The Determinants of Female Labour Supply in Belarus
AbstractUnlike in many other transition countries, where the gender pay gap has remained stable while female employment rates have reduced, in the case of Belarus women’ activity rate has been practically unchanged despite an increase in the gender pay gap. This paper investigates why this is the case by looking at the determinants of female labour force participation in 1996 and 2001 (data from the Belarusian Household Survey). The selectivity corrected wage equation is estimated to compute an expected wage offer for women. The latter is included, in the second step, as a regressor in the structural female labour supply equation, estimated by probit. Several measures for the care of children and elderly people, proxies for the opportunity cost of working, affect female participation, but do not generate sample selection mechanisms. The estimated elasticity of female participation to wages is low, at about 0.45 in 1996 and 0.41 in 2001. Moreover the data allows detecting poverty trap mechanisms, whereas women in low-income households have much lower than average participation rates. At the same time the elasticity of female labour supply with respect to the own wage appears to be much higher for the low-paid groups of women.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3457.
Length: 26 pages
Date of creation: Apr 2008
Date of revision:
Publication status: published in: Ravi Kanbur and Jan Svejnar (eds.), Labour Markets and Economic Development, London: Routledge, 2009
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Find related papers by JEL classification:
- J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
- J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
- P20 - Economic Systems - - Socialist Systems and Transition Economies - - - General
- P52 - Economic Systems - - Comparative Economic Systems - - - Comparative Studies of Particular Economies
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