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The Gender Wage Gap in Croatia – Estimating the Impact of Differing Rewards by Means of Counterfactual Distributions

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  • Danijel Nestic

    () (The Institute of Economics, Zagreb, Croatia)

Abstract

The aim of this paper is to estimate the size of, changes in, and main factors contributing to gender-based wage differentials in Croatia. It utilizes microdata from the Labor Force Surveys of 1998 and 2008 and applies both OLS and quantile regression techniques to assess the gender wage gap across the wage distribution. The average unadjusted gender wage gap is found to be relatively low and declining. This paper argues that employed women in Croatia possess higher-quality labor market characteristics than men, especially in terms of education, but receive much lower rewards for these characteristics. The Machado-Mata decomposition technique is used to estimate the gender wage gap as the sole effect of differing rewards. The results suggest that due to differing rewards the gap exceeds 20 percent on average - twice the size of the unadjusted gap - and that it increased somewhat between 1998 and 2008. The gap is found to be the highest at the lower-to-middle part of the wage distribution.

Suggested Citation

  • Danijel Nestic, 2010. "The Gender Wage Gap in Croatia – Estimating the Impact of Differing Rewards by Means of Counterfactual Distributions," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 12(1), pages 83-119, April.
  • Handle: RePEc:iez:survey:ces-v12_04-2010_nestic
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    References listed on IDEAS

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    1. Orazem, Peter F & Vodopivec, Milan, 1995. "Winners and Losers in Transition: Returns to Education, Experience, and Gender in Slovenia," World Bank Economic Review, World Bank Group, vol. 9(2), pages 201-230, May.
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    3. Pastore, Francesco & Verashchagina, Alina, 2007. "When Does Transition Increase the Gender Wage Gap? An Application to Belarus," IZA Discussion Papers 2796, Institute for the Study of Labor (IZA).
    4. Newell, Andrew & Reilly, Barry, 2001. "The gender pay gap in the transition from communism: some empirical evidence," Economic Systems, Elsevier, vol. 25(4), pages 287-304, December.
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    6. 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.
    7. Wiji Arulampalam & Alison L. Booth & Mark L. Bryan, 2007. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wage Distribution," ILR Review, Cornell University, ILR School, vol. 60(2), pages 163-186, January.
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    9. De la Rica Goiricelaya, Sara & Dolado, Juan J. & Llorens, Vanessa, 2005. "Ceilings and Floors? Gender Wage Gaps by Education in Spain," DFAEII Working Papers 2005-01, University of the Basque Country - Department of Foundations of Economic Analysis II.
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    Cited by:

    1. Jasna Kovačević & Dževad Šehić, 2015. "The Pursuit Of A Remedy For Gender Inequality In Wider Europe: Comparison Of Policies And Indices In The Eu, Nordic Countries, And South East Europe," Economic Annals, Faculty of Economics, University of Belgrade, vol. 60(204), pages 127-156, January –.

    More about this item

    Keywords

    gender wage gap; quantile regression; Machado-Mata decomposition; Croatia;

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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