The Russian–Ukrainian Earnings Divide

35 Pages Posted: 16 Dec 2011

See all articles by Amelie F. Constant

Amelie F. Constant

Princeton University; UNU-MERIT; CESifo

Martin Kahanec

IZA Institute of Labor Economics; Central European University; Central European Labour Studies Institute

Klaus F. Zimmermann

Global Labor Organization (GLO); UNU-MERIT; Maastricht University, Department of Economics; Free University Berlin; University of Bonn; Centre for Economic Policy Research (CEPR); Journal of Population Economics

Date Written: January 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.

Keywords: Ethnicity, earnings differences, discrimination, transitional labour markets, ethnic premium

JEL Classification: J15, J70, J82

Suggested Citation

Constant, Amelie F. and Kahanec, Martin and Zimmermann, Klaus F., The Russian–Ukrainian Earnings Divide (January 2012). Economics of Transition, Vol. 20, Issue 1, pp. 1-35, 2012. Available at SSRN: https://ssrn.com/abstract=1973462 or http://dx.doi.org/10.1111/j.1468-0351.2011.00428.x

Amelie F. Constant (Contact Author)

Princeton University ( email )

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Martin Kahanec

IZA Institute of Labor Economics ( email )

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Germany

Central European University ( email )

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Budapest, H-1051
Hungary

Central European Labour Studies Institute ( email )

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Slovakia

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Klaus F. Zimmermann

Global Labor Organization (GLO) ( email )

Bonn
Germany

HOME PAGE: http://https://glabor.org/

UNU-MERIT ( email )

Keizer Karelplein 19
Maastricht, 6211TC
Netherlands

Maastricht University, Department of Economics ( email )

P.O. Box 616
Maastricht, 6200MD
Netherlands

University of Bonn

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Bonn, D-53012
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Journal of Population Economics

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