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Male-female differences in labor market outcomes during the early transition to market : the case of Estonia and Slovenia

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  • Orazem, Peter F.
  • Vodopivec, Milan

Abstract

The authors analyze changes in women's relative wages, using social security data from Slovenia (1987-92) and a retrospective survey of Estonia's labor force (1989-94). Estonia adopted liberal labor market policies. Slovenia took an interventionist approach. Nevertheless, relative wages for women rose in both countries. Actually, real wages fell for both men and women, but women lost less than men did. Certain factorfavored women: 1) Returns to human capital rose during the transition. 2) Relative labor demand shifted toward predominantly female sectors (health, education, financial services, retail trade) and away from traditionally male sectors (agriculture, manufacturing, mining, transportation). 3) Women with low wages had a disproportionate incentive to exit the labor market, especially in Estonia. Women were less mobile across jobs in both countries, however, so men disproportionately filled new jobs in expanding sectors. Women who remained employed had higher average education levels. Women's relative immobility will tend to reduce their early relative gains. Their relative wages will also continue to fall if their share of the expanding sectors continue to fall.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 2087.

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Date of creation: 31 Mar 1999
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Handle: RePEc:wbk:wbrwps:2087

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Keywords: Labor Policies; Health Monitoring&Evaluation; Banks&Banking Reform; Public Health Promotion; Environmental Economics&Policies; Banks&Banking Reform; Municipal Financial Management; Labor Standards; Health Monitoring&Evaluation; Environmental Economics&Policies;

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  1. Haltiwanger, John C. & Vodopivec, Milan, 2002. "Gross worker and job flows in a transition economy: an analysis of Estonia," Labour Economics, Elsevier, Elsevier, vol. 9(5), pages 601-630, November.
  2. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September.
  3. Orazem, Peter F. & Vodopivec, Milan, 1994. "Winners and losers in transition : returns to education, experience, and gender in Slovenia," Policy Research Working Paper Series 1342, The World Bank.
  4. Blau, Francine D & Kahn, Lawrence M, 1992. "The Gender Earnings Gap: Learning from International Comparisons," American Economic Review, American Economic Association, American Economic Association, vol. 82(2), pages 533-38, May.
  5. 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, University of Chicago Press, vol. 101(3), pages 410-42, June.
  6. Stefan Bojnec & Jozef Konings, 1998. "Job Creation, Job Destruction and Labour Demand in Slovenia," LICOS Discussion Papers, LICOS - Centre for Institutions and Economic Performance, KU Leuven 7498, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
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