Advanced Search
MyIDEAS: Login to save this article or follow this journal

Emerging ethnic wage gap: Estonia during political and economic transition

Contents:

Author Info

  • Leping, Kristian-Olari
  • Toomet, Ott
Registered author(s):

    Abstract

    We analyse the ethnic wage gap in Estonia, a former Soviet republic and current EU member, which hosts a substantial Russian-speaking minority. The analysis covers a lengthy period from the final years of the Soviet Union until the first years of EU membership. We document the rise of a substantial wage gap among males in favour of the Estonian-speaking population. This result is robust with respect to controls for language skills, education, industry and occupation. The main factors causing the unexplained wage gap include different ethnicity-specific returns to education and working in the capital city. The gap for young and established workers is of equal size. We argue that the most plausible explanations are establishment-level segregation, possibly related to sorting and screening discrimination. Unobserved human capital, related to the segregated school system, may also play a certain role. Journal of Comparative Economics 36 (4) (2008) 599-619.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.sciencedirect.com/science/article/B6WHV-4T9CCVB-1/2/fc49d40c815ac63c936b3780c1c0f08d
    Download Restriction: Full text for ScienceDirect subscribers only

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Comparative Economics.

    Volume (Year): 36 (2008)
    Issue (Month): 4 (December)
    Pages: 599-619

    as in new window
    Handle: RePEc:eee:jcecon:v:36:y:2008:i:4:p:599-619

    Contact details of provider:
    Web page: http://www.elsevier.com/locate/inca/622864

    Related research

    Keywords: Wage decomposition Ethnicity Estonia Former Soviet Union;

