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Explaining Gender Differences in Unemployment with Micro Data on Flows in Post-Communist Economies

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  • Jana Stefanová Lauerová
  • Katherine Terrell

    ()

Abstract

Post-communist labor markets provide an interesting laboratory since unemployment rates grew from zero to double digits and gender differences began to vary greatly across these countries. We provide the first systematic analysis of the determinants of the gender unemployment gap in the Czech Republic using a method that decomposes unemployment rates into transition probabilities (flows) between labor market states, which we calculate using Labor Force Survey data. We extend the analysis to other post-communist economies by evaluating the flows available from existing studies with the decomposition framework. We further examine the flows in the Czech Republic by estimating gender-specific multinomial logit models to learn which factors (demographic, regional, cyclical) other than gender and marital status affect unemployment. We find that women’s lower probability of exiting unemployment for a job explains the lion’s share of the gender gap in the unemployment rates in the Czech Republic and the other post-communist countries for which studies exist. This is also the principal factor explaining married women’s higher unemployment rates compared to married men in the Czech Republic. On the other hand, single men and women’s rates are higher than married men and women’s because they are twice as likely to lose/leave a job for unemployment. We find that age and education are systematically important in explaining flows of both men and women in all these economies, as it is in the more developed industrial economies. The less educated are more likely to be laid off or quit and less likely to find a job. Whereas younger individuals are more likely to be laid off or quit, they are also more likely to find a job.

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Bibliographic Info

Paper provided by William Davidson Institute at the University of Michigan in its series William Davidson Institute Working Papers Series with number 506.

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Length: 36 pages
Date of creation: 01 Sep 2002
Date of revision:
Handle: RePEc:wdi:papers:2002-506

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Keywords: Unemployment; Gender; Transition Probabilities; Flow Analysis; Post-communist economies; Czech Republic;

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References

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  1. Jurajda, Štepán & Terrell, Katherine, 2002. "What Drives the Speed of Job Reallocation During Episodes of Massive Adjustment?," IZA Discussion Papers 601, Institute for the Study of Labor (IZA).
  2. Faggio, Giulia & Konings, Jozef, 2003. "Job creation, job destruction and employment growth in transition countries in the 90s," Economic Systems, Elsevier, Elsevier, vol. 27(2), pages 129-154, June.
  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. Bellmann Lutz & Estrin Saul & Lehmann Hartmut & Wadsworth Jonathan, 1995. "The Eastern German Labor Market in Transition: Gross Flow Estimates from Panel Data," Journal of Comparative Economics, Elsevier, vol. 20(2), pages 139-170, April.
  5. Bilsen, Valentijn & Konings, Jozef, 1998. "Job Creation, Job Destruction, and Growth of Newly Established, Privatized, and State-Owned Enterprises in Transition Economies: Survey Evidence from Bulgaria, Hungary, and Romania," Journal of Comparative Economics, Elsevier, vol. 26(3), pages 429-445, September.
  6. Robert S. Chase, 1998. "Markets for communist human capital: Returns to education and experience in the Czech republic and Slovakia," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(3), pages 401-423, April.
  7. Elizabeth Brainerd, 2000. "Women in transition: Changes in gender wage differentials in Eastern Europe and the former Soviet Union," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(1), pages 138-162, October.
  8. Royalty, Anne Beeson, 1998. "Job-to-Job and Job-to-Nonemployment Turnover by Gender and Education Level," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 16(2), pages 392-443, April.
  9. Foley, M.C., 1997. "Labor Market Dynamics in Russia," Papers, Yale - Economic Growth Center 780, Yale - Economic Growth Center.
  10. Stephen T. Marston, 1976. "Employment Instability and High Unemployment Rates," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 7(1), pages 169-210.
  11. Larry DeBoer & Michael C. Seeborg, 1989. "The unemployment rates of men and women: A transition probability analysis," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 42(3), pages 404-414, April.
  12. Mark C. Foley, 1997. "Labor Market Dynamics in Russia," Working Papers, Economic Growth Center, Yale University 780, Economic Growth Center, Yale University.
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Cited by:
  1. Ira N. Gang & John Landon-Lane & Ralitza Dimova, 2006. "Where to Work? The Role of the Household in explaining Gender Differences in Labour Market Outcomes," Departmental Working Papers, Rutgers University, Department of Economics 200623, Rutgers University, Department of Economics.
  2. Tiongson, Erwin R. & Yemtsov, Ruslan, 2008. "Bosnia and Herzegovina 2001-2004 : enterprise restructuring, labor market transitions and poverty," Policy Research Working Paper Series 4479, The World Bank.
  3. Fares, Jean & Tiongson, Erwin R., 2007. "Youth unemployment, labor market transitions, and scarring : evidence from Bosnia and Herzegovina, 2001-04," Policy Research Working Paper Series 4183, The World Bank.
  4. Ana Carolina Ortega Masagué, 2006. "El diferencial entre las tasas de desempleo de hombres y mujeres en Argentina," Working Papers 2006-08, FEDEA.
  5. Niels-Hugo Blunch & Victor Sulla, 2014. "World gone wrong: the financial crisis, labor market transitions and earnings in Serbia," Economic Change and Restructuring, Springer, Springer, vol. 47(3), pages 187-226, August.

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