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Gender wage gap in Estonia: a non-parametric decomposition

Author

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  • Sten Anspal

    (The Estonian Center for Applied Research – CENTAR)

Abstract

Estonia has the highest gender wage gap in the European Union and the highest degree of gender segregation by occupation and industry. Previous studies have found that most of the gap remains unexplained by personal and job characteristics. However, key job characteristics, occupation and industry, are usually imprecisely measured, leading to the question of whether all relevant characteristics have been properly taken into account in the decompositions. In this paper, we perform the decomposition of the wage gap to see how much of the wage gap remains unexplained after using more detailed data than has been common in previous studies (the Estonian Structure of Earnings Study data set), and discuss the related methodological challenges. Using a non-parametric method that takes into account differences in supports of distributions of male and female workers’ characteristics, we find that using more detailed data does not eliminate the unexplained wage gap: about half of the wage gap remains unexplained even using the full set of available variables.

Suggested Citation

  • Sten Anspal, 2015. "Gender wage gap in Estonia: a non-parametric decomposition," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 15(1), pages 1-16.
    • Handle: RePEc:bic:journl:v:15:y:2015:i:1:p:1-16
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    File URL: http://www.tandfonline.com/doi/pdf/10.1080/1406099X.2015.1022436
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    Citations

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    Cited by:

    1. Ilona Pavlenkova & Luca Alfieri & Jaan Masso, 2024. "Effects of automation on the gender pay gap: the case of Estonia," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 33(3), pages 584-608.
    2. Magda, Iga & Salach, Katarzyna, 2019. "Gender Pay Gap Patterns in Domestic and Foreign-Owned Firms," IZA Discussion Papers 12453, Institute of Labor Economics (IZA).
    3. Magda, Iga & Cukrowska-Torzewska, Ewa, 2018. "Do Female Managers Help to Lower Within-Firm Gender Pay Gaps? Public Institutions vs. Private Enterprises," IZA Discussion Papers 12026, Institute of Labor Economics (IZA).
    4. Heili Hein & Aaro Hazak & Kadri Männasoo, 2017. "Who has a better chance of getting higher salaries among creative R&D employees?," TUT Economic Research Series 39, Department of Finance and Economics, Tallinn University of Technology.

    More about this item

    Keywords

    gender wage gap; labour market segregation; matching; non-parametric decomposition;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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