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The Gender Wage Gap and Discrimination, East Germany 1990-1997

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  • Ira N. Gang
  • Myeong-Su Yun

Abstract

East Germany has undergone rapid transition from a socialist to a market economy since the fall of the Berlin Wall. We are interested in whether women are better off or worse off relative to men as a result of this transition. We use the German Socio-Economic Panel Data 1990-1997 to study wage determination and we implement a decomposition analysis that accounts for selection bias issues. Our analysis shows that even though the gender wage gap is shrinking, gender discrimination is not.

Suggested Citation

  • Ira N. Gang & Myeong-Su Yun, 2001. "The Gender Wage Gap and Discrimination, East Germany 1990-1997," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 123-127.
    • Handle: RePEc:diw:diwvjh:70-10-18
    DOI: 10.3790/vjh.70.1.123
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    1. Alan B. Krueger & Jorn-Steffen Pischke, 1995. "A Comparative Analysis of East and West German Labor Markets: Before and After Unification," NBER Chapters, in: Differences and Changes in Wage Structures, pages 405-446, National Bureau of Economic Research, Inc.
    2. Myeong-Su Yun, 2000. "Selection Bias and the Decomposition of Wage Differentials," Departmental Working Papers 199911, Rutgers University, Department of Economics.
    3. Mroz, Thomas A, 1987. "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," Econometrica, Econometric Society, vol. 55(4), pages 765-799, July.
    4. Zabel, Jeffrey E, 1993. "The Relationship between Hours of Work and Labor Force Participation in Four Models of Labor Supply Behavior," Journal of Labor Economics, University of Chicago Press, vol. 11(2), pages 387-416, April.
    5. Thomas Lange & Geoffrey Pugh, 1998. "The Economics of German Unification," Books, Edward Elgar Publishing, number 794.
    6. Neuman, Shoshana & Oaxaca, Ronald L, 1998. "Estimating Labour Market Discrimination with Selectivity Corrected Wage Equations: Methodological Considerations and an Illustration from Israel," CEPR Discussion Papers 1915, C.E.P.R. Discussion Papers.
    7. Freeman, Richard B. & Katz, Lawrence F. (ed.), 1995. "Differences and Changes in Wage Structures," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226261607, December.
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    More about this item

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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