IDEAS home Printed from https://ideas.repec.org/p/hhs/gunwpe/0261.html
   My bibliography  Save this paper

Occupational gender composition and wages in Romania: from planned equality to market inequality?

Author

Listed:
  • Andrén, Daniela

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Andrén, Thomas

    () (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

In Romania, the communist regime promoted an official policy of gender equality for more than 40 years, providing equal access to education and employment, and restricting pay differentiation based on gender. After its fall in December 1989, the promotion of equal opportunities and treatment for women and men did not constitute a priority for any of the governments of the 1990s. Given that both the economic mechanisms and the institutional settings changed radically, the question is if this affected gender equality. This paper analyzes both gender and occupational wage gaps in Romania before and during the first years of transition from a planned to a market economy. The results suggest that the communist institutions did succeed in eliminating the gender wage differences in female- and male-dominated occupations, but not in gender-integrated occupations, for which the gender wage gap was about 31.6%. During the transitions years, this gap decreased to 20-24%, while the gender wag gap in maleand female-dominated occupations increased to 10-14.5%.

Suggested Citation

  • Andrén, Daniela & Andrén, Thomas, 2007. "Occupational gender composition and wages in Romania: from planned equality to market inequality?," Working Papers in Economics 261, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0261
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/2077/4734
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Jurajda, Stepan & Harmgart, Heike, 2007. "When do female occupations pay more?," Journal of Comparative Economics, Elsevier, pages 170-187.
    2. Jiri Vecerník, 1995. "Changing earnings distribution in the Czech republic: survey evidence from 1988-1994," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 3(3), pages 355-371, September.
    3. George J. Borjas, 1992. "Ethnic Capital and Intergenerational Mobility," The Quarterly Journal of Economics, Oxford University Press, vol. 107(1), pages 123-150.
    4. Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 2003. "New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee-Employer Data," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 887-922, October.
    5. Vera A. Adamchik & Arjun S. Bedi, 2003. "Gender pay differentials during the transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 697-726, December.
    6. 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.
    7. 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.
    8. Constantin G. Ogloblin, 1999. "The Gender Earnings Differential in the Russian Transition Economy," ILR Review, Cornell University, ILR School, pages 602-627.
    9. Elizabeth Brainerd, 2000. "Women in Transition: Changes in Gender Wage Differentials in Eastern Europe and the Former Soviet Union," ILR Review, Cornell University, ILR School, pages 138-162.
    10. Stěpán Jurajda, 2005. "Gender Segregation and Wage Gap: An East-West Comparison," Journal of the European Economic Association, MIT Press, vol. 3(2-3), pages 598-607, 04/05.
    11. Francine D. Blau & Lawrence M. Kahn, 2003. "Understanding International Differences in the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 106-144, January.
    12. Jennifer Hunt, 2002. "The Transition in East Germany: When Is a Ten-Point Fall in the Gender Wage Gap Bad News?," Journal of Labor Economics, University of Chicago Press, vol. 20(1), pages 148-169, January.
    13. Randall S. Brown & Marilyn Moon & Barbara S. Zoloth, 1980. "Incorporating Occupational Attainment in Studies of Male-Female Earnings Differentials," Journal of Human Resources, University of Wisconsin Press, pages 3-28.
    14. Newell, Andrew & Reilly, Barry, 2001. "The gender pay gap in the transition from communism: some empirical evidence," Economic Systems, Elsevier, pages 287-304.
    15. Juan J. Dolado & Florentino Felgueroso & Juan F. Jimeno., "undated". "Recent Trends in Occupational Segregation by Gender: A Look Across the Atlantic," Working Papers 2002-11, FEDEA.
    16. Macpherson, David A & Hirsch, Barry T, 1995. "Wages and Gender Composition: Why Do Women's Jobs Pay Less?," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 426-471, July.
    17. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    18. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1.
    19. Newell, Andrew & Reilly, Barry, 1996. "The gender wage gap in Russia: Some empirical evidence," Labour Economics, Elsevier, vol. 3(3), pages 337-356, October.
    20. Jurajda, Stepan & Harmgart, Heike, 2007. "When do female occupations pay more?," Journal of Comparative Economics, Elsevier, pages 170-187.
    21. Brainerd, Elizabeth, 1998. "Winners and Losers in Russia's Economic Transition," American Economic Review, American Economic Association, pages 1094-1116.
    22. Mark R. Killingsworth, 1990. "The Economics of Comparable Worth," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ecw.
