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Wage Ceilings and Floors: The Gender Gap in Ukraine's Transition

Author

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  • Ganguli, Ina

    (University of Massachusetts Amherst)

  • Terrell, Katherine

    (University of Michigan)

Abstract

This paper uses new micro data from the Ukrainian Longitudinal Monitoring Survey (ULMS) to examine the gender gaps across the distribution of wages in Ukraine during communism (1986), the start of transition (1991), and after Ukraine started to be considered a market economy (2003). We find that the gender pay gap is higher in the top half of the distribution than at the bottom half and that this 'glass ceiling' is persistent across the three points in time, while the wage floor rose for women in 2003. Closer inspection of two sectors – the private and the public – reveals the striking finding that the glass ceiling is lower in the public than in the private sector but the floor is the same. We use the Machado and Mata (2004) method to create counterfactuals that advance our knowledge of which factors are driving these differences; we find that the differences in men's and women's rewards (?s) rather than differences in their productive characteristics (Xs) explain most of the wage gap throughout the distribution. The different ceilings in the public and private sectors are largely due to differences in men's and women's productive characteristics, which favor men in the public and women in the private sector. The fall in the gender gap in the lower part of the distribution from 1986 to 2003 is explained partially by the improvement in women's productive characteristics and partially by the worsening in men's rewards in the bottom half of the distribution over time. However, probably the most important reason for the reduction in the gap at the bottom of the distribution over time is that the value of the minimum wage was set relatively high in 2003 and it raised the wage floor for more women than men.

Suggested Citation

  • Ganguli, Ina & Terrell, Katherine, 2005. "Wage Ceilings and Floors: The Gender Gap in Ukraine's Transition," IZA Discussion Papers 1776, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp1776
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    Cited by:

    1. Alejandro Badel & Ximena Peña, 2010. "Decomposing the Gender Wage Gap with Sample Selection Adjustment: Evidence from Colombia," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 25(2), pages 169-191, Diciembre.
    2. Thomas Dohmen & Hartmut Lehmann & Anzelika Zaiceva, 2008. "The Gender Earnings Gap inside a Russian Firm: First Evidence from Personnel Data - 1997 to 2002 ; Updated Version," ESCIRRU Working Papers 6, DIW Berlin, German Institute for Economic Research.
    3. Kampon ADIREKSOMBAT & FANG Zheng & Chris SAKELLARIOU, 2010. "The Evolution of Gender Wage Differentials and Discrimination in Thailand: 1991-2007 — An Application of Unconditional Quantile Regression," Economic Growth Centre Working Paper Series 1005, Nanyang Technological University, School of Social Sciences, Economic Growth Centre.
    4. Salma Ahmed & Pushkar Maitra, 2015. "A Distributional Analysis of the Gender Wage Gap in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 51(11), pages 1444-1458, November.
    5. Dileni Gunewardena & Darshi Abeyrathna & Amalie Ellagala & Kamani Rajakaruna & Shobana Rajendran, 2008. "Glass Ceilings, Sticky Floors or Sticky Doors? A Quantile Regression Approach to Exploring Gender Wage Gaps in Sri Lanka," Working Papers PMMA 2008-04, PEP-PMMA.
    6. Karolina Goraus & Joanna Tyrowicz & Lucas van der Velde, 2017. "How (Not) to make women work?," GRAPE Working Papers 1, GRAPE Group for Research in Applied Economics.
    7. Dohmen, Thomas & Lehmann, Hartmut & Zaiceva, Anzelika, 2008. "The gender earnings gap inside a Russian firm : first evidence from personnel data - 1997 to 2002," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 157-179.
    8. Ge, Yuhao & Li, Hongbin & Zhang, Junsen, 2011. "Gender earnings gaps in Hong Kong: Empirical evidence from across the earnings distribution in 2006," China Economic Review, Elsevier, vol. 22(1), pages 151-164, March.
    9. Nizalova, Olena Y. & Sliusarenko, Tamara & Shpak, Solomiya, 2016. "The motherhood wage penalty in times of transition," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 56-75.
    10. Zheng Fang & Chris Sakellariou, 2011. "A Case of Sticky Floors: Gender Wage Differentials in Thailand," Asian Economic Journal, East Asian Economic Association, vol. 25(1), pages 35-54, March.
    11. Norberto Pignatti, 2012. "Gender wage gap dynamics in a changing Ukraine," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 1(1), pages 1-44, December.
    12. Tamar Khitarishvili, 2018. "Gender Pay Gaps in the Former Soviet Union: A Review of the Evidence," Economics Working Paper Archive wp_899, Levy Economics Institute.
    13. Tamar Khitarishvili, 2016. "Two tales of contraction: gender wage gap in Georgia before and after the 2008 crisis," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-28, December.
    14. Karolina Goraus & Joanna Tyrowicz, 2013. "The Goodwill Effect? Female Access to the Labor Market Over Transition: A Multicountry Analysis," Working Papers 2013-19, Faculty of Economic Sciences, University of Warsaw.
    15. Zheng Fang & Chris Sakellariou, 2015. "Glass Ceilings versus Sticky Floors: Evidence from Southeast Asia and an International Update," Asian Economic Journal, East Asian Economic Association, vol. 29(3), pages 215-242, September.
    16. Amelie F. Constant & Martin Kahanec & Klaus F. Zimmermann, 2012. "The Russian–Ukrainian earnings divide," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(1), pages 1-35, January.
    17. Castagnetti, Carolina & Giorgetti, Maria Letizia, 2019. "Understanding the gender wage-gap differential between the public and private sectors in Italy: A quantile approach," Economic Modelling, Elsevier, vol. 78(C), pages 240-261.
    18. Tamar Khitarishvili, 2013. "Evaluating the Gender Wage Gap in Georgia, 2004 - 2011," Economics Working Paper Archive wp_768, Levy Economics Institute.
    19. Dohmen, Thomas & Lehmann, Hartmut & Zaiceva, Anzelika, 2008. "The gender earnings gap inside a Russian firm : first evidence from personnel data - 1997 to 2002," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 157-179.
    20. Kampon Adireksombat & Zheng Fang & Chris Sakellariou, 2016. "The Evolution Of Gender Wage Differentials In Thailand: 1991–2007 — An Application Of Unconditional Quantile Regression," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 61(05), pages 1-30, December.
    21. repec:iab:iabzaf:v:41:i:2-3:p:157-179 is not listed on IDEAS

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    More about this item

    Keywords

    Ukraine; transition; glass floors; glass ceilings; quantile regression; gender gap;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • I2 - Health, Education, and Welfare - - Education
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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