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

Author

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  • Pastore, Francesco

    (Università della Campania Luigi Vanvitelli)

  • Verashchagina, Alina

    (Marche Polytechnic University)

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.

Suggested Citation

  • Pastore, Francesco & Verashchagina, Alina, 2007. "When Does Transition Increase the Gender Wage Gap? An Application to Belarus," IZA Discussion Papers 2796, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp2796
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    References listed on IDEAS

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    Cited by:

    1. Jaanika Meriküll & Pille Mõtsmees, 2017. "Do you get what you ask? The gender gap in desired and realised wages," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(6), pages 893-908, September.
    2. Francesco Pastore, 2009. "School-to-Work Transitions in Mongolia," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 6(2), pages 245-264, December.
    3. Danijel Nestic, 2010. "The Gender Wage Gap in Croatia – Estimating the Impact of Differing Rewards by Means of Counterfactual Distributions," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 12(1), pages 83-119, April.
    4. Elizabeth Brainerd, 2010. "Human Development in Eastern Europe and the CIS Since 1990," Human Development Research Papers (2009 to present) HDRP-2010-16, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    5. Pastore, Francesco & Verashchagina, Alina, 2008. "The Determinants of Female Labour Supply in Belarus," IZA Discussion Papers 3457, Institute of Labor Economics (IZA).
    6. Francesco Pastore, 2010. "The gender gap in early career in Mongolia," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(2), pages 188-207, May.
    7. Maksim Yemelyanau & Aliaksandr Amialchuk & Mir Ali, 2012. "Evidence from the Chernobyl Nuclear Accident: The Effect on Health, Education, and Labor Market Outcomes in Belarus," Journal of Labor Research, Springer, vol. 33(1), pages 1-20, March.
    8. Tamar Khitarishvili, 2018. "Gender Pay Gaps in the Former Soviet Union: A Review of the Evidence," Economics Working Paper Archive wp_899, Levy Economics Institute.
    9. Tamar Khitarishvili, 2016. "Two tales of contraction: gender wage gap in Georgia before and after the 2008 crisis," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-28, December.
    10. Francesco Pastore & Sarosh Sattar & Erwin Tiongson, 2013. "Gender differences in earnings and labor supply in early career: evidence from Kosovo’s school-to-work transition survey," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-34, December.
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    12. Pastore, Francesco & Tenaglia, Simona, 2013. "Ora et non Labora? A Test of the Impact of Religion on Female Labor Supply," IZA Discussion Papers 7356, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    economic transition; evolution of the gender wage gap; decomposition analysis; wage inequality; Belarus;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • 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

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