Female Access to the Labor Market and Wages Over Transition: A Multicountry Analysis
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Transcript of Female Access to the Labor Market and Wages Over Transition: A Multicountry Analysis
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Female Access to the Labor Market and WagesOver Transition
A Multicountry Analysis
Karolina Goraus Joanna Tyrowicz
Faculty of Economic SciencesUniversity of Warsaw
International Economic Association CongressJordan, 8 June 2014
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Outline
1 Motivation
2 Research goals
3 Women on the labor market in transition
4 Data and methodologyResearch methodData sources
5 Empirical resultsFirst stage: analysis of micro-level dataSecond stage: analysis of obtained gender gaps estimates
6 Conclusions
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
What is the reason of gender wage differentials?
Gender wage gaps
Italy 2005 15.7% Picchio, Mussida, 2010Italy 2008 24.16% Nopo, Daza, Ramos, 2011
Czech Republic 1998 30% Jurajda, 2001Czech Republic 2008 35.19% Nopo, Daza, Ramos, 2011
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Major contributions in international analysis of gender gaps
Weichselbaumer and Winter-Ebmer (2007)meta-analysis of 263 papers exploring gender wage gaps in 62countriesincomparability of estimators
Nopo, Daza and Ramos (2011)attempt to estimate gender wage gaps for 63 countries withthe same methodologyhuge differences in gender gaps between countriesunknown reasons
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Context of transition
”Do Markets Favor Women’s Human Capital More ThanPlanners?” (Munich, Svejnar, Terrell, 2004)
gender wage gap in Czech Republic decreased from 33% inyear 1989 to 25% in year 2002
although women have higher returns on education in themarket system, similar changes have been observed for men,thus it is not a reason of declining gender wage gap
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Raw wage gap vs. ”discrimination” in Poland
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Research goals
1 Investigating the position of women on the labor market intransition
2 Analysing the international variation in gender gaps usingcoherent estimators
3 Exploring differences between CEEC and Western Europe, aswell as within the group of transition economies
4 Verifying if higher FLFP leads to lower discrimination
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Different trends in FLFP in CEEC and Western Europe
Total sample Advanced Transition
Time 0.397*** 0.668*** -0.443***(0.0365) (0.0402) (0.0456)
Observations 631 338 203R2 0.167 0.465 0.336No of countries 42 18 15Note: panel fixed effect robust estimator. Constant included.
Data source: ILO. Transition: Albania, Belarus, Bulgaria, Czech Republic, Estonia,
Hungary, Latvia, Lithuania, Poland, Romania, Russia, Slovakia, Slovenia, Ukraine.
Advanced: Austria, Belgium, Denmark, Finland, France, E & W Germany , Greece,
Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and United
Kingdom. Standard errors in parentheses, *** p<0.01, ** p<0.05, * p<0.1
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Different trends in FLFP in CEEC and Western Europe
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Share of highly educated females & FLFP
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Share of females with children under 5 years & FLFP
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Mean age of active female & FLFP
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Research methodData sources
How to measure discrimination?
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Research methodData sources
Research method
Oaxaca-Blinder decomposition
yM − yF = βM(xM − xF ) + (βM − βF )xF
Decomposition of Nopo
δ = δM + δX + δA + δF
δM - can be explained by differences between „matched” and„unmatched” malesδX - can be explained by differences in the distribution ofcharacteristics of males and females over the common supportδA - unexplained part of the gapδF - can be explained by differences between „matched” and„unmatched” females
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Research methodData sources
Varius sources of micro-level data
National censuses (acquired from Integrated Public UseMicrodata Series International)
International Social Survey Program
Living Standard Measurement Surveys of The World Bank
National Labor Force Surveys
European Union Labor Force Survey
European Community Household Panel
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Research methodData sources
Data on transition countries
Country LFS EU LFS Census LSMS ISSP
Albania 2002-2005Armenia 2001Belarus 1999Bosnia & H. 2001-2004Bulgaria 2000-2008 1995, 1997, 2001, 2003 1993-1995Croatia 1997-2008Czech R. 1998-2008 1993-1995Estonia 1997-2008 1992-1995Hungary 1997-2008 1970, 1980, 1990, 2001 1989-1995Kyrgyzstan 1993, 1996-1998Latvia 1998-2008 1995Lithuania 1998-2008 1995Poland 1995-2010 1997-2008 1987, 1991-1995Romania 1997-2008 1977, 1992, 2002Russia 1991-1995Serbia 2002-2004, 2007Slovakia 1998-2008 1995Slovenia 1996-2008 2002 1991-1995Tajikistan 1999, 2003, 2009
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Research methodData sources
Data on benchmark countries
Country EU LFS ECHP ISSP
Austria 1995-2008 1995-2001 1989-1995Belgium 1992-2008 1994-2001Denmark 1992-2008 1994-2001Finland 1995-2008 1996-2001France 1993-2008 1994-2001Germany 2002-2008 1994-2001 1989-1995Greece 1992-2008 1994-2001Ireland 1999-2008 1994-2001 1989-1995Italy 1992-2008 1994-2001 1989- 1995Netherlands 1996-2008 1994-2001 1989-1995Norway 1996-2008 1989-1995Portugal 1992-2008 1994-2001Spain 1992-2008 1994-2001 1993-1995Sweden 1995-2008 1997-2001 1994-1995Switzerland 1996-2008 1987UK 1992-2008 1994-2001 1989-1995
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
First stage: analysis of micro-level dataSecond stage: analysis of obtained gender gaps estimates
Empirical analysis
Two stages1 Obtaining comparable measures of gender discrimination in
employment rates and wages (∆A) - Nopo (2008)decompositions.
