EdPlaCo-MK: A tool for greater gender wage equality in Macedonia
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Transcript of EdPlaCo-MK: A tool for greater gender wage equality in Macedonia
EdPlaCo-MKA tool for greater gender wage equality in Macedonia- With reference to workers’characteristics and selectivity bias into
employment -
Dr. Marjan Petreski
TeamDr. Nikica Mojsoska Blazevski
Ms. Blagica Petreski
University American College SkopjeAssociation for economic research "Finance Think" Skopje
Manila, 19-21 June 2013
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 1 / 21
One minute question...
Who works in a company/institution that:
... pays equal wage for men and women?
... pays appropriate wage to your education, skills and experience?
... improves job satisfaction in an equal-pay environment?
... offers options for job sharing, flexible and part-time arrangements?
One minute question...
Who works in a company/institution that:
... pays equal wage for men and women?
... pays appropriate wage to your education, skills and experience?
... improves job satisfaction in an equal-pay environment?
... offers options for job sharing, flexible and part-time arrangements?
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 2 / 21
One minute question...
Who works in a company/institution that:
... pays equal wage for men and women?
... pays appropriate wage to your education, skills and experience?
... improves job satisfaction in an equal-pay environment?
... offers options for job sharing, flexible and part-time arrangements?
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 2 / 21
One minute question...
Who works in a company/institution that:
... pays equal wage for men and women?
... pays appropriate wage to your education, skills and experience?
... improves job satisfaction in an equal-pay environment?
... offers options for job sharing, flexible and part-time arrangements?
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 2 / 21
Objective of the research
To develop a web-based developmental tool to reduce gender wageinequality in Macedonia
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 3 / 21
Motivation“Balkan phenomenon”
In 2011, the gender wage gap in Macedonia was 12%
When adjusted to the observable characteristics of working labor, thegap jumps to 17% - “Balkan phenomenon”
Education, experience, age and other observables cannot explain thegap
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 4 / 21
Motivation“Balkan phenomenon”
In 2011, the gender wage gap in Macedonia was 12%
When adjusted to the observable characteristics of working labor, thegap jumps to 17% - “Balkan phenomenon”
Education, experience, age and other observables cannot explain thegap
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 4 / 21
Motivation“Balkan phenomenon”
In 2011, the gender wage gap in Macedonia was 12%
When adjusted to the observable characteristics of working labor, thegap jumps to 17% - “Balkan phenomenon”
Education, experience, age and other observables cannot explain thegap
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 4 / 21
Motivation
Disaggregated according to the skills level
the gap is very wide for low-skilled workers
Unadjusted wage gapLow skills 30%Medium skills 19%High skills 5%TOTAL 12%
Source: SILC, 2011
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 5 / 21
Motivation
Disaggregated according to the skills level
the gap is very wide for low-skilled workers
Unadjusted wage gapLow skills 30%Medium skills 19%High skills 5%TOTAL 12%
Source: SILC, 2011
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 5 / 21
MotivationLabor market characteristics of a transition economy
Low employment rate of 44%
Low participation rate of 64%
Large gender gaps in employment (16 p.p.) and activity (26 p.p)
traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)rural women - unpaid family workerthe large emigration and remmitances
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21
MotivationLabor market characteristics of a transition economy
Low employment rate of 44%
Low participation rate of 64%
Large gender gaps in employment (16 p.p.) and activity (26 p.p)
traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)rural women - unpaid family workerthe large emigration and remmitances
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21
MotivationLabor market characteristics of a transition economy
Low employment rate of 44%
Low participation rate of 64%
Large gender gaps in employment (16 p.p.) and activity (26 p.p)
traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)rural women - unpaid family workerthe large emigration and remmitances
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21
MotivationLabor market characteristics of a transition economy
Low employment rate of 44%
Low participation rate of 64%
Large gender gaps in employment (16 p.p.) and activity (26 p.p)
traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)
rural women - unpaid family workerthe large emigration and remmitances
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21
MotivationLabor market characteristics of a transition economy
Low employment rate of 44%
Low participation rate of 64%
Large gender gaps in employment (16 p.p.) and activity (26 p.p)
traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)rural women - unpaid family worker
the large emigration and remmitances
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21
MotivationLabor market characteristics of a transition economy
Low employment rate of 44%
Low participation rate of 64%
Large gender gaps in employment (16 p.p.) and activity (26 p.p)
traditional role of the woman as a housewife and child-raising person(Albanian ethnicity)rural women - unpaid family workerthe large emigration and remmitances
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 6 / 21
Motivation
Gender employment and participation gaps may shed some light ongender wage gap?
