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

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Author Info

  • Ganguli, Ina

    ()
    (Stockholm School of Economics)

  • Terrell, Katherine

    (University of Michigan)

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 (βs) 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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Bibliographic Info

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
Date of revision:
Handle: RePEc:iza:izadps:dp1776

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

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References

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  1. Hunt, Jennifer, 1998. "The Transition in East Germany: When is a Ten Point Fall in the Gender Wage Gap Bad News?," CEPR Discussion Papers 1805, C.E.P.R. Discussion Papers.
  2. 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.
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Citations

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Cited by:
  1. Kampon ADIREKSOMBAT & FANG Zheng & Chris SAKELLARIOU, 2010. "The Evolution of Gender Wage Differentials and Discrimination in Thailand: 1991-2007 — An Application of Unconditional Quantile Regression," Economic Growth centre Working Paper Series, Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre 1005, Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre.
  2. repec:iab:iabzaf:v:41:i:2/3:p:157-179 is not listed on IDEAS
  3. Salma Ahmed & Pushkar Maitra, 2011. "A Distributional Analysis of the Gender Wage Gap in Bangladesh," Monash Economics Working Papers 20-11, Monash University, Department of Economics.
  4. Norberto Pignatti, 2012. "Gender wage gap dynamics in a changing Ukraine," IZA Journal of Labor & Development, Springer, vol. 1(1), pages 1-44, December.
  5. Amelie Constant & Martin Kahanec & Klaus F. Zimmermann, 2006. "The Russian-Ukrainian Earnings Divide," Discussion Papers of DIW Berlin 627, DIW Berlin, German Institute for Economic Research.
  6. Alejandro Badel & Ximena Peña, 2010. "Decomposing the GenderWage Gap with Sample Selection Adjustment: Evidence from Colombia," DOCUMENTOS CEDE 007725, UNIVERSIDAD DE LOS ANDES-CEDE.
  7. Nizalova, Olena Y. & Sliusarenko, Tamara, 2013. "Motherhood Wage Penalty in Times of Transition," IZA Discussion Papers 7810, Institute for the Study of Labor (IZA).
  8. T. Dohmen & H. Lehmann & A. Zaiceva, 2008. "The Gender Earnings Gap inside a Russian Firm: First Evidence from Personnel Data ? 1997 to 2002," Working Papers 633, Dipartimento Scienze Economiche, Universita' di Bologna.
  9. 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.
  10. Tamar Khitarishvili, 2013. "Evaluating the Gender Wage Gap in Georgia, 2004 - 2011," Economics Working Paper Archive wp_768, Levy Economics Institute.
  11. Dileni Gunewardena & Darshi Abeyrathna & Amalie Ellagala & Kamani Rajakaruna & Shobana Rajendran, 2008. "Glass Ceilings, Sticky Floors or Sticky Doors? A Quantile Regression Approach to Exploring Gender Wage Gaps in Sri Lanka," Working Papers PMMA, PEP-PMMA 2008-04, PEP-PMMA.
  12. Ge, Yuhao & Li, Hongbin & Zhang, Junsen, 2011. "Gender earnings gaps in Hong Kong: Empirical evidence from across the earnings distribution in 2006," China Economic Review, Elsevier, vol. 22(1), pages 151-164, March.
  13. 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.
  14. Zheng Fang & Chris Sakellariou, 2011. "A Case of Sticky Floors: Gender Wage Differentials in Thailand," Asian Economic Journal, East Asian Economic Association, vol. 25(1), pages 35-54, 03.

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