2 Using gender gap estimates as explained variables, whereascountry characteristics as explanatory variables. Identify thecorrelates (better yet: determinants) of the stark differentialsin measured ∆A.
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
First stage: analysis of micro-level dataSecond stage: analysis of obtained gender gaps estimates
Results of Nopo decomposition for Poland
Characteristics ∆ ∆A ∆M ∆F ∆X % M % KDemographic 10% 20% 0% 0% -10% 99 97+ Occupation 10% 20% 0% 0% -10% 96 93+ Sector 10% 20% -1% -1% -9% 92 92+ Public 10% 21% 0% -1% -10% 99 95+ Informal 10% 21% 0% 0% -10% 99 97+ Tenure 10% 21% 0% -1% -10% 99 95All 10% 19% -2% -1% -6% 65 74
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
First stage: analysis of micro-level dataSecond stage: analysis of obtained gender gaps estimates
Descriptive statistics of obtained estimates
matched M matched F raw gap ∆M ∆F ∆A ∆X
Participation gap, N=628Mean 99% 99% 34% 0.2% 0.2% 16% -1%Minimum 81% 60% -7% -14% -26% 0.5% -16%Maximum 100% 100% 138% 25% 7% 43% 36%
Wage gap, N=187Mean 71% 77% 18% 2% 1% 15% 0.3%Minimum 2% 3% -6% -60% -55% -90% -37%Maximum 99% 99% 138% 111% 74% 62% 51%
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
First stage: analysis of micro-level dataSecond stage: analysis of obtained gender gaps estimates
Distribution of gender gaps
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
First stage: analysis of micro-level dataSecond stage: analysis of obtained gender gaps estimates
Focus on the transition context
Three types of measures:1 years from transition2 EBRD Reform Index (1 - 4)
privatizationenterprise restructuring
3 indexes of the Cingranelli-Richards (CIRI) Human RightsDataset (1 - 3)
Women’s Economic Rights indexWomen’s Social Rights index
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
First stage: analysis of micro-level dataSecond stage: analysis of obtained gender gaps estimates
Years from transition
Year of transformation No. of country/sets
Albania 1992 4Armenia 1991 1Bosnia & Herzegovina 1993 4Bulgaria 1991 16Croatia 1992 13Czech Republic 1989 14Estonia 1991 12Hungary 1989 25Kyrgistan 1992 4Latvia 1991 12Lithuania 1991 11Poland 1989 32Romania 1990 15Russia 1991 4Serbia 1993 3Slovakia 1989 12Slovenia 1991 18Tajikistan 1992 3
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
First stage: analysis of micro-level dataSecond stage: analysis of obtained gender gaps estimates
Percentage of females matched in the wage gapdecompositions
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
First stage: analysis of micro-level dataSecond stage: analysis of obtained gender gaps estimates
Adjusted wage gap All % matched over 30 % matched over 30, EBRD evaluated % matched over 30
Female participation rate -1.472*** -3.984*** -3.514*** -2.290** -3.957*** -7.373*** -7.425***(0.7429) (0.9029) (1.7181) (1.2658) (1.8100) (1.1104) (1.1344)
x Transition 2.535*** 5.052*** 35.309 27.701 5.862 7.512*** 7.847***(1.0092) (1.2196) (44.8532) (31.1209) (47.3125) (1.2782) (1.3919)
Years from transition 0.100*** 0.062 0.039 0.084 0.108 -0.0001 0.022(0.0348) (0.0450) (0.1315) (0.0916) (0.1339) (0.0441) (0.0451)
squared -0.004*** -0.001 -0.001 -0.006 -0.002 0.002 0.002(0.0015) (0.0019) (0.0061) (0.0045) (0.0065) (0.0019) (0.0019)
x Transition -0.078** -0.033 9.375 4.897 0.357 0.078 0.097**(0.0422) (0.0523) (11.0341) (7.3705) (11.0925) (0.0544) (0.0561)
