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Ethnic Wage Gap And Political Break-Ups: Estonia During Political And Economic Transition Author info | Abstract | Publisher info | Download info | Related research | Statistics Kristjan-Olari Leping
Ott Toomet
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We analyse the ethnic wage gap in Estonia, a former Soviet republic and current EU member, which hosts a substantial Russianspeaking minority. The analysis covers a lengthy period from the final years of the Soviet Union until the first years of EU membership. We document the rise of a substantial wage gap among males in favour of the Estonian-speaking population. This result is robust with respect to controls for language skills, education, industry and occupation. The main factors causing the unexplained wage gap include different ethnicity-specific returns to education and working in the capital city. The gap for young and established workers is of equal size.We argue that the most plausible explanations are establishmentlevel segregation, possibly related to sorting and screening discrimination. Unobserved human capital, related to the segregated school system, may also play a certain role.
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Paper provided by Faculty of Economics and Business Administration, University of Tartu (Estonia) in its series University of Tartu - Faculty of Economics and Business Administration Working Paper Series with number
53.
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Length: 56 pages
Date of creation: 2007Date of revision:
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Keywords: wage decomposition ; ethnicity ; Estonia ; former Soviet Union ; Other versions of this item:
Find related papers by JEL classification: J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health, Education, Welfare, and Poverty
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Kahanec, Martin & Zaiceva, Anzelika, 2008.
"Labor Market Outcomes of Immigrants and Non-Citizens in the EU: An East-West Comparison ,"
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"Estimates of employment and welfare effects of personal labour income taxation in a flat-tax country : The case of Estonia ,"
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2008-03, Bank of Estonia, revised 30 Oct 2008.
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