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Search Intensity and Wage Differences

  • Tairi Rõõm

    ()

    (Bank of Estonia)

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    Differences in job search behaviour have long been recognized in theoretical literature as a potential source of wage differentials. The aim of the current paper is to estimate whether there exists a systematic difference in search activity between genders and whether this can explain a part of the gender wage gap. These hypotheses are tested using micro-level data for the years 1998-2000 from the Estonian Labour Force Survey. The empirical model yields a result that unemployed men search more actively for new jobs than women. Controlling for the difference in search intensity significantly reduces the residual gender wage differential.

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    File URL: http://www.eestipank.ee/sites/eestipank.ee/files/publication/en/WorkingPapers/2004/wp_104.pdf
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    Paper provided by Bank of Estonia in its series Bank of Estonia Working Papers with number 2004-1.

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    Date of creation: 10 Oct 2004
    Date of revision: 12 Oct 2004
    Publication status: published
    Handle: RePEc:eea:boewps:wp2004-01
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    15. Milan Vodopivec & Peter F. Orazem, 2000. "Male-female differences in labor market outcomes during the early transition to market: The cases of Estonia and Slovenia," Journal of Population Economics, Springer, vol. 13(2), pages 283-303.
    16. Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 309-33, April.
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