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Wage Ceilings and Floors: The Gender Gap in Ukraine’s Transition

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Author Info
Ina Ganguli (Harvard University)
Katherine Terrell () (University of Michigan, Ann Arbor and IZA Bonn)

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Abstract

This paper uses new micro data from the Ukrainian Longitudinal Monitoring Survey (ULMS) to examine the gender gaps across the distribution of wages in Ukraine during communism (1986), the start of transition (1991), and after Ukraine started to be considered a market economy (2003). We find that the gender pay gap is higher in the top half of the distribution than at the bottom half and that this ‘glass ceiling’ is persistent across the three points in time, while the wage floor rose for women in 2003. Closer inspection of two sectors - the private and the public - reveals the striking finding that the glass ceiling is lower in the public than in the private sector but the floor is the same. We use the Machado and Mata (2004) method to create counterfactuals that advance our knowledge of which factors are driving these differences; we find that the differences in men’s and women’s rewards (ßs) rather than differences in their productive characteristics (Xs) explain most of the wage gap throughout the distribution. The different ceilings in the public and private sectors are largely due to differences in men’s and women’s productive characteristics, which favor men in the public and women in the private sector. The fall in the gender gap in the lower part of the distribution from 1986 to 2003 is explained partially by the improvement in women’s productive characteristics and partially by the worsening in men’s rewards in the bottom half of the distribution over time. However, probably the most important reason for the reduction in the gap at the bottom of the distribution over time is that the value of the minimum wage was set relatively high in 2003 and it raised the wage floor for more women than men.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1776.

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Length: 45 pages
Date of creation: Sep 2005
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Handle: RePEc:iza:izadps:dp1776

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Related research
Keywords: gender gap; quantile regression; glass ceilings; glass floors; transition; Ukraine;

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Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
I2 - Health, Education, and Welfare - - Education
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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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.:
  1. Constantin G. Ogloblin, 1999. "The Gender earnings differential in the Russian transition economy," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 52(4), pages 602-627, July.
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    Other versions:
  3. de la Rica, Sara & Dolado, Juan J. & Llorens, Vanesa, 2005. "Ceiling and Floors: Gender Wage Gaps by Education in Spain," IZA Discussion Papers 1483, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Tansel, Aysit, 2004. "Public-Private Employment Choice, Wage Differentials and Gender in Turkey," IZA Discussion Papers 1262, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "The Effects of Competition and Equal Treatment Laws on the Gender Wage Differential," CEPR Discussion Papers 4015, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  6. 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. [Downloadable!]
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  7. Arulampalam, W. & Robin A. Naylor & Jeremy P. Smith, 2002. "University of Warwick," Royal Economic Society Annual Conference 2002 9, Royal Economic Society.
  8. Newell, Andrew & Reilly, Barry, 2001. "The gender pay gap in the transition from communism: some empirical evidence," Economic Systems, Elsevier, vol. 25(4), pages 287-304, December. [Downloadable!] (restricted)
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  9. Wiji Arulampalam & Alison Booth & Mark L. Bryan, 2006. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wages Distribution," CEPR Discussion Papers 510, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
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  10. 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. [Downloadable!]
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  11. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January. [Downloadable!] (restricted)
  12. Gorodnichenko, Yuriy & Peter, Klara Sabirianova, 2004. "Returns to Schooling in Russia and Ukraine: A Semiparametric Approach to Cross-Country Comparative Analysis," IZA Discussion Papers 1325, Institute for the Study of Labor (IZA). [Downloadable!]
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  13. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October. [Downloadable!] (restricted)
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  14. Orazem, Peter F & Vodopivec, Milan, 1995. "Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia," World Bank Economic Review, Oxford University Press, vol. 9(2), pages 201-30, May.
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  15. Newell, Andrew & Reilly, Barry, 1996. "The gender wage gap in Russia: Some empirical evidence," Labour Economics, Elsevier, vol. 3(3), pages 337-356, October. [Downloadable!] (restricted)
  16. 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. [Downloadable!] (restricted)
  17. Katrin Elborgh-Woytek & Mark Lewis, 2002. "Privatization in Ukraine: Challenges of Assessment and Coverage in Fund Conditionality," IMF Policy Discussion Papers 02/7, International Monetary Fund.
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  19. 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. [Downloadable!] (restricted)
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  20. 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. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, 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.)

  1. Constant, Amelie & Kahanec, Martin & Zimmermann, Klaus F, 2006. "The Russian-Ukrainian Earnings Divide," CEPR Discussion Papers 5904, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  2. Dohmen, Thomas & Lehmann, Hartmut & Zaiceva, Anzelika, 2008. "The Gender Earnings Gap inside a Russian Firm: First Evidence from Personnel Data – 1997 to 2002," IZA Discussion Papers 3428, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  3. 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. [Downloadable!]
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