When Do Gender Wage Differences Emerge? A Study of Azerbaijan's Labor Market

55 Pages Posted: 18 Jan 2016

See all articles by Francesco Pastore

Francesco Pastore

Seconda Università di Napoli - Dipartimento di Discipline Giuridiche ed Economiche Italiane Europee e Comparate; IZA Institute of Labor Economics

Sarosh Sattar

World Bank

Nistha Sinha

World Bank

Erwin R. Tiongson

Georgetown University - Edmund A. Walsh School of Foreign Service (SFS); Institute for the Study of Labor (IZA); University College London - CReAM - Centre for Research and Analysis of Migration; Asian Institute of Management

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Abstract

Building on recent analyses that find a sizeable, overall gender wage gap in Azerbaijan's workforce, this paper uses data on young workers in their early years in the labor market to understand how gender wage gaps evolve over time, if at all. Using a unique database from a survey of young people age 15-29 years old, we provide evidence that new labor market entrants begin with little or no gender differences in earnings, but a wage gap gradually emerges over time closer to the childbearing years. The gender wage gap grows from virtually zero, or even a small, positive gap in favor of women, until the age of 20 years to about 20% two years later and even more than 30% at the age of 29 years. The gap in labor supply rises from almost zero to about 20% during the years from 19 to 22, while the gap in hours worked falls from positive (up to 6 hours per week more than their male counterparts) to negative (up to -5 hours per week) over the same period in the life cycle. When decomposing the gap at different deciles of the wage distribution, it appears that most of it is at the lower and upper end of the distribution, among young adults and the prime-age workers. Selection of women into employment is strong and strongly skill-based: when controlling for sample selection bias, the gender gap becomes positive.

Keywords: gender wage gap and dynamics, early labor market outcomes, school-to-work transitions, earnings equations, decomposition analysis

JEL Classification: I21, J13, J15, J16, J24, J31, J7, P30

Suggested Citation

Pastore, Francesco and Sattar, Sarosh and Sinha, Nistha and Tiongson, Erwin R., When Do Gender Wage Differences Emerge? A Study of Azerbaijan's Labor Market. IZA Discussion Paper No. 9660. Available at SSRN: https://ssrn.com/abstract=2716601

Francesco Pastore (Contact Author)

Seconda Università di Napoli - Dipartimento di Discipline Giuridiche ed Economiche Italiane Europee e Comparate ( email )

Via Antonio Vivaldi, 43
Caserta CE, Caserta 81100
Italy

HOME PAGE: http://www.giurisprudenza.unina2.it/news.php?nid=185

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Sarosh Sattar

World Bank

No Address Available

Nistha Sinha

World Bank ( email )

1818 H Street, N.W.
Washington, DC 20433
United States

Erwin R. Tiongson

Georgetown University - Edmund A. Walsh School of Foreign Service (SFS) ( email )

Washington, DC 20057
United States

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

University College London - CReAM - Centre for Research and Analysis of Migration ( email )

Drayton House
30 Gordon Street
London, WC1H 0AX
United Kingdom

Asian Institute of Management ( email )

123 Paseo de Roxas
Makati, 1260
Philippines

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