ETHNIC WAGE GAP AND POLITICAL BREAK-UPS: ESTONIA DURING POLITICAL AND ECONOMIC TRANSITION
Kristjan-Olari Leping and
Ott Toomet
No 53, University of Tartu - Faculty of Economics and Business Administration Working Paper Series from Faculty of Economics and Business Administration, University of Tartu (Estonia)
Abstract:
We analyse the ethnic wage gap in Estonia, a former Soviet republic and current EU member, which hosts a substantial Russianspeaking minority. The analysis covers a lengthy period from the final years of the Soviet Union until the first years of EU membership. We document the rise of a substantial wage gap among males in favour of the Estonian-speaking population. This result is robust with respect to controls for language skills, education, industry and occupation. The main factors causing the unexplained wage gap include different ethnicity-specific returns to education and working in the capital city. The gap for young and established workers is of equal size.We argue that the most plausible explanations are establishmentlevel segregation, possibly related to sorting and screening discrimination. Unobserved human capital, related to the segregated school system, may also play a certain role.
Keywords: wage decomposition; ethnicity; Estonia; former Soviet Union (search for similar items in EconPapers)
JEL-codes: J15 J31 J71 P23 P36 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2007
New Economics Papers: this item is included in nep-eec, nep-lab and nep-tra
References: Add references at CitEc
Citations: View citations in EconPapers (6)
Downloads: (external link)
https://mjtoimetised.ut.ee/febpdf/febawb53.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:mtk:febawb:53
Access Statistics for this paper
More papers in University of Tartu - Faculty of Economics and Business Administration Working Paper Series from Faculty of Economics and Business Administration, University of Tartu (Estonia) Contact information at EDIRC.
Bibliographic data for series maintained by Liis Roosaar (liis.roosaar@ut.ee).