IDEAS home Printed from https://ideas.repec.org/a/spr/soinre/v155y2021i3d10.1007_s11205-021-02620-y.html
   My bibliography  Save this article

When Opportunity Knocks: Confronting Theory and Empirics About Dynamics of Gender Wage Inequality

Author

Listed:
  • Joanna Tyrowicz

    (FAME|GRAPE
    University of Warsaw
    IZA)

  • Lucas Augusto van der Velde

    (FAME|GRAPE
    Warsaw School of Economics)

Abstract

We present empirical evidence that large structural shocks are followed by changes in labor market inequality. Specifically, we study short-run fluctuations in adjusted gender wage gaps (unequal pay for equal work) following episodes of structural shocks in the labor markets, using several decades of individual data for a wide selection of transition countries. We find that for cohorts who entered the labor market after the onset of transition. Labor market shocks lead to significant declines in the gender wage gap. This decrease is driven mostly by episodes experienced among cohorts who enter the labor market during the transition. By contrast, we fail to find any significant relation for cohorts already active in the labor market at the time of transition. We provide plausible explanations based on sociological and economic theories of inequality.

Suggested Citation

  • Joanna Tyrowicz & Lucas Augusto van der Velde, 2021. "When Opportunity Knocks: Confronting Theory and Empirics About Dynamics of Gender Wage Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(3), pages 837-864, June.
    • Handle: RePEc:spr:soinre:v:155:y:2021:i:3:d:10.1007_s11205-021-02620-y
    DOI: 10.1007/s11205-021-02620-y
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11205-021-02620-y
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s11205-021-02620-y?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Daniel Münich & Jan Svejnar & Katherine Terrell, 2005. "Returns to Human Capital Under The Communist Wage Grid and During the Transition to a Market Economy," The Review of Economics and Statistics, MIT Press, vol. 87(1), pages 100-123, February.
    2. Ganguli, Ina & Terrell, Katherine, 2006. "Institutions, markets and men's and women's wage inequality: Evidence from Ukraine," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 200-227, June.
    3. Alessandra Fogli & Raquel Fernandez, 2009. "Culture: An Empirical Investigation of Beliefs, Work, and Fertility," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 146-177, January.
    4. Claudia Goldin & Claudia Olivetti, 2013. "Shocking Labor Supply: A Reassessment of the Role of World War II on Women's Labor Supply," American Economic Review, American Economic Association, vol. 103(3), pages 257-262, May.
    5. Thomas Dohmen & Hartmut F. Lehmann & Mark E. Schaffer, 2014. "Wage Policies of a Russian Firm and the Financial Crisis of 1998: Evidence from Personnel Data, 1997 to 2002," ILR Review, Cornell University, ILR School, vol. 67(2), pages 504-531, April.
    6. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2007. "The effects of competition and equal treatment laws on gender wage differentials [‘Models of job discrimination’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 22(50), pages 236-287.
    7. Vera A. Adamchik & Arjun S. Bedi, 2003. "Gender pay differentials during the transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 697-726, December.
    8. Orley Ashenfelter & Ronald Oaxaca, 1987. "The Economics of Discrimination Thirty Years Later: Economists Enter the Courtroom," Working Papers 596, Princeton University, Department of Economics, Industrial Relations Section..
    9. Dohmen, Thomas & Lehmann, Hartmut & Zaiceva, Anzelika, 2008. "The gender earnings gap inside a Russian firm : first evidence from personnel data - 1997 to 2002," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 157-179.
    10. Hugo Ñopo, 2008. "Matching as a Tool to Decompose Wage Gaps," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 290-299, May.
    11. Ricardo Hausmann & Lant Pritchett & Dani Rodrik, 2005. "Growth Accelerations," Journal of Economic Growth, Springer, vol. 10(4), pages 303-329, December.
    12. Karolina Goraus & Joanna Tyrowicz & Lucas van der Velde, 2017. "How (Not) to make women work?," GRAPE Working Papers 1, GRAPE Group for Research in Applied Economics.
    13. Pastore, Francesco & Verashchagina, Alina, 2006. "Private returns to human capital over transition: A case study of Belarus," Economics of Education Review, Elsevier, vol. 25(1), pages 91-107, February.
