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When Does Transition Increase the Gender Wage Gap? An Application to Belarus

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Author Info

  • Pastore, Francesco

    ()
    (University of Naples II)

  • Verashchagina, Alina

    ()
    (University of Siena)

Abstract

This paper suggests an analytical framework to analyse the joint evolution of female participation and wages across countries in Central and Eastern Europe (CEE) and the Former Soviet Union (FSU), of which Belarus is a particular case. In CEE, female participation has reduced relatively more than wages, due to greater wage rigidity; in the FSU, wages have reduced more than participation, due to labour hoarding practices. In Belarus, only wages adjust, since (mainly state owned) firms tend to largely maintain their entire workforce. Underneath slow transition and remarkably stable female participation rates (at over 80%), the unconditional gender gap in log hourly wages has increased by a half, while that in log of net and total monthly wages has more than doubled over almost a decade (1996-2004). The Juhn, Murphy and Pierce (1991) decomposition suggests that the deterioration of women wages is caused by negative changes in observed characteristics (due to horizontal segregation) and in the remuneration for those characteristics. Instead, very bland changes in the residual wage distribution tended to reduce (not to increase) the gender wage gap: in fact, women have benefited both of changes in the degree of wage inequality and of gains in the mean female rank in the male residual distribution.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 2796.

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Length: 47 pages
Date of creation: May 2007
Date of revision:
Publication status: published in: Economics of Transition, 2011, 19 (2), 333-369
Handle: RePEc:iza:izadps:dp2796

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Keywords: economic transition; evolution of the gender wage gap; decomposition analysis; wage inequality; Belarus;

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References

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  1. Orazem, Peter F. & Vodopivec, Milan, 1999. "Male-female differences in labor market outcomes during the early transition to market : the case of Estonia and Slovenia," Policy Research Working Paper Series 2087, The World Bank.
  2. 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.
  3. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  4. Jana Stefanov� Lauerov� & Katherine Terrell, 2007. "What Drives Gender Differences in Unemployment?," Comparative Economic Studies, Palgrave Macmillan, vol. 49(1), pages 128-155, March.
  5. Constantin G. Ogloblin, 1999. "The Gender earnings differential in the Russian transition economy," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(4), pages 602-627, July.
  6. Stěpán Jurajda, 2005. "Gender Segregation and Wage Gap: An East-West Comparison," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 598-607, 04/05.
  7. 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.
  8. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
  9. Juan J. Dolado & Vanesa Llorens, 2004. "Gender Wage Gaps By Education In Spain: Glass Floors Vs. Glass Ceilings," Working Papers wp2004_03, CEMFI.
  10. Francesco Pastore & Alina Verashchagina, 2005. "The Gender Wage Gap in Belarus," Transition Studies Review, Springer, vol. 12(3), pages 497-511, December.
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Cited by:
  1. Pastore, Francesco, 2008. "School-to-work-transitions in Mongolia," ILO Working Papers 423895, International Labour Organization.
  2. Danijel Nestic, 2010. "The Gender Wage Gap in Croatia – Estimating the Impact of Differing Rewards by Means of Counterfactual Distributions," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 12(1), pages 83-119, April.
  3. Pastore, Francesco & Verashchagina, Alina, 2008. "The Determinants of Female Labour Supply in Belarus," IZA Discussion Papers 3457, Institute for the Study of Labor (IZA).
  4. Maksim Yemelyanau & Aliaksandr Amialchuk & Mir Ali, 2012. "Evidence from the Chernobyl Nuclear Accident: The Effect on Health, Education, and Labor Market Outcomes in Belarus," Journal of Labor Research, Springer, vol. 33(1), pages 1-20, March.
  5. Pastore, Francesco & Tenaglia, Simona, 2013. "Ora et non Labora? A Test of the Impact of Religion on Female Labor Supply," IZA Discussion Papers 7356, Institute for the Study of Labor (IZA).
  6. Elizabeth Brainerd, 2010. "Human Development in Eastern Europe and the CIS Since 1990," Human Development Research Papers (2009 to present) HDRP-2010-16, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).

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