Evaluating the Gender Wage Gap in Georgia, 2004 - 2011
AbstractThis paper evaluates the gender wage gap among wage workers along the wage distribution in Georgia between 2004 and 2011, based on the recentered influence function (RIF) decomposition approach developed in Firpo, Fortin, and Lemieux (2009). We find that the gender wage gap decreases along the wage distribution, from 0.64 log points to 0.54 log points. Endowment differences explain between 22 percent and 61 percent of the observed gender wage gap, with the explained proportion declining as we move to the top of the distribution. The primary contributors are the differences in the work hours, industrial composition, and employment in the state sector. A substantial portion of the gap, however, remains unexplained, and can be attributed to the differences in returns, especially in the industrial premia. The gender wage gap consistently declined between 2004 and 2011. However, the gap remains large, with women earning 45 percent less than men in 2011. The reduction in the gender wage gap between 2004 and 2007, and the switch from a glass-ceiling shape for the gender gap distribution to a sticky-floor shape, was driven by the rising returns in the state sector for men at the bottom, and by women at the top of the wage distribution. Between 2009 and 2011, the decline in the gender wage gap can be explained by the decrease in men's working hours, which was larger than the decrease in women's working hours. We assess the robustness of our findings using the statistical matching decomposition method developed in Nopo (2008) in order to address the possibility that the high degree of industrial segregation may bias our results. The Nopo decomposition results enrich our understanding of the factors that underlie the gender wage gap but do not alter our key findings, and in fact support their robustness.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Levy Economics Institute, The in its series Economics Working Paper Archive with number wp_768.
Date of creation: Jul 2013
Date of revision:
Contact details of provider:
Web page: http://www.levyinstitute.org
Gender Wage Gap; Decomposition Methods; Wage Distribution; Transition Economies; Georgia; Glass Ceiling Effect; Sticky Floor Effect;
Find related papers by JEL classification:
- J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- P2 - Economic Systems - - Socialist Systems and Transition Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-15 (All new papers)
- NEP-DEM-2013-07-15 (Demographic Economics)
- NEP-LAB-2013-07-15 (Labour Economics)
- NEP-LMA-2013-07-15 (Labor Markets - Supply, Demand, & Wages)
- NEP-TRA-2013-07-15 (Transition Economics)
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.:
- Pham, Hung T & Reilly, Barry, 2007.
"The Gender Pay Gap In Vietnam, 1993-2002: A Quantile Regression Approach,"
6475, University Library of Munich, Germany.
- Pham, Thai-Hung & Reilly, Barry, 2007. "The gender pay gap in Vietnam, 1993-2002: A quantile regression approach," Journal of Asian Economics, Elsevier, vol. 18(5), pages 775-808, October.
- Barry Reilly & T. Hung Pham, 2006. "The Gender Pay Gap In Vietnam, 1993-2002: A Quantile Regression Approach," PRUS Working Papers 34, Poverty Research Unit at Sussex, University of Sussex.
- Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
- Ben Jann, 2008. "The Blinder–Oaxaca decomposition for linear regression models," Stata Journal, StataCorp LP, vol. 8(4), pages 453-479, December.
- Francesco Pastore & Alina Verashchagina, 2011. "When does transition increase the gender wage gap?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(2), pages 333-369, 04.
- Christopher J. Gerry & Byung-Yeon Kim & Carmen A. Li, 2001.
"The Gender Wage Gap and Wage Arrears in Russia: Evidence from the RLMS,"
Economics Discussion Papers
533, University of Essex, Department of Economics.
- Christopher J. Gerry & Byung-Yeon Kim & Carmen A Li, 2004. "The gender wage gap and wage arrears in Russia: Evidence from the RLMS," Journal of Population Economics, Springer, vol. 17(2), pages 267-288, 06.
- Christopher Gerry & Byung-Yeon Kim & Carmen A Li, 2002. "The Gender Wage Gap and Wage Arrears in Russia: Evidence from the RLMS," Working Papers 24 Key Words: RLMS, gende, CENTRE FOR THE STUDY OF ECONOMIC AND SOCIAL CHANGE IN EUROPE,School of Slavonic and East European Studies,University College London (SSEES,UCL).
- Edvard Johansson, 2005. "An estimate of self-employment income underreporting in Finland," Nordic Journal of Political Economy, Nordic Journal of Political Economy, vol. 31, pages 99-109.
- Hugo Ñopo, 2008.
"Matching as a Tool to Decompose Wage Gaps,"
The Review of Economics and Statistics,
MIT Press, vol. 90(2), pages 290-299, May.
- 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.
- Ganguli, Ina & Terrell, Katherine, 2005. "Wage Ceilings and Floors: The Gender Gap in Ukraine's Transition," IZA Discussion Papers 1776, Institute for the Study of Labor (IZA).
- Lisa Giddings, 2002. "Changes in gender earnings differentials in Bulgaria's transition to a mixed-market economy," Eastern Economic Journal, Eastern Economic Association, vol. 28(4), pages 481-497, Fall.
- Elena Glinskaya & Thomas A. Mroz, 2000. "The gender gap in wages in Russia from 1992 to 1995," Journal of Population Economics, Springer, vol. 13(2), pages 353-386.
- Yemtsov, Ruslan, 2001. "Labor Markets, Inequality and Poverty in Georgia," IZA Discussion Papers 251, Institute for the Study of Labor (IZA).
- Chi, Wei & Li, Bo, 2008. "Glass ceiling or sticky floor? Examining the gender earnings differential across the earnings distribution in urban China, 1987-2004," Journal of Comparative Economics, Elsevier, vol. 36(2), pages 243-263, June.
- Garcia-Mainar, Inmaculada & Montuenga-Gomez, Victor M., 2005. "Education returns of wage earners and self-employed workers: Portugal vs. Spain," Economics of Education Review, Elsevier, vol. 24(2), pages 161-170, April.
- José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
- Milica Kecmanovic & Garry F Barrett, 2011. "The Gender Wage Gap during Serbia's Transition," Comparative Economic Studies, Palgrave Macmillan, vol. 53(4), pages 695-720, December.
- Tamar Khitarishvili, 2009. "Explaining the Gender Wage Gap in Georgia," Economics Working Paper Archive wp_577, Levy Economics Institute, The.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie-Celeste Edwards).
If references are entirely missing, you can add them using this form.