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On labour market discrimination against Roma in South East Europe

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  • Susanne Milcher
  • Manfred M. Fischer

Abstract

This paper lies in the tradition of decomposition analysis of wage differentials based on the model set forth in Blinder (1973) and Oaxaca (1973), and aims to measure labour market discrimination against Roma in South East European countries (Albania, Bulgaria, Croatia, Serbia and Kosovo). We use microdata from 2004 UNDP household survey and a Bayesian approach, proposed by Keith and LeSage (2003), for the decomposition analysis of wage differentials. Statistical inference for both discrimination and characteristics effects estimates are based on Markov Chain Monte Carlo (MCMC) estimation. Variance estimates derived from this method of estimation are known to reflect the true posterior variance when a sufficiently large sample of MCMC draws is carried out. The results provide clear evidence for labour market discrimination against Roma in Albania and Kosovo, but not so in Bulgaria, Croatia, and Serbia. Nevertheless, there are significant differences in how individual characteristics are valued between Roma and non-Roma.
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Suggested Citation

  • Susanne Milcher & Manfred M. Fischer, 2011. "On labour market discrimination against Roma in South East Europe," Papers in Regional Science, Wiley Blackwell, vol. 90(4), pages 773-788, November.
    • Handle: RePEc:bla:presci:v:90:y:2011:i:4:p:773-788
    DOI: j.1435-5957.2011.00354.x
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    References listed on IDEAS

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    1. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-579, November.
    2. Geweke, J, 1993. "Bayesian Treatment of the Independent Student- t Linear Model," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(S), pages 19-40, Suppl. De.
    3. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    4. 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.
    5. Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
    6. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
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    Cited by:

    1. Sinem Bağçe, 2022. "The Roma in Turkiye: Segregation in The Labour Market and Income Differentiations," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 66(66), pages 113-132, December.
    2. Tudorel ANDREI & Andreea MIRICĂ & Daniel TEODORESCU & Elena-Doina DASCĂLU, 2016. "Main Determinants of Labor Force Participation in the case of Metropolitan Roma People," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(3), pages 144-163, September.
    3. O'Higgins, Niall & Brüggemann, Christian, 2013. "The Consequences of Cumulative Discrimination: How Special Schooling Influences Employment and Wages of Roma in the Czech Republic," IZA Discussion Papers 7668, Institute of Labor Economics (IZA).
    4. Aisa, Rosa & Larramona, Gemma, 2014. "Labour market outcomes in the Roma population of Spain," MPRA Paper 59866, University Library of Munich, Germany.
    5. O'Higgins, Niall, 2013. "Ethnicity and Gender in the Labour Market in Central and South East Europe," IZA Discussion Papers 7667, Institute of Labor Economics (IZA).

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