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Olivier Jean Blanchard & Peter Diamond, 1990. "Ranking, Unemployment Duration, and Wages," NBER Working Papers 3387, National Bureau of Economic Research, Inc.
    2. Allanson, Paul & Atkins, Jonathan P & Hinks, Timothy, 2002. "No End to the Racial Wage Hierarchy in South Africa?," Review of Development Economics, Wiley Blackwell, Wiley Blackwell, vol. 6(3), pages 442-59, October.
    3. Jurajda, Stepan, 2003. "Gender wage gap and segregation in enterprises and the public sector in late transition countries," Journal of Comparative Economics, Elsevier, vol. 31(2), pages 199-222, June.
    4. Marianne Bertrand & Sendhil Mullainathan, 2004. "Are Emily and Greg More Employable Than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination," American Economic Review, American Economic Association, American Economic Association, vol. 94(4), pages 991-1013, September.
    5. Dolton, P J & Vignoles, A, 2002. "The Return on Post-compulsory School Mathematics Study," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 69(273), pages 113-41, February.
    6. Orazem, Peter F. & Vodopivec, Milan, 1999. "Male-female differences in labor market outcomes during the early transition to market : the case of Estonia and Slovenia," Policy Research Working Paper Series 2087, The World Bank.
    7. Kugler, Adriana D., 2002. "Employee Referrals and Efficiency Wages," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3682, C.E.P.R. Discussion Papers.
    8. Blackaby, D.H. & Leslie, D.G. & Murphy, P.D. & O'Leary, N.C., 2005. "Born in Britain: How are native ethnic minorities faring in the British labour market?," Economics Letters, Elsevier, vol. 88(3), pages 370-375, September.
    9. Dustmann, Christian & Fabbri, Francesca, 2000. "Language Proficiency and Labour Market Performance of Immigrants in the UK," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2487, C.E.P.R. Discussion Papers.
    10. Chiswick, Barry R. & Miller, Paul W., 2003. "The complementarity of language and other human capital: immigrant earnings in Canada," Economics of Education Review, Elsevier, Elsevier, vol. 22(5), pages 469-480, October.
    11. Alicia Adsera & Barry Chiswick, 2007. "Are there gender and country of origin differences in immigrant labor market outcomes across European destinations?," Journal of Population Economics, Springer, Springer, vol. 20(3), pages 495-526, July.
    12. Murray Leibbrandt & James Levinsohn & Justin McCrary, 2005. "Incomes in South Africa Since the Fall of Apartheid," NBER Working Papers 11384, National Bureau of Economic Research, Inc.
    13. Amelie Constant & Liliya Gataullina & Klaus F. Zimmermann, 2006. "Gender, Ethnic Identity and Work," Discussion Papers of DIW Berlin 643, DIW Berlin, German Institute for Economic Research.
    14. Antoni Calvó-Armengol & Matthew O. Jackson, 2004. "The Effects of Social Networks on Employment and Inequality," American Economic Review, American Economic Association, American Economic Association, vol. 94(3), pages 426-454, June.
    15. Pischke, Jörn-Steffen, 2003. "The Impact of Length of the School Year on Student Performance and Earnings: Evidence from the German Short School Years," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4074, C.E.P.R. Discussion Papers.
    16. Borjas, George J & Bratsberg, Bernt, 1996. "Who Leaves? The Outmigration of the Foreign-Born," The Review of Economics and Statistics, MIT Press, vol. 78(1), pages 165-76, February.
    17. John Bound & Richard B. Freeman, 1991. "What Went Wrong? The Erosion of Relative Earnings and Employment Among Young Black Men in the 1980s," NBER Working Papers 3778, National Bureau of Economic Research, Inc.
    18. Omar Arias & Gustavo Yamada & Luis Tejerina, 2004. "Education, Family Backgrounds and Racial Earnings Inequality in Brazil," Working Papers, Departamento de Economía, Universidad del Pacífico 04-04, Departamento de Economía, Universidad del Pacífico, revised 2004.
    19. Kahanec, Martin & Zaiceva, Anzelika, 2008. "Labor Market Outcomes of Immigrants and Non-Citizens in the EU: An East-West Comparison," IZA Discussion Papers 3420, Institute for the Study of Labor (IZA).
    20. Kenneth A. Kriz & Jaanika Meriküll & Alari Paulus & Karsten Staehr, 2007. "Why Do Individuals Evade Payroll And Income Taxation In Estonia?," University of Tartu - Faculty of Economics and Business Administration Working Paper Series, Faculty of Economics and Business Administration, University of Tartu (Estonia) 49, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    21. Rooth, Dan-Olof, 2007. "Implicit Discrimination in Hiring: Real World Evidence," IZA Discussion Papers 2764, Institute for the Study of Labor (IZA).
    22. Joseph G. Altonji, 1992. "The Effects of High School Curriculum on Education and Labor Market Outcomes," NBER Working Papers 4142, National Bureau of Economic Research, Inc.
    23. Charles Kroncke & Kenneth Smith, 1999. "The wage effects of ethnicity in Estonia," The Economics of Transition, The European Bank for Reconstruction and Development, The European Bank for Reconstruction and Development, vol. 7(1), pages 179-199, March.
    24. George J. Borjas & Richard B. Freeman & Lawrence F. Katz, 1996. "Searching for the Effect of Immigration on the Labor Market," NBER Working Papers 5454, National Bureau of Economic Research, Inc.
    25. Bhaumik, Sumon K. & Gang, Ira N. & Yun, Myeong-Su, 2005. "Ethnic Conflict and Economic Disparity: Serbians and Albanians in Kosovo," IZA Discussion Papers 1772, Institute for the Study of Labor (IZA).
    26. Rooth, Dan-Olof & Saarela, Jan, 2007. "Selection in migration and return migration: Evidence from micro data," Economics Letters, Elsevier, vol. 94(1), pages 90-95, January.
    27. P. A. Riach & J. Rich, 2002. "Field Experiments of Discrimination in the Market Place," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 112(483), pages 480-518, November.
    28. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier.
    29. Dan Black & Amelia Haviland & Seth Sanders & Lowell Taylor, 2006. "Why Do Minority Men Earn Less? A Study of Wage Differentials among the Highly Educated," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 300-313, May.
    30. Sattinger, Michael, 1996. "Search and discrimination," Labour Economics, Elsevier, Elsevier, vol. 3(2), pages 143-167, September.
    31. Cornell, Bradford & Welch, Ivo, 1996. "Culture, Information, and Screening Discrimination," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 104(3), pages 542-71, June.
    32. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    33. Heather Rose & Julian R. Betts, 2004. "The Effect of High School Courses on Earnings," The Review of Economics and Statistics, MIT Press, vol. 86(2), pages 497-513, May.
    34. Chiswick, Barry R & Miller, Paul W, 1995. "The Endogeneity between Language and Earnings: International Analyses," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 13(2), pages 246-88, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Ott Toomet & Marco van der Leij & Meredith Rolfe, 2012. "Social Networks and Labor Market Inequality between Ethnicities and Races," Tinbergen Institute Discussion Papers 12-120/II, Tinbergen Institute.
    2. Kenneth Smith, 2011. "Labor force participation in the Soviet and post-Soviet Baltic States," Economic Change and Restructuring, Springer, Springer, vol. 44(4), pages 335-355, November.
    3. Zuzana Brixiova, 2009. "Labour Market Flexibility in Estonia: What more Can be Done?," OECD Economics Department Working Papers 697, OECD Publishing.
    4. Merike Kukk & Karsten Staehr, 2013. "Income underreporting by households with business income. Evidence from Estonia," Bank of Estonia Working Papers, Bank of Estonia wp2013-6, Bank of Estonia, revised 26 Jul 2013.
    5. Aristei, David & Perugini, Cristiano, 2012. "Inequality and reforms in transition countries," Economic Systems, Elsevier, vol. 36(1), pages 2-10.
    6. Kerly Krillo & Jaan Masso, 2010. "The Part-Time/Full-Time Wage Gap In Central And Eastern Europe: The Case Of Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series, Faculty of Economics and Business Administration, University of Tartu (Estonia) 65, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    7. Laur Lilleoja & Willem Saris, 2014. "Testing a New Operationalization of the Basic Values on Estonian- and Russian-speaking Subpopulations in Estonia," Social Indicators Research, Springer, Springer, vol. 116(1), pages 153-172, March.
    8. Ott Toomet & Marco van der Leij & Meredith Rolfe, 2012. "Social Networks and Labor Market Inequality between Ethnicities and Races," Tinbergen Institute Discussion Papers 12-120/II, Tinbergen Institute.
    9. Jaan Masso & Kerly Krillo, 2011. "Labour Markets In The Baltic States During The Crisis 2008-2009: The Effect On Different Labour Market Groups," University of Tartu - Faculty of Economics and Business Administration Working Paper Series, Faculty of Economics and Business Administration, University of Tartu (Estonia) 79, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    10. Prosper F. Bangwayo-Skeete & Precious Zikhali, 2011. "Social exclusion and labour market outcomes: evidence from Eastern Europe and Central Asia," International Journal of Development Issues, Emerald Group Publishing, Emerald Group Publishing, vol. 10(3), pages 233-250, September.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:eee:jcecon:v:36:y:2008:i:4:p:599-619. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.