Large portion of working-age women remain outside of the labormarket/jobs
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 7 / 21
Motivation
Gender employment and participation gaps may shed some light ongender wage gap?
Large portion of working-age women remain outside of the labormarket/jobs
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 7 / 21
Motivation
Non-random selection into employment, especially among thelower-skilled women
low-wage female workers do not feature in the observed wagedistribution
If correct, then the “Balkan phenomenon”might lead to inflated,rather than to "unexplained" gender wage gap
If employed women in Macedonia tend to have relatively low-wagecharacteristics (compared to inactive and unemployed women), lowfemale employment rates become consistent with high gender wagegaps
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 8 / 21
Motivation
Non-random selection into employment, especially among thelower-skilled women
low-wage female workers do not feature in the observed wagedistribution
If correct, then the “Balkan phenomenon”might lead to inflated,rather than to "unexplained" gender wage gap
If employed women in Macedonia tend to have relatively low-wagecharacteristics (compared to inactive and unemployed women), lowfemale employment rates become consistent with high gender wagegaps
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 8 / 21
Motivation
Non-random selection into employment, especially among thelower-skilled women
low-wage female workers do not feature in the observed wagedistribution
If correct, then the “Balkan phenomenon”might lead to inflated,rather than to "unexplained" gender wage gap
If employed women in Macedonia tend to have relatively low-wagecharacteristics (compared to inactive and unemployed women), lowfemale employment rates become consistent with high gender wagegaps
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 8 / 21
Motivation
Non-random selection into employment, especially among thelower-skilled women
low-wage female workers do not feature in the observed wagedistribution
If correct, then the “Balkan phenomenon”might lead to inflated,rather than to "unexplained" gender wage gap
If employed women in Macedonia tend to have relatively low-wagecharacteristics (compared to inactive and unemployed women), lowfemale employment rates become consistent with high gender wagegaps
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 8 / 21
Literature
Substantial literature both on gender wage gap and employment gap
Some of the available literature includes: Gronau (1974); Beblo et al.(2003); Albrecht et al. (2004); Azmat et al. (2004); Fotin (2005);Petrongolo and Olivetti (2006) and others
No studies simultaneously examining the two
No study so far for Macedonia or other country from the WesternBalkan
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 9 / 21
Literature
Substantial literature both on gender wage gap and employment gap
Some of the available literature includes: Gronau (1974); Beblo et al.(2003); Albrecht et al. (2004); Azmat et al. (2004); Fotin (2005);Petrongolo and Olivetti (2006) and others
No studies simultaneously examining the two
No study so far for Macedonia or other country from the WesternBalkan
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 9 / 21
Literature
Substantial literature both on gender wage gap and employment gap
Some of the available literature includes: Gronau (1974); Beblo et al.(2003); Albrecht et al. (2004); Azmat et al. (2004); Fotin (2005);Petrongolo and Olivetti (2006) and others
No studies simultaneously examining the two
No study so far for Macedonia or other country from the WesternBalkan
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 9 / 21
Literature
Substantial literature both on gender wage gap and employment gap
Some of the available literature includes: Gronau (1974); Beblo et al.(2003); Albrecht et al. (2004); Azmat et al. (2004); Fotin (2005);Petrongolo and Olivetti (2006) and others
No studies simultaneously examining the two
No study so far for Macedonia or other country from the WesternBalkan
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 9 / 21
Policy innovationSolution for development
Establishing a web-supported developmental tool as a way of helpingprivate companies and public institutions to develop organizationalsolution for fair compensation of employees
Solution“Equal Pay in Companies —Macedonia”—EdPlaCo-MK
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 10 / 21
Policy innovationSolution for development
Awarding a logo as a label of fair payer
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 11 / 21
Methodology
The empirical approach will recuperate the counterfactual wagedistribution that would prevail if the selection into work is fullyrandom
alternative imputation techniques based on median regressions
do not require assumptions on the actual level of missing wages(matching approach)nor they require arbitrary exclusion restrictions and lack of robustness(Manski, 1989) (Heckman models)
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 12 / 21
Methodology
The empirical approach will recuperate the counterfactual wagedistribution that would prevail if the selection into work is fullyrandom
alternative imputation techniques based on median regressions
do not require assumptions on the actual level of missing wages(matching approach)nor they require arbitrary exclusion restrictions and lack of robustness(Manski, 1989) (Heckman models)
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 12 / 21
Methodology
The empirical approach will recuperate the counterfactual wagedistribution that would prevail if the selection into work is fullyrandom
alternative imputation techniques based on median regressions
do not require assumptions on the actual level of missing wages(matching approach)
nor they require arbitrary exclusion restrictions and lack of robustness(Manski, 1989) (Heckman models)
