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Do Markets Favor Women's Human Capital More than Planners?

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  • Münich, Daniel

    (CERGE-EI)

  • Svejnar, Jan

    (Columbia University)

  • Terrell, Katherine

    (University of Michigan)

Abstract

Using micro data on women in the Czech Republic, we compare returns to various measures of human capital at the end of communism (1989), in mid-transition (1996) and in late/posttransition (2002). We show: dramatic increases in returns to education from 1989 to 1996 but no change from 1996 to 2002; no differences in returns to education by state vs. privatelyowned firms; "sheepskin" effects in both regimes, which rise over time and are similar across firm ownership; no difference in returns to education obtained during communism vs. transition; no change in wage-experience profiles over time; and similar increases in returns to education for women and men. In sum, markets pay women and men equally more for their human capital than the planners did; all the adjustment occurred in early transition and was driven by market forces rather than private ownership.

Suggested Citation

  • Münich, Daniel & Svejnar, Jan & Terrell, Katherine, 2004. "Do Markets Favor Women's Human Capital More than Planners?," IZA Discussion Papers 1393, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1393
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    2. Flabbi, Luca & Paternostro, Stefano & Tiongson, Erwin R., 2008. "Returns to education in the economic transition: A systematic assessment using comparable data," Economics of Education Review, Elsevier, vol. 27(6), pages 724-740, December.
    3. Anita V. Staneva & Hany Abdel-Latif, 2016. "From Soviet to Europe: Returns to Education Puzzle in Bulgaria," LABOUR, CEIS, vol. 30(3), pages 347-367, September.
    4. Corbanese, Valli., 2011. "Supporting strategies to recover from the crisis in Croatia, the former Yugoslav Republic of Macedonia and Serbia : cross-country report," ILO Working Papers 994671463402676, International Labour Organization.

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    More about this item

    Keywords

    transition; human capital; wages; sheepskin effects; Czech Republic;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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