The Gender Wage Gap in Bulgaria: A Semiparametric Estimation of Discrimination
Bulgaria's transition to a market economy has coincided with a large increase in wage inequality. Given the emphasis on wage leveling in pre-transition Bulgaria, the rise in wage inequality may be due to managers rewarding more productive workers; or it may be the result of rewarding non-economic characteristics such as gender. Using data from the 1995, nationally representative Bulgaria Integrated Household Survey, I examine whether gender discrimination is an important factor determining the gap in wages between men and women and the extent to which gender discrimination affects wage inequality. I model wage determination with a correction for sample selection as a Type III Tobit and estimate this model with the Honor?? et al. (1997) semiparametric estimator. Unlike the classic Heckman correction for sample selection, this estimator is consistent in the presence of heteroscedasticity. I bootstrap to estimate standard errors. Using separate wage regression estimates for men and women, an Oaxaca decomposition indicates that women's wages are 25 percent lower than men's wages and 85 percent of this differential is due to discrimination, or more precisely, due to differences in how men and women are rewarded for the same characteristics.
|Date of creation:||01 Jul 2001|
|Contact details of provider:|| Postal: 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109|
Phone: 734 763-5020
Fax: 734 763-5850
Web page: http://www.wdi.umich.edu
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Branko Milanovic, 1999. "Explaining the increase in inequality during transition," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(2), pages 299-341, July.
- Powell, James L, 1986. "Symmetrically Trimmed Least Squares Estimation for Tobit Models," Econometrica, Econometric Society, vol. 54(6), pages 1435-1460, November.
- 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;European Society for Population Economics, vol. 13(2), pages 283-303.
- Orazem, Peter F. & Vodopivec, Milan, 1999. "Male-female differences in labor market outcomes during the early transition to market : the case of Estonia and Slovenia," Policy Research Working Paper Series 2087, The World Bank.
- Orazem, Peter & Vodopivec, Milan, 2000. "Male-Female Differences in Labor Market Outcomes During the Early Transition to Market: The Cases of Estonia and Slovenia," Staff General Research Papers Archive 1889, Iowa State University, Department of Economics.
- Honore, Bo E. & Kyriazidou, Ekaterini & Udry, Christopher, 1997. "Estimation of Type 3 Tobit models using symmetric trimming and pairwise comparisons," Journal of Econometrics, Elsevier, vol. 76(1-2), pages 107-128.
- Bo E. Honore & Ekaterini Kyriazidou & Christopher Udry, "undated". "Estimation of Type 3 Tobit Models using Symmetric Trimming and Pairwise Comparisons," Home Pages _001, Princeton University, Department of Economics.
- Appleton, Simon & Hoddinott, John & Krishnan, Pramila, 1999. "The Gender Wage Gap in Three African Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 289-312, January.
- Simon Appleton & John Hoddinott & Pramila Krishnan, 1996. "The gender wage gap in three African countries," CSAE Working Paper Series 1996-07, Centre for the Study of African Economies, University of Oxford.
- 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.
- Christopher Ferrall, 1998. "Routines to maximize a function," Stata Technical Bulletin, StataCorp LP, vol. 7(38).
- Blau, Francine D & Kahn, Lawrence M, 1992. "The Gender Earnings Gap: Learning from International Comparisons," American Economic Review, American Economic Association, vol. 82(2), pages 533-538, May.
- Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, vol. 25(3), pages 303-325, July.
- Arabmazar, Abbas & Schmidt, Peter, 1981. "Further evidence on the robustness of the Tobit estimator to heteroskedasticity," Journal of Econometrics, Elsevier, vol. 17(2), pages 253-258, November.
- Psacharopoulos, George, 1994. "Returns to investment in education: A global update," World Development, Elsevier, vol. 22(9), pages 1325-1343, September.
- Psacharopoulos, George, 1993. "Returns to investment in education : a global update," Policy Research Working Paper Series 1067, The World Bank.
- Nelson, Forrest D, 1981. "A Test for Misspecification in the Censored Normal Model," Econometrica, Econometric Society, vol. 49(5), pages 1317-1329, September.
- Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
- David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
- David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
- Hurd, Michael, 1979. "Estimation in truncated samples when there is heteroscedasticity," Journal of Econometrics, Elsevier, vol. 11(2-3), pages 247-258.
- Pagan, Adrian & Vella, Frank, 1989. "Diagnostic Tests for Models Based on Individual Data: A Survey," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(S), pages 29-59, Supplemen. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wdi:papers:2001-401. 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: (WDI)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.