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 12 / 21
Methodology
The empirical approach will recuperate the counterfactual wagedistribution that would prevail if the selection into work is fullyrandom
alternative imputation techniques based on median regressions
do not require assumptions on the actual level of missing wages(matching approach)nor they require arbitrary exclusion restrictions and lack of robustness(Manski, 1989) (Heckman models)
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 12 / 21
Methodology
Repeated imputation considers the uncertainty about the reason formissing information (Rubin, 1987)
It is based on a probabilistic model, i.e. on repeated random drawsunder our chosen model for non-employmentHence, it considers the additional variability underlying the presence ofmissing values.
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 13 / 21
Methodology
Repeated imputation considers the uncertainty about the reason formissing information (Rubin, 1987)
It is based on a probabilistic model, i.e. on repeated random drawsunder our chosen model for non-employment
Hence, it considers the additional variability underlying the presence ofmissing values.
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 13 / 21
Methodology
Repeated imputation considers the uncertainty about the reason formissing information (Rubin, 1987)
It is based on a probabilistic model, i.e. on repeated random drawsunder our chosen model for non-employmentHence, it considers the additional variability underlying the presence ofmissing values.
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 13 / 21
Methodology
Innovativeness
alternative imputation techniques which proved stronger in making thedistributional assumptionsreflecting on the uncertainty related to the reason for missing wage.
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 14 / 21
Methodology
Innovativeness
alternative imputation techniques which proved stronger in making thedistributional assumptions
reflecting on the uncertainty related to the reason for missing wage.
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 14 / 21
Methodology
Innovativeness
alternative imputation techniques which proved stronger in making thedistributional assumptionsreflecting on the uncertainty related to the reason for missing wage.
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 14 / 21
Data
Survey of income and living conditions (SILC)
First collected in Macedonia in 2011
Advantages
First use of this datasetRich and large dataset
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21
Data
Survey of income and living conditions (SILC)
First collected in Macedonia in 2011
Advantages
First use of this datasetRich and large dataset
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21
Data
Survey of income and living conditions (SILC)
First collected in Macedonia in 2011
Advantages
First use of this datasetRich and large dataset
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21
Data
Survey of income and living conditions (SILC)
First collected in Macedonia in 2011
Advantages
First use of this dataset
Rich and large dataset
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21
Data
Survey of income and living conditions (SILC)
First collected in Macedonia in 2011
Advantages
First use of this datasetRich and large dataset
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 15 / 21
Current policy environment
Parliamentary Commission on Gender Equality
No evidence-based measuresNo focus on gender wage equality
Equal Opportunities Committees (EOCs) working at the local level
Macedonia endorsed the ILO Convention for equal wage for work ofequal value
Though, incorrectly implemented
However, results are largely absent
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21
Current policy environment
Parliamentary Commission on Gender Equality
No evidence-based measures
No focus on gender wage equality
Equal Opportunities Committees (EOCs) working at the local level
Macedonia endorsed the ILO Convention for equal wage for work ofequal value
Though, incorrectly implemented
However, results are largely absent
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21
Current policy environment
Parliamentary Commission on Gender Equality
No evidence-based measuresNo focus on gender wage equality
Equal Opportunities Committees (EOCs) working at the local level
Macedonia endorsed the ILO Convention for equal wage for work ofequal value
Though, incorrectly implemented
However, results are largely absent
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21
Current policy environment
Parliamentary Commission on Gender Equality
No evidence-based measuresNo focus on gender wage equality
Equal Opportunities Committees (EOCs) working at the local level
Macedonia endorsed the ILO Convention for equal wage for work ofequal value
Though, incorrectly implemented
However, results are largely absent
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21
Current policy environment
Parliamentary Commission on Gender Equality
No evidence-based measuresNo focus on gender wage equality
Equal Opportunities Committees (EOCs) working at the local level
Macedonia endorsed the ILO Convention for equal wage for work ofequal value
Though, incorrectly implemented
However, results are largely absent
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21
Current policy environment
Parliamentary Commission on Gender Equality
No evidence-based measuresNo focus on gender wage equality
Equal Opportunities Committees (EOCs) working at the local level
Macedonia endorsed the ILO Convention for equal wage for work ofequal value
Though, incorrectly implemented
However, results are largely absent
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 16 / 21
Policy impact
At the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and define operational solutions for fairpayment to men and women
