When Does Transition Increase the Gender Wage Gap? An Application to Belarus

47 Pages Posted: 14 Jun 2007

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

Alina Verashchagina

University of Rome "La Sapienza"

Date Written: May 2007

Abstract

This paper suggests an analytical framework to analyse the joint evolution of female participation and wages across countries in Central and Eastern Europe (CEE) and the Former Soviet Union (FSU), of which Belarus is a particular case. In CEE, female participation has reduced relatively more than wages, due to greater wage rigidity; in the FSU, wages have reduced more than participation, due to labour hoarding practices. In Belarus, only wages adjust, since (mainly state owned) firms tend to largely maintain their entire workforce. Underneath slow transition and remarkably stable female participation rates (at over 80%), the unconditional gender gap in log hourly wages has increased by a half, while that in log of net and total monthly wages has more than doubled over almost a decade (1996-2004). The Juhn, Murphy and Pierce (1991) decomposition suggests that the deterioration of women wages is caused by negative changes in observed characteristics (due to horizontal segregation) and in the remuneration for those characteristics. Instead, very bland changes in the residual wage distribution tended to reduce (not to increase) the gender wage gap: in fact, women have benefited both of changes in the degree of wage inequality and of gains in the mean female rank in the male residual distribution.

Keywords: evolution of the gender wage gap, decomposition analysis, wage inequality, economic transition, Belarus

JEL Classification: J16, J22, J31, P20

Suggested Citation

Pastore, Francesco and Verashchagina, Alina, When Does Transition Increase the Gender Wage Gap? An Application to Belarus (May 2007). IZA Discussion Paper No. 2796, Available at SSRN: https://ssrn.com/abstract=991644

Francesco Pastore

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

Alina Verashchagina (Contact Author)

University of Rome "La Sapienza" ( email )

Italy

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