    14. Alberto Alesina & Paola Giuliano, 2010. "The power of the family," Journal of Economic Growth, Springer, vol. 15(2), pages 93-125, June.
    15. Tyrowicz, Joanna & van der Velde, Lucas, 2018. "Labor reallocation and demographics," Journal of Comparative Economics, Elsevier, vol. 46(1), pages 381-412.
    16. Elizabeth Brainerd, 2000. "Women in Transition: Changes in Gender Wage Differentials in Eastern Europe and the Former Soviet Union," ILR Review, Cornell University, ILR School, vol. 54(1), pages 138-162, October.
    17. Stephanie Seguino, 2007. "PlusCa Change? evidence on global trends in gender norms and stereotypes," Feminist Economics, Taylor & Francis Journals, vol. 13(2), pages 1-28.
    18. Dohmen, Thomas & Lehmann, Hartmut & Zaiceva, Anzelika, 2008. "The gender earnings gap inside a Russian firm : first evidence from personnel data - 1997 to 2002," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 157-179.
    19. repec:fth:prinin:216 is not listed on IDEAS
    20. Jolliffe, Dean & Campos, Nauro F., 2005. "Does market liberalisation reduce gender discrimination? Econometric evidence from Hungary, 1986-1998," Labour Economics, Elsevier, vol. 12(1), pages 1-22, February.
    21. Stefan Bauernschuster & Helmut Rainer, 2012. "Political regimes and the family: how sex-role attitudes continue to differ in reunified Germany," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(1), pages 5-27, January.
    22. Michał Grajek, 2003. "Gender Pay Gap in Poland," Economic Change and Restructuring, Springer, vol. 36(1), pages 23-44, March.
    23. Stiglitz, Joseph E, 1973. "Approaches to the Economics of Discrimination," American Economic Review, American Economic Association, vol. 63(2), pages 287-295, May.
    24. Francine D. Blau & Lawrence M. Kahn, 2003. "Understanding International Differences in the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 106-144, January.
    25. Ashenfelter, Orley & Oaxaca, Ronald, 1987. "The Economics of Discrimination: Economists Enter the Courtroom," American Economic Review, American Economic Association, vol. 77(2), pages 321-325, May.
    26. Kerwin Kofi Charles & Jonathan Guryan & Jessica Pan, 2018. "The Effects of Sexism on American Women: The Role of Norms vs. Discrimination," NBER Working Papers 24904, National Bureau of Economic Research, Inc.
    27. Lehmann, Hartmut & Terrell, Katherine, 2006. "The Ukrainian labor market in transition: Evidence from a new panel data set," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 195-199, June.
    28. Joanna Tyrowicz & Lucas van der Velde & Irene van Staveren, 2018. "Does Age Exacerbate the Gender-Wage Gap? New Method and Evidence From Germany, 1984–2014," Feminist Economics, Taylor & Francis Journals, vol. 24(4), pages 108-130, October.
    29. Jennifer Hunt, 2002. "The Transition in East Germany: When Is a Ten-Point Fall in the Gender Wage Gap Bad News?," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 148-169, January.
    30. Steven J. Davis & John Haltiwanger, 1992. "Gross Job Creation, Gross Job Destruction, and Employment Reallocation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(3), pages 819-863.
    31. Solomon W. Polachek & Jun Xiang, 2009. "The Gender Pay Gap across Countries: A Human Capital Approach," SOEPpapers on Multidisciplinary Panel Data Research 227, DIW Berlin, The German Socio-Economic Panel (SOEP).
    32. Gérard Roland, 2008. "Fast-Moving and Slow-Moving Institutions," International Economic Association Series, in: János Kornai & László Mátyás & Gérard Roland (ed.), Institutional Change and Economic Behaviour, chapter 7, pages 134-159, Palgrave Macmillan.
    33. Karolina Goraus & Joanna Tyrowicz, 2014. "Gender Wage Gap in Poland – Can It Be Explained by Differences in Observable Characteristics?," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 36.
    34. Orazem, Peter & Vodopivec, Milan, 1997. "Value of Human Capital in Transition Market: Evidence from Slovenia September 1996," Staff General Research Papers Archive 5126, Iowa State University, Department of Economics.
    35. Dohmen, Thomas & Lehmann, Hartmut & Zaiceva, Anzelika, 2008. "The gender earnings gap inside a Russian firm : first evidence from personnel data - 1997 to 2002," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 157-179.