Attract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversity
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
Policy impact
At the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and define operational solutions for fairpayment to men and women
Attract the best workers
Prepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversity
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
Policy impact
At the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and define operational solutions for fairpayment to men and women
Attract the best workersPrepare best practices related to remuneration
Improve the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversity
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
Policy impact
At the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and define operational solutions for fairpayment to men and women
Attract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimage
Reduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversity
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
Policy impact
At the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and define operational solutions for fairpayment to men and women
Attract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining process
Increase the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversity
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
Policy impact
At the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and define operational solutions for fairpayment to men and women
Attract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institution
Improve overall corporate governanceAchieve competitive advantage by promoting gender diversity
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
Policy impact
At the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and define operational solutions for fairpayment to men and women
Attract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governance
Achieve competitive advantage by promoting gender diversity
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
Policy impact
At the employers’level, EdPlaCo-MK will help identifying thecauses of wage inequality and define operational solutions for fairpayment to men and women
Attract the best workersPrepare best practices related to remunerationImprove the transparency of the remuneration policy and build betterimageReduce information assymetry in the collective bargaining processIncrease the overall motivation and job satisfacion in thecompany/institutionImprove overall corporate governanceAchieve competitive advantage by promoting gender diversity
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 17 / 21
Policy impact
At the employee’level, EdPlaCo-MK will
Provide employees with a yardstick against which will estimate theirfair wageSteer motivation on the workplace and potentially raise productivityImprove employees’bargaining powerProvide incentives for greater labor supply
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21
Policy impact
At the employee’level, EdPlaCo-MK will
Provide employees with a yardstick against which will estimate theirfair wage
Steer motivation on the workplace and potentially raise productivityImprove employees’bargaining powerProvide incentives for greater labor supply
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21
Policy impact
At the employee’level, EdPlaCo-MK will
Provide employees with a yardstick against which will estimate theirfair wageSteer motivation on the workplace and potentially raise productivity
Improve employees’bargaining powerProvide incentives for greater labor supply
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21
Policy impact
At the employee’level, EdPlaCo-MK will
Provide employees with a yardstick against which will estimate theirfair wageSteer motivation on the workplace and potentially raise productivityImprove employees’bargaining power
Provide incentives for greater labor supply
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21
Policy impact
At the employee’level, EdPlaCo-MK will
Provide employees with a yardstick against which will estimate theirfair wageSteer motivation on the workplace and potentially raise productivityImprove employees’bargaining powerProvide incentives for greater labor supply
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 18 / 21
Policy impact
At the government level, the project will
Provide evidence for better design of policies related to gender equalitySpur the debate about the gender wage inequality and advocate forinclusion of wage equality policies in the Action plan for gender equality
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 19 / 21
Policy impact
At the government level, the project will
Provide evidence for better design of policies related to gender equality
Spur the debate about the gender wage inequality and advocate forinclusion of wage equality policies in the Action plan for gender equality
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 19 / 21
Policy impact
At the government level, the project will
Provide evidence for better design of policies related to gender equalitySpur the debate about the gender wage inequality and advocate forinclusion of wage equality policies in the Action plan for gender equality
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 19 / 21
Therefore...
Those of you who did not raise hands at the beginning
Are much welcome to work in an environment featuring gender equalityin Macedonia after the implementation of this project
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 20 / 21
Therefore...
Those of you who did not raise hands at the beginning
Are much welcome to work in an environment featuring gender equalityin Macedonia after the implementation of this project
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 20 / 21
Thank you very much for your attention!
M. Petreski (UACS) EdPlaCo-MK Manila, 19-21 June 2013 21 / 21