016) is increasing, but we find that the wage...

It is well known that the size of the informal (black or grey) economy causes serious fiscal problems for Hungary. This study makes an attempt to quantify the budgetary and macroeconomic effects of different ways of widening the formal sector (whitening”) with the help of a model. It turns out...

The phenomenon of infrequent price changes has troubled economists for decades. Intuitively one feels that for most price-setters there exists a range of inaction, i.e. a substantial measure of the states of the world, within which they do not wish to modify prevailing prices. However, basic...

We study a family of models of tax evasion, where a flat-rate tax finances only the provision of public goods, neglecting audits and wage differences. We focus on the comparison of two modeling approaches. The first is based on optimizing agents, who are endowed with social preferences, their...

Savings behaviour seems to exhibit heterogeneity across nations, and within nations, too. Large changes in saving rates have been observed in the last decades that can be viewed as signs of the arbitrariness of saving. There is a long tradition in the savings literature that separates people...

Macroeconomic modelling is a recent development within the rapidly advancing field of agentbased modelling. Like older macromodels macro ABMs must also feature a well-designed consumption-savings block. As the microeconomic ABM literature on savings is non-existent researchers had to resort to...