The Russian-Ukrainian Earnings Divide

Amelie Constant (), Martin Kahanec and Klaus F. Zimmermann ()

No 627, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: Ethnic differences are often considered to be powerful sources of diverse economic behavior. In this paper, we investigate whether and how ethnicity affects Ukrainian labor market outcomes. Using micro data from the Ukrainian Longitudinal Monitoring Survey (ULMS) and Oaxaca-Blinder decomposition of earnings, we find a persistent and rising labor market divide between ethnic Russians and Ukrainians throughout Ukraine's transition era. We establish that language rather than nationality is the key factor behind this ethnic premium favoring Russians. Our findings further document that this premium is larger among males than among females.

Keywords: Ethnicity; earnings differences; discrimination; transitional labor markets; ethnic premium (search for similar items in EconPapers)
JEL-codes: J15 J70 J82 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cis, nep-ltv and nep-tra
Date: 2006
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Related works:
Working Paper: The Russian-Ukrainian Earnings Divide (2006)
Working Paper: The Russian-Ukrainian Earnings Divide (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:diw:diwwpp:dp627

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