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Gender Differences in Earnings and Labor Supply in Early Career: Evidence from Kosovo's School-to-Work Transition Survey

Author

Listed:
  • Pastore, Francesco

    (Università della Campania Luigi Vanvitelli)

  • Sattar, Sarosh

    (World Bank)

  • Tiongson, Erwin R.

    (World Bank)

Abstract

Very little is known about gender wage disparities in Kosovo and, to date, nothing is known about how such wage disparities evolve over time, particularly during the first few years spent by young workers in the labor market. More generally, not much is known about gender wage gaps in early career worldwide, a period which is perceived to be an important determinant of the overall gender wage disparity. This paper analyzes data from the School-to-Work Transition (SWT) survey, an unusual survey conducted by the ILO between 2004 and 2006 in eight countries, including Kosovo, that documents the labor market experiences of the youngest age segment in the labor force (age 15–25 years). The results of the analysis suggest that, on average, women have lower education attainment than men but this educational disparity is masked among the sample of employed men and women who tend to be well-educated. The consequences of this dramatic segmentation of labor market participation are striking. On average, there is little or no gender wage gap. The results of the Juhn et al. (1993) decomposition analysis reveals that gender wage differences are almost entirely driven by differences in characteristics (rather than either the returns to those characteristics or the residual). The greater average educational attainment of employed women, among other characteristics, tends to fully offset the gender wage gap. Not surprisingly, the returns to women's education among employed women are low because there is little variation in educational attainment among the sample of well-educated employed women. When the analysis controls for sample selection bias and heterogeneity, the returns to women's education rise, confirming the lower productivity-related characteristics of non-employed women compared to employed women. The relatively small sample constrains a fuller analysis of the emergence of the gender wage gap, which, according to a small but growing international literature, typically materializes during childbearing years.

Suggested Citation

  • Pastore, Francesco & Sattar, Sarosh & Tiongson, Erwin R., 2013. "Gender Differences in Earnings and Labor Supply in Early Career: Evidence from Kosovo's School-to-Work Transition Survey," IZA Discussion Papers 7461, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp7461
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    References listed on IDEAS

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    1. Ben Jann, 2006. "FAIRLIE: Stata module to generate nonlinear decomposition of binary outcome differentials," Statistical Software Components S456727, Boston College Department of Economics, revised 26 May 2008.
    2. Francesco Pastore & Alina Verashchagina, 2011. "When does transition increase the gender wage gap?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 19(2), pages 333-369, April.
    3. Kunze, Astrid, 2005. "The evolution of the gender wage gap," Labour Economics, Elsevier, vol. 12(1), pages 73-97, February.
    4. Francesco Pastore, 2009. "School-to-Work Transitions in Mongolia," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 6(2), pages 245-264, December.
    5. Hoti Avdullah, 2011. "Returns for Education in Kosovo: Estimates of Wage and Employment Premia," South East European Journal of Economics and Business, Sciendo, vol. 6(1), pages 71-84, April.
    6. Sokol Havolli, 2011. "Determinants of Migrants’ Earnings and Remittances: Evidence from Kosovo," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 90-99.
    7. 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, vol. 2(1), pages 3-10, April.
    8. Francesco Pastore, 2010. "Returns to education of young people in Mongolia," Post-Communist Economies, Taylor & Francis Journals, vol. 22(2), pages 247-265.
    9. Francesco Pastore, 2010. "The gender gap in early career in Mongolia," International Journal of Manpower, Emerald Group Publishing, vol. 31(2), pages 188-207, May.
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    Cited by:

    1. Judith Möllers & Wiebke Meyer, 2014. "The effects of migration on poverty and inequality in rural Kosovo," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-18, December.
    2. Pastore, Francesco & Sattar, Sarosh & Sinha, Nistha & Tiongson, Erwin R., 2016. "When Do Gender Wage Differences Emerge? A Study of Azerbaijan's Labor Market," IZA Discussion Papers 9660, Institute of Labor Economics (IZA).
    3. Gashi Ardiana & Adnett Nick, 2020. "Are Women Really Paid More than Men in Kosovo? Unpicking the Evidence," South East European Journal of Economics and Business, Sciendo, vol. 15(2), pages 83-95, December.
    4. Ardiana Gashi & Artane Rizvanolli & Nick Adnett, 2019. "Bucking the Trend: Female Labor Market Participation in Kosovo," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 21(2), pages 85-116, December.
    5. Biswajit Banerjee, 2014. "Occupational segregation and gender differentials in earnings in Macedonia," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-27, December.

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    More about this item

    Keywords

    Balkans area; decomposition analysis; gender wage gap and dynamics; early labor market outcomes; school-to-work transitions; earnings equations; Kosovo;
    All these keywords.

    JEL classification:

    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • 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
    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • P30 - Economic Systems - - Socialist Institutions and Their Transitions - - - General

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