The Russian-Ukrainian Earnings Divide

28 Pages Posted: 15 Oct 2006

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

Multiple version iconThere are 2 versions of this paper

Date Written: September 2006

Abstract

Ethnic differences are often considered to be powerful sources of diverse economic behavior. In this paper, we investigate whether and how ethnicity affects Ukrainian labor market outcomes. Using micro data from the Ukrainian Longitudinal Monitoring Survey (ULMS) and Oaxaca-Blinder decomposition of earnings, we find a persistent and rising labor 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 favoring Russians. Our findings further document that this premium is larger among males than among females.

Keywords: ethnicity, earnings differences, discrimination, transitional labor 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 (September 2006). IZA Discussion Paper No. 2330. Available at SSRN: https://ssrn.com/abstract=937351

Amelie F. Constant (Contact Author)

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Martin Kahanec

IZA Institute of Labor Economics ( email )

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Central European University ( email )

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Central European Labour Studies Institute ( email )

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Klaus F. Zimmermann

Global Labor Organization (GLO) ( email )

Bonn
Germany

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UNU-MERIT ( email )

Keizer Karelplein 19
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Netherlands

Maastricht University, Department of Economics ( email )

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University of Bonn

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Centre for Economic Policy Research (CEPR)

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Journal of Population Economics

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