Haitian Salary Drivers: Hedonic Wage Regression of the Haitian Labor Market

This paper uses hedonic regression analysis to examine the salaries of 876 observations provided by 79 independent employers throughout Haiti. Its results identify salary drivers that have a statistically significant effect on salaries and it estimates those effects in a meaningful way for employers and managers to use. Additionally, the research supports the myth of the country’s labor market that non- profit organizations (NGOs) pay employees a premium in salary above other organizational structure types but discredits that the premium is as large as commonly believed. The consequences of NGOs’ observed salary inflation are explained and alternatives are discussed. The paper concludes with the author identifying specific limitations of the research and outlining initiatives the Haitian government should adopt to improve the efficiency of the labor market that will encourage foreign direct investment.

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