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Despite a widespread assertion that wages are lower in the informal than formal economy, there have been few empirical evaluations of whether this is the case and even fewer studies of the gender variations in wage rates in the formal and informal economies. Consequently, whether there are wage benefits to formal employment for men and women is unknown. The aim of this paper is to evaluate the wage differential between formal and informal employment for men and women.

To evaluate the wage differential between the formal and informal economy for men and women, data are reported from a 2017 survey involving 8,533 household interviews conducted in Kosovo.

Using decomposition analysis and after controlling for other determinants of wage differentials, the finding is that the net hourly earnings of men in formal employment are 26% higher than men in informal employment and 14% higher for women in formal employment compared with women in informal employment.

Given the size of the wage differential, the costs for employers will need to significantly increase in terms of the penalties and risks of detection if informal employment is to be prevented, along with more formal employment opportunities using active labour market policies for vulnerable groups, perhaps targeted at men (who constitute 82.8% of those in informal employment).

This is one of the first studies to evaluate the differentials in wage rates in the formal and economy from a gender perspective.

This paper aims to investigate whether the conventional approach to estimating the private and social rates of return to education generates reliable findings when used in economies with chronically depressed labour markets.

Conventional techniques (the Mincer earnings function and the discounting method) are used to provide initial estimates of the private and social returns to education in Kosovo. However, this study argues that in countries with chronically depressed labour markets, such as in Kosovo, the conventional approach is likely to significantly underestimate the private and social returns from achieving a higher level of educational attainment. This study extends the estimation approach to take into account the greater probability of more highly educated Kosovars being: employed, employed in the formal and public sectors and having longer job tenure.

The extended approach to estimating rates of return to schooling generates higher private and social rates of return to education than the conventional approach. Moreover, in contrast to the findings of the conventional approach, the revised approach suggests that private and social rates of return are highest from completion of upper secondary and tertiary education.

The results indicate that if governments in economies with chronically depressed labour markets decide upon their educational priorities based on unadjusted rates of return, then resources may be misallocated.

The analysis presented in this paper suggests that conventional approaches to estimating private and social rates of return to education are not suitable for use in economies with chronically depressed labour markets. In addition, the paper provides the first comprehensive analysis of the rates of return to education in Kosovo. These results are used to provide a critique of the Kosovo Government’s recent educational priorities.

This paper sets out to examine the link between technological change and continuing training at a workplace level.

The paper hypothesises that workplaces subject to technological change have an increased demand for skills, which induces an increased provision of training. UK data from two waves (1998 and 2004) of the Workplace Employment Relations Survey (WERS) are used to investigate this hypothesis.

Workplaces undertaking technological change are more likely to train their workers and also to provide more days of training per worker. Team working is also associated with a greater number of days spent on training, as are the setting of training targets and the keeping of training records. Training intensity decreases with an increasing share of part‐time and manual employees. Conversely, where workplaces face difficulties in filling skilled vacancies, they provide more days of training.

The WERS training questions refer only to core experienced employees which, since this group may vary from one workplace to another, may not give a completely consistent measure of either absolute or relative training provision. Because the WERS panel (1998 and 2004) excludes both the dependent variable (training intensity) and the variable of interest (technical change), the analysis is restricted to cross‐section estimation. Causal implications of this analysis should be regarded as correspondingly tentative.

The findings suggest that one way to induce firms to provide more training is by enhanced incentives for firms to undertake more rapid technological change. In addition, if the current global economic downturn persists, evidence that operating in a declining market is associated with the provision of fewer training days may be of particular concern to training professionals and policy makers.

The paper provides empirical evidence concerning the interaction between technological change and training.