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The wage effects of ethnicity in Estonia

Author

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  • Charles Kroncke
  • Kenneth Smith

Abstract

Using the retrospective (1989‐94) Estonian Labour Force Survey (ELFS), we attempt to examine potential wage discrimination based on ethnicity (Estonian and Russian). Using standard wage decomposition methodology, we look at male full‐time workers in the years 1989 and 1994. There is no evidence of discrimination against either ethnic group in 1989. However, the available data provide substantial evidence of discrimination against ethnic Russians in 1994. The evidence also suggests that Estonian language ability does not significantly affect wages. Surprisingly, Estonian‐born ethnic Russians appear to fare worse than immigrant ethnic Russians in terms of wages. JEL classification: J71, P23.

Suggested Citation

  • Charles Kroncke & Kenneth Smith, 1999. "The wage effects of ethnicity in Estonia," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 179-199, March.
    • Handle: RePEc:bla:etrans:v:7:y:1999:i:1:p:179-199
    DOI: 10.1111/1468-0351.00009
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    Citations

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    Cited by:

    1. Zuzana Brixiova, 2009. "Labour Market Flexibility In Estonia: What More Can Be Done?," William Davidson Institute Working Papers Series wp964, William Davidson Institute at the University of Michigan.
    2. Campos, Nauro F. & Dabusinskas, Aurelijus, 2009. "So many rocket scientists, so few marketing clerks: Estimating the effects of economic reform on occupational mobility in Estonia," European Journal of Political Economy, Elsevier, vol. 25(2), pages 261-275, June.
    3. George Psacharopoulos & Harry Anthony Patrinos, 2004. "Returns to investment in education: a further update," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 111-134.
    4. Leping, Kristian-Olari & Toomet, Ott, 2008. "Emerging ethnic wage gap: Estonia during political and economic transition," Journal of Comparative Economics, Elsevier, vol. 36(4), pages 599-619, December.
    5. Kristjan-Olari Leping & Ott Toomet, 2007. "Ethnic Wage Gap And Political Break-Ups: Estonia During Political And Economic Transition," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 53, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    6. Randall K. Filer & Jan Hanousek, 2002. "Data Watch: Research Data from Transition Economies," Journal of Economic Perspectives, American Economic Association, vol. 16(1), pages 225-240, Winter.
    7. Mihails Hazans, 2007. "Looking for the workforce: the elderly, discouraged workers, minorities, and students in the Baltic labour markets," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 34(4), pages 319-349, September.
    8. Robert S. Chase, 2001. "Labor Market Discrimination During Post-Communist Transition: A Monopsony Approach to the Status of Latvia's Russian Minority," William Davidson Institute Working Papers Series 381, William Davidson Institute at the University of Michigan.
    9. Boriss Siliverstovs & Dmitri Koulikov, 2003. "Labor Supply of Married Females in Estonia," Discussion Papers of DIW Berlin 321, DIW Berlin, German Institute for Economic Research.
    10. Pham, T. Hung & Reilly, Barry, 2007. "Ethnic Wage Inequality in Vietnam: Empirical Evidence from 2002," MPRA Paper 6477, University Library of Munich, Germany.
    11. Lisa Giddings, 2003. "Continued decline for ethnic minorities in the transition?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 621-648, December.
    12. Steven B. Caudill & Charles O. Kroncke & Franklin G. Mixon, 2021. "Is there a firm size‐wage gap after economic transition? – An examination of for‐profit and not‐for‐profit firms in Estonia," LABOUR, CEIS, vol. 35(4), pages 435-449, December.
    13. Kenneth Smith, 2007. "Determinants of Soviet Household Income," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 4(1), pages 3-24, June.
    14. Mihails Hazans & Ija Trapeznikova & Olga Rastrigina, 2008. "Ethnic and parental effects on schooling outcomes before and during the transition: evidence from the Baltic countries," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(3), pages 719-749, July.
    15. Campos, Nauro F. & Aurelijus Dabusinskas, 2002. "So Many Rocket Scientists, So Few Marketing Clerks: Occupational Mobility in Times of Rapid Technological Change," Royal Economic Society Annual Conference 2002 38, Royal Economic Society.
    16. Tairi Room, 2004. "Search Intensity and Wage Differences," Bank of Estonia Working Papers 2004-1, Bank of Estonia, revised 12 Oct 2004.
    17. Kenneth Smith, 2011. "Labor force participation in the Soviet and post-Soviet Baltic States," Economic Change and Restructuring, Springer, vol. 44(4), pages 335-355, November.
    18. Mihails Hazans, 2003. "Returns to Education in the Baltic Countries," SSE Riga/BICEPS Research Papers 2003-1, Baltic International Centre for Economic Policy Studies (BICEPS);Stockholm School of Economics in Riga (SSE Riga).
    19. Hahm, Sabrina & Gazzola, Michele, 2022. "The Value of Foreign Language Skills in the German Labor Market," Labour Economics, Elsevier, vol. 76(C).
    20. Andrén, Daniela, 2012. "Romanians, Hungarians and their wages, in transition, in Romania," Economic Modelling, Elsevier, vol. 29(6), pages 2673-2685.

    More about this item

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • P23 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Factor and Product Markets; Industry Studies; Population

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