squared x Transition 0.004*** 0.001 -0.090 -0.044 -0.003 -0.003 -0.003**(0.0015) (0.0019) (0.1075) (0.0718) (0.1080) (0.0019) (0.0019)
% of females with tertiary education -0.631 -0.672 4.970 21.863*** -0.447 -0.342 -0.562(0.7991) (0.8489) (11.2638) (8.7870) (11.5959) (0.7725) (0.7904)
Mean age of active female 0.069*** -0.003 -0.058 0.068 -0.056 0.018 0.002(0.0219) (0.0292) (0.1014) (0.0765) (0.1074) (0.0268) (0.0271)
% of HH with children under 5 0.867*** 3.021*** 5.932*** 13.399*** 4.577* 7.253*** 7.592***(0.3461) (1.2163) (2.8513) (2.5122) (2.9900) (1.6902) (1.7312)
EBRD - large scale privatization 0.676**(0.3577)
EBRD - small scale privatization 2.614***(0.4538)
EBRD - governance and enterprise restructuring -0.131(0.4477)
CIRI - womens’ economic rights 0.341***(0.1191)
CIRI - womens’ social rights 0.128**(0.0773)
Constant -2.948*** 0.220 -37.186 -32.481 1.608 -1.797* -0.375(0.8577) (1.1951) (46.3010) (31.1332) (46.5176) (1.1598) (1.2762)
Observations 196 163 54 54 54 160 160R-squared 0.383 0.505 0.570 0.775 0.518 0.601 0.390
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
First stage: analysis of micro-level dataSecond stage: analysis of obtained gender gaps estimates
Adjusted participation gap AREG EBRD evaluated All All EBRD evaluated
Year from transition -0.005*** -0.005* -0.007*** -0.008*** -0.006*** -0.004** -0.002(0.0007) (0.0031) (0.0030) (0.0026) (0.0022) (0.0023) (0.0038)
squared 0.0002*** 0.0002** 0.0002*** 0.0002*** 0.0002*** 0.0002* 0.000(0.00001) (0.0001) (0.0001) (0.0001) (0.0001) (0.0001) (0.0001)
x Transiton -0.007*** -0.011 -0.003 -0.000 -0.007*** -0.008*** -0.011(0.0013) (0.0314) (0.0301) (0.0305) (0.0025) (0.0026) (0.0334)
squared x Transition -0.0002*** -0.0002 -0.0002 -0.0002 -0.0002** -0.0002 -0.0002(0.00003) (0.0003) (0.0003) (0.0003) (0.0001) (0.0001) (0.0003)
% of females with tertiary education 0.163*** 0.124* 0.138** 0.126* 0.161*** 0.177*** 0.079(0.0498) (0.0801) (0.0818) (0.0816) (0.0522) (0.0522) (0.0920)
Mean age of active females 0.004*** 0.002 0.002 0.002 0.004*** 0.004*** 0.002(0.0013) (0.0020) (0.0020) (0.0020) (0.0013) (0.0013) (0.0020)
% of HH with children under 5 -0.115*** -0.004 -0.002 -0.002 -0.119*** -0.127*** -0.048(0.0159) (0.0354) (0.0354) (0.0353) (0.0163) (0.0164) (0.0389)
EBRD - large scale privatization -0.007 -0.014(0.0077) (0.0098)
EBRD - small scale privatization -0.002 -0.005(0.0064) (0.0100)
EBRD - governance and enterprise restructuring 0.003 0.008(0.0083) (0.0102)
CIRI - womens’ economic rights -0.010 0.009(0.0070) (0.0109)
CIRI - womens’ social rights -0.010*** -0.010(0.0040) (0.0068)
Constant 0.622*** 0.480*** 0.450*** 0.445*** 0.630*** 0.613*** 0.448***(0.0916) (0.1531) (0.1509) (0.1519) (0.0966) (0.0961) (0.1616)
Observations 628 207 207 207 589 586 199R-squared 0.898 0.804 0.803 0.803 0.899 0.901 0.813
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Conclusions & Plans
Great international variation in the extent of genderdifferences on the labor market
Most of the variation seems to be caused by the country fixedeffects
Higher FLFP seem to be related with the lower adjusted wagegaps - The Goodwill Effect!
Plans for the future
Improving data on the RHS and LHS!
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition
MotivationResearch goals
Women on the labor market in transitionData and methodology
Empirical resultsConclusions
Thank you for your attention
Karolina Goraus, Joanna Tyrowicz Female Access to the Labor Market and Wages Over Transition