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We will examine the effects of the level of education on wages in the business and non-business sectors in the Czech and Slovak Republics. It is often claimed that wages in the non-business sector are higher than in the business one. We will verify this hypothesis on real data. To compare the levels of wages, we use the methods of analysis of variance, or rank tests. In order to apply these tests, we will first need to transform the data to meet the conditions necessary for these methods to be applicable. We work with data from the years 2000 through 2017, and for several levels of education. This time span is long enough to make relevant calculations possible, as well as evaluation not only of the situation in the last year, but also the trend over the entire 18-year period. We will calculate the average wages and also the selected percentile measures: median, lower and upper quartiles, and 10% and 90% quantiles. All calculations and comparisons will be made for both countries. It will therefore be necessary to recalculate the wages to the same monetary unit (Euro) and to adjust them to the inflation rates, which are different in each country.

The Impact of Education on Wages in the Business and non-Business Sectors in the Czech and Slovak Republics