    36. Andrew Newell & Barry Reilly, 1999. "Rates of Return to Educational Qualifications in the Transitional Economies," Education Economics, Taylor & Francis Journals, vol. 7(1), pages 67-84.
    37. Gorodnichenko, Yuriy & Sabirianova Peter, Klara, 2005. "Returns to schooling in Russia and Ukraine: A semiparametric approach to cross-country comparative analysis," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 324-350, June.
    38. Orazem, Peter F. & Vodopivec, Milan, 1997. "Value of human capital in transition to market: Evidence from Slovenia," European Economic Review, Elsevier, vol. 41(3-5), pages 893-903, April.
    39. Orley Ashenfelter & Ronald Oaxaca, 1987. "The Economics of Discrimination Thirty Years Later: Economists Enter the Courtroom," Working Papers 596, Princeton University, Department of Economics, Industrial Relations Section..
    40. Karolina Goraus & Joanna Tyrowicz & Lucas Velde, 2017. "Which Gender Wage Gap Estimates to Trust? A Comparative Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(1), pages 118-146, March.
    41. Campos, Nauro F. & Jolliffe, Dean, 2003. "After, before and during: returns to education in Hungary (1986-1998)," Economic Systems, Elsevier, vol. 27(4), pages 377-390, December.
    42. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-661, September.
    43. Kornai Janos, 1994. "Transformational Recession: The Main Causes," Journal of Comparative Economics, Elsevier, vol. 19(1), pages 39-63, August.
    44. Jeff Biddle & Daniel Hamermesh, 2013. "Wage discrimination over the business cycle," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-19, December.
    45. Daron Acemoglu & David H. Autor & David Lyle, 2004. "Women, War, and Wages: The Effect of Female Labor Supply on the Wage Structure at Midcentury," Journal of Political Economy, University of Chicago Press, vol. 112(3), pages 497-551, June.
    46. Thomas Dohmen & Hartmut Lehmann & Anzelika Zaiceva, 2008. "The Gender Earnings Gap inside a Russian Firm: First Evidence from Personnel Data - 1997 to 2002 ; Updated Version," ESCIRRU Working Papers 6, DIW Berlin, German Institute for Economic Research.
    47. Barbara F. Reskin & Denise D. Bielby, 2005. "A Sociological Perspective on Gender and Career Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 71-86, Winter.
    48. Huber, Martin & Lechner, Michael & Wunsch, Conny, 2013. "The performance of estimators based on the propensity score," Journal of Econometrics, Elsevier, vol. 175(1), pages 1-21.
    49. Boelmann, Barbara & Raute, Anna & Schönberg, Uta, 2020. "Wind of Change? Cultural Determinants of Maternal Labor Supply," IAB-Discussion Paper 202030, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    50. Hugo Ñopo & Nancy Daza & Johanna Ramos, 2012. "Gender earning gaps around the world: a study of 64 countries," International Journal of Manpower, Emerald Group Publishing Limited, vol. 33(5), pages 464-513, August.
    51. Barbara Boelmann & Anna Raute & Uta Schönberg, 2020. "Wind of Change? Cultural Determinants of Maternal Labor Supply," RF Berlin - CReAM Discussion Paper Series 2020, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    52. Arabsheibani, Reza & Mussurov, Altay, 2006. "Returns to Schooling in Kazakhstan: OLS and Instrumental Variables Approach," IZA Discussion Papers 2462, Institute of Labor Economics (IZA).
    53. Raquel Fernández & Alessandra Fogli & Claudia Olivetti, 2004. "Mothers and Sons: Preference Formation and Female Labor Force Dynamics," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(4), pages 1249-1299.
    54. Barbara Boelmann & Anna Raute & Uta Schönberg, 2020. "Wind of Change? Cultural Determinants of Maternal Labor Supply," Working Papers 914, Queen Mary University of London, School of Economics and Finance.
    55. T.D. Stanley & Stephen B. Jarrell, 1998. "Gender Wage Discrimination Bias? A Meta-Regression Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 947-973.
    56. Barry T. Hirsch & John V. Winters, 2014. "An Anatomy Of Racial and Ethnic Trends in Male Earnings in the U.S," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 60(4), pages 930-947, December.
    57. Anne O. Krueger, 1963. "The Economics of Discrimination," Journal of Political Economy, University of Chicago Press, vol. 71, pages 481-481.
