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The Gender Wage Gap in Croatia – Estimating the Impact of Differing Rewards by Means of Counterfactual Distributions

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  • Danijel Nestic

    ()
    (The Institute of Economics, Zagreb, Croatia)

Abstract

The aim of this paper is to estimate the size of, changes in, and main factors contributing to gender-based wage differentials in Croatia. It utilizes microdata from the Labor Force Surveys of 1998 and 2008 and applies both OLS and quantile regression techniques to assess the gender wage gap across the wage distribution. The average unadjusted gender wage gap is found to be relatively low and declining. This paper argues that employed women in Croatia possess higher-quality labor market characteristics than men, especially in terms of education, but receive much lower rewards for these characteristics. The Machado-Mata decomposition technique is used to estimate the gender wage gap as the sole effect of differing rewards. The results suggest that due to differing rewards the gap exceeds 20 percent on average - twice the size of the unadjusted gap - and that it increased somewhat between 1998 and 2008. The gap is found to be the highest at the lower-to-middle part of the wage distribution.

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Bibliographic Info

Article provided by The Institute of Economics, Zagreb in its journal Croatian Economic Survey.

Volume (Year): 12 (2010)
Issue (Month): 1 (April)
Pages: 83-119

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Handle: RePEc:iez:survey:ces-v12_04-2010_nestic

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Related research

Keywords: gender wage gap; quantile regression; Machado-Mata decomposition; Croatia;

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References

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  1. Llorens, Vanessa & De la Rica Goiricelaya, Sara & Dolado, Juan J., 2004. "Ceilings and Floors? Gender Wage Gaps by Education in Spain," DFAEII Working Papers 2005-01, University of the Basque Country - Department of Foundations of Economic Analysis II.
  2. repec:ese:iserwp:2005-25 is not listed on IDEAS
  3. Astrid Kunze, 2008. "Gender wage gap studies: consistency and decomposition," Empirical Economics, Springer, vol. 35(1), pages 63-76, August.
  4. Pastore, Francesco & Verashchagina, Alina, 2007. "When Does Transition Increase the Gender Wage Gap? An Application to Belarus," IZA Discussion Papers 2796, Institute for the Study of Labor (IZA).
  5. Angel López-Nicolás & Jaume García & Pedro J. Hernández, 2001. "How wide is the gap? An investigation of gender wage differences using quantile regression," Empirical Economics, Springer, vol. 26(1), pages 149-167.
  6. Elizabeth Brainerd, 2000. "Women in transition: Changes in gender wage differentials in Eastern Europe and the former Soviet Union," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(1), pages 138-162, October.
  7. Andrew Newell & Barry Reilly, 2000. "The Gender Pay Gap in the Transition from Communism: Some Empirical Evidence," William Davidson Institute Working Papers Series 305, William Davidson Institute at the University of Michigan.
  8. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
  9. Orazem, Peter & Vodopivec, Milan, 1995. "Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia," Staff General Research Papers 5270, Iowa State University, Department of Economics.
  10. Hiau Joo Kee, 2006. "Glass Ceiling or Sticky Floor? Exploring the Australian Gender Pay Gap," The Economic Record, The Economic Society of Australia, vol. 82(259), pages 408-427, December.
  11. James Albrecht & Anders Bjorklund & Susan Vroman, 2003. "Is There a Glass Ceiling in Sweden?," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 145-177, January.
  12. 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.
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