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The gender gap in early career in Mongolia

  • Francesco Pastore

Purpose – The paper's aim is to study the determinants of gender differences in early career in Mongolia, one of the 50 poorest countries of the world. Design/methodology/approach – The analysis takes advantage of an ad hoc school to work survey (SWTS) on young people aged 15-29 years carried out in 2006. Extended and augmented Mincerian earning equations are run and then the Juhn-Murphy-Pierce (JMP) decomposition method is applied to them to disentangle the quantity effect, the price effect and the residual wage distribution. Findings – On average, female wages are not lower than those of males. However, although not statistically significant among teenagers (15-19), the conditional gender gap becomes significant and sizeable for the over-20s. The JMP decomposition shows that most of the gap is due to differences in the way the market values the same characteristics of men and women: in fact, quantity effects tend to reduce, whereas price effects tend to increase the gap. If wages were paid equally, women should have 11.7 per cent more for their higher education attainment and overall 22 per cent more, a substantial gap for the low earnings of Mongolians. Research limitations/implications – Future research should assess the impact of aspirations of young people on their labour market choices. Practical implications – The analysis shows that gender differences emerge in concomitance with women establishing a household and giving birth, suggesting that the current interventions to help mothers cope with maternity are insufficient. Changing this outcome is important to reach the Millennium Development Goals. Originality/value – Labour market issues in Mongolia are under-studied, not to mention gender differences in early career. This paper fills some of the gaps.

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Article provided by Emerald Group Publishing in its journal International Journal of Manpower.

Volume (Year): 31 (2010)
Issue (Month): 2 ( May)
Pages: 188-207

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Handle: RePEc:eme:ijmpps:v:31:y:2010:i:2:p:188-207
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References listed on IDEAS
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  1. 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, vol. 101(3), pages 410-42, June.
  2. Astrid KUNZE, 2003. "Gender Differences in Entry Wages and Early Career Wages," Annals of Economics and Statistics, GENES, issue 71-72, pages 245-265.
  3. Alan Manning & Joanna Swaffield, 2005. "The Gender Gap in Early Career Wage Growth," CEP Discussion Papers dp0700, Centre for Economic Performance, LSE.
  4. Francesco Pastore & Izabela Marcinkowska, 2004. "The Gender Wage Gap Among Young People in Italy," CELPE Discussion Papers 82, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
  5. Filippin, Antonio & Ichino, Andrea, 2003. "Gender Wage Gap in Expectations and Realizations," IZA Discussion Papers 825, Institute for the Study of Labor (IZA).
  6. repec:ilo:ilowps:379743 is not listed on IDEAS
  7. Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
  8. Kunze, Astrid, 2005. "The evolution of the gender wage gap," Labour Economics, Elsevier, vol. 12(1), pages 73-97, February.
  9. Francesco Pastore & Alina Verashchagina, 2011. "When does transition increase the gender wage gap?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(2), pages 333-369, 04.
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