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Does Market Liberalization Reduce Gender Discrimination? Econometric Evidence from Hungary, 1986-98

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  • Campos, Nauro
  • Jolliffe, Dean

Abstract

An alleged achievement of socialism was gender equality in the labour market. Has its collapse shattered this accomplishment? The theoretical literature and attendant empirical evidence are inconclusive. Using data for 2.9 million wage earners in Hungary we find that the male/female difference in log wages declined from 0.31 to 0.19 between 1986 and 1998 and that this is largely explained by a matching decline in ‘Oaxaca's discrimination,’ suggesting extraordinary improvement of women’s relative situation. Further, we find that variation over time in the wage gaps is associated with public and large firms having progressively smaller gaps than their counterparts.

Suggested Citation

  • Campos, Nauro & Jolliffe, Dean, 2004. "Does Market Liberalization Reduce Gender Discrimination? Econometric Evidence from Hungary, 1986-98," CEPR Discussion Papers 4350, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:4350
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    JEL classification:

    • I20 - Health, Education, and Welfare - - Education - - - General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General

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