    58. Barbara R. Bergmann, 1974. "Occupational Segregation, Wages and Profits When Employers Discriminate by Race or Sex," Eastern Economic Journal, Eastern Economic Association, vol. 1(2), pages 103-110, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Joanna Tyrowicz & Lucas van der Velde, 2017. "When the opportunity knocks: large structural shocks and gender wage gaps," GRAPE Working Papers 2, GRAPE Group for Research in Applied Economics.
    2. Karolina Goraus & Joanna Tyrowicz & Lucas van der Velde, 2017. "How (Not) to make women work?," GRAPE Working Papers 1, GRAPE Group for Research in Applied Economics.
    3. Karolina Goraus & Joanna Tyrowicz, 2013. "The Goodwill Effect? Female Access to the Labor Market Over Transition: A Multicountry Analysis," Working Papers 2013-19, Faculty of Economic Sciences, University of Warsaw.
    4. Norberto Pignatti, 2012. "Gender wage gap dynamics in a changing Ukraine," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-44, December.
    5. Carolina Castagnetti & Luisa Rosti, 2012. "Unfair tournaments: gender stereotyping and wage discrimination among Italian graduates," DEM Working Papers Series 010, University of Pavia, Department of Economics and Management.
    6. Horie, Norio & Iwasaki, Ichiro & 岩﨑, 一郎, 2022. "Returns to Education in European Emerging Markets: A Meta-Analytic Review," RRC Working Paper Series 95, Russian Research Center, Institute of Economic Research, Hitotsubashi University.
    7. Tamar Khitarishvili, 2018. "Gender Pay Gaps in the Former Soviet Union: A Review of the Evidence," Economics Working Paper Archive wp_899, Levy Economics Institute.
    8. Thomas Dohmen & Hartmut Lehmann & Anzelika Zaiceva, 2008. "The Gender Earnings Gap inside a Russian Firm: First Evidence from Personnel Data - 1997 to 2002 ; Updated Version," ESCIRRU Working Papers 6, DIW Berlin, German Institute for Economic Research.
    9. Dohmen, Thomas & Lehmann, Hartmut & Zaiceva, Anzelika, 2008. "The gender earnings gap inside a Russian firm : first evidence from personnel data - 1997 to 2002," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 157-179.
    10. Ganguli, Ina & Terrell, Katherine, 2006. "Institutions, markets and men's and women's wage inequality: Evidence from Ukraine," Journal of Comparative Economics, Elsevier, vol. 34(2), pages 200-227, June.
    11. Joanna Tyrowicz & Magdalena Smyk, 2019. "Wage Inequality and Structural Change," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(2), pages 503-538, January.
    12. Christian Pfeifer & Tatjana Sohr, 2009. "Analysing the Gender Wage Gap (GWG) Using Personnel Records," LABOUR, CEIS, vol. 23(2), pages 257-282, June.
    13. Munich, Daniel & Svejnar, Jan & Terrell, Katherine, 2005. "Is women's human capital valued more by markets than by planners?," Journal of Comparative Economics, Elsevier, vol. 33(2), pages 278-299, June.
    14. Simone Moriconi & Núria Rodriguez-Planas, 2021. "Gender Norms and the Motherhood Employment Gap," CESifo Working Paper Series 9471, CESifo.
    15. Karolina Goraus & Joanna Tyrowicz & Lucas Velde, 2017. "Which Gender Wage Gap Estimates to Trust? A Comparative Analysis," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63(1), pages 118-146, March.
    16. Pfeifer, Christian & Sohr, Tatjana, 2008. "Analysing the Gender Wage Gap Using Personnel Records of a Large German Company," IZA Discussion Papers 3533, Institute of Labor Economics (IZA).
    17. Jaanika Meriküll & Maryna Tverdostup, 2020. "The Gap That Survived The Transition: The Gender Wage Gap Over Three Decades In Estonia," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 127, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    18. Thomas Dohmen & Hartmut F. Lehmann & Mark E. Schaffer, 2014. "Wage Policies of a Russian Firm and the Financial Crisis of 1998: Evidence from Personnel Data, 1997 to 2002," ILR Review, Cornell University, ILR School, vol. 67(2), pages 504-531, April.
    19. Tilman Brück & Alexander M. Danzer & Alexander Muravyev & Natalia Weißhaar, 2007. "Determinants of Poverty during Transition: Household Survey Evidence from Ukraine," ESCIRRU Working Papers 2, DIW Berlin, German Institute for Economic Research.
    20. Colella, Fabrizio, 2014. "Women's Part-Time - Full-Time Wage Differentials in Europe: an Endogenous Switching Model," MPRA Paper 55287, University Library of Munich, Germany.

    More about this item

    Keywords

    Gender wage gap; Transition; Non-parametric estimates; Worker flows;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:soinre:v:155:y:2021:i:3:d:10.1007_s11205-021-02620-y. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.