    23. Gunderson, Morley, 1989. "Male-Female Wage Differentials and Policy Responses," Journal of Economic Literature, American Economic Association, pages 46-72.
    24. Becker, Gary S, 1985. "Human Capital, Effort, and the Sexual Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 33-58, January.
    25. Miller, Paul W, 1987. "The Wage Effect of the Occupational Segregation of Women in Britain," Economic Journal, Royal Economic Society, vol. 97(388), pages 885-896, December.
    26. Meng, Xin & Miller, Paul, 1995. "Occupational Segregation and Its Impact on Gender Wage Discrimination in China's Rural Industrial Sector," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 136-155, January.
    27. Andren, Daniela & Earle, John S. & Sapatoru, Dana, 2005. "The wage effects of schooling under socialism and in transition: Evidence from Romania, 1950-2000," Journal of Comparative Economics, Elsevier, pages 300-323.
    28. Tito Boeri & Katherine Terrell, 2002. "Institutional Determinants of Labor Reallocation in Transition," Journal of Economic Perspectives, American Economic Association, pages 51-76.
    29. Michael Baker & Nicole M. Fortin, 2001. "Occupational gender composition and wages in Canada, 1987-1988," Canadian Journal of Economics, Canadian Economics Association, vol. 34(2), pages 345-376, May.
    30. Jolliffe, Dean, 2002. "The Gender Wage Gap in Bulgaria: A Semiparametric Estimation of Discrimination," Journal of Comparative Economics, Elsevier, pages 276-295.
    31. Elizabeth Brainerd, 2000. "Women in Transition: Changes in Gender Wage Differentials in Eastern Europe and the Former Soviet Union," ILR Review, Cornell University, ILR School, pages 138-162.
    32. Shoshana Neuman & Ronald Oaxaca, 2004. "Wage Decompositions with Selectivity-Corrected Wage Equations: A Methodological Note," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, pages 3-10.
    33. Thomas M. Lyons & James J. Heckman & Petra E. Todd, 2000. "Understanding Black-White Wage Differentials, 1960-1990," American Economic Review, American Economic Association, pages 344-349.
    34. Munich, Daniel & Svejnar, Jan & Terrell, Katherine, 2005. "Is women's human capital valued more by markets than by planners?," Journal of Comparative Economics, Elsevier, pages 278-299.
    35. Borjas, George J, 1995. "Ethnicity, Neighborhoods, and Human-Capital Externalities," American Economic Review, American Economic Association, pages 365-390.
    36. A. D. Roy, 1951. "Some Thoughts On The Distribution Of Earnings," Oxford Economic Papers, Oxford University Press, vol. 3(2), pages 135-146.
    37. Jan Rutkowski, 1996. "High skills pay off: the changing wage structure during economic transition in Poland," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 4(1), pages 89-112, May.
    38. Borjas, George J, 1995. "Ethnicity, Neighborhoods, and Human-Capital Externalities," American Economic Review, American Economic Association, pages 365-390.
    39. 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.
    40. Paternostro, Stefano & Sahn, David E., 1999. "Wage determination and gender discrimination in a transition economy : the case of Romania," Policy Research Working Paper Series 2113, The World Bank.
    41. Amitabh Chandra, 2000. "Labor-Market Dropouts and the Racial Wage Gap: 1940-1990," American Economic Review, American Economic Association, pages 333-338.
    42. Oglobin, C., 2005. "The Gender Earnings Differential in Russia After a Decade of Economic Transition," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 5(3).
    43. Svejnar, Jan, 1999. "Labor markets in the transitional Central and East European economies," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 42, pages 2809-2857 Elsevier.
    44. Johnson, George & Solon, Gary, 1986. "Estimates of the Direct Effects of Comparable Worth Policy," American Economic Review, American Economic Association, pages 1117-1125.
    45. Jurajda, Stepan, 2003. "Gender wage gap and segregation in enterprises and the public sector in late transition countries," Journal of Comparative Economics, Elsevier, pages 199-222.
    46. Flanagan, Robert J., 1998. "Were communists good human capitalists? The case of the Czech Republic," Labour Economics, Elsevier, vol. 5(3), pages 295-312, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andrén, Daniela, 2010. ""In every rank, or great or small, ’Tis industry supports us all": Romanians and ethnic Hungarians, and their wages, in transition," Working Papers 2010:1, Örebro University, School of Business.
    2. Andrén, Daniela, 2012. "Romanians, Hungarians and their wages, in transition, in Romania," Economic Modelling, Elsevier, vol. 29(6), pages 2673-2685.

    More about this item

    Keywords

    Occupational segregation; gender wage gap; occupational wage gap; transition;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)
    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
    • P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:gunwpe:0261. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marie Andersson). General contact details of provider: http://edirc.repec.org/data/naiguse.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.