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Competition and the Gender Wage Gap: New Evidence from Linked Employer-Employee Data in Hungary 1986-2003 Author info | Abstract | Publisher info | Download info | Related research | Statistics Anna Lovasz () (Labor Project, Central European University)
The overall gender wage gap fell from .31 to .15 between 1986 and 2003 following the transition to a free market in Hungary. During the same time period, firms faced increased competition from both new domestic and foreign firms due to the rapid liberalization measures implemented by the government. Becker's (1957) model of employer taste discrimination implies that employers that discriminate against women may be forced out of the market by competition in the long run, leading to a fall in the gender wage gap. I test this implication using data from the Hungarian Wage and Earnings Survey covering 1986-2003. I estimate the effect of variation in various measures of product market competition, including trade variables, on the within-firm endowment-adjusted gender wage gap, making use of the fact that I am able to follow firms over time. The estimates show a significant negative relationship between product market competition and the within-firm gender wage gap.
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Paper provided by Institute of Economics, Hungarian Academy of Sciences in its series Budapest Working Papers on the Labour Market with number
0804.
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Length: 31 pages
Date of creation: Jun 2008Date of revision:
Handle: RePEc:has:bworkp:0804Contact details of provider: Postal: 1112 Budapest, Budaorsi ut 45. Phone: (36-1) 319-3119 Fax: (36-1) 319-3136 Web page: http://econ.core.hu More information through EDIRC
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Keywords: Transitional labor market ; wage differentials ; gender discrimination ; Other versions of this item:
Find related papers by JEL classification: 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 P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
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