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The Russian–Ukrainian Earnings DivideAmelie ConstantInstitute for the Study of Labor (IZA); DIW DC Martin KahanecInstitute for the Study of Labor (IZA); Central European University; Central European Labour Studies Institute Klaus F. ZimmermannInstitute for the Study of Labor (IZA); German Institute for Economic Research (DIW Berlin); University of Bonn; Journal of Population Economics; Centre for Economic Policy Research (CEPR) January 2012 Economics of Transition, Vol. 20, Issue 1, pp. 1-35, 2012 Abstract: Ethnic differences are often considered to be powerful sources of diverse economic behaviour. In this article, we investigate to what extent ethnicity affects Ukrainian labour market outcomes. Using microdata from the Ukrainian Longitudinal Monitoring Survey and the Oaxaca–Blinder decomposition of earnings, we find a persistent and increasing labour market divide between ethnic Russians and Ukrainians throughout Ukraine’s transition era. We establish that language, rather than nationality, is the key factor behind this ethnic premium favouring Russians. Our findings further document that this premium is larger amongst males than females.
Number of Pages in PDF File: 35 Keywords: Ethnicity, earnings differences, discrimination, transitional labour markets, ethnic premium JEL Classification: J15, J70, J82 Accepted Paper SeriesDate posted: December 16, 2011Suggested CitationContact Information
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