Papers

Karolina Goraus, Joanna Tyrowicz
Gender Wage Gap in Poland – Can It Be Explained by Differences in Observable Characteristics?
published version | working paper

The raw gender wage gap over the period 1995-2012 amounts to app. 9% of hourly wage and is fairly stable. However, the raw gap does not account for differences in endowments between genders. In fact, the adjusted wage gap amounts to as much as 20% on average over the analyzed period and shows some cyclical properties. The estimates of adjusted gender wage gap do not seem to exhibit any long-term trends, which suggest that in general neither demographic changes nor the progressing transition underlie the phenomenon of unequal pay for the same work among men and women.


Karolina Goraus, Joanna Siwińska, Joanna Tyrowicz, Lucas van der Velde
Language and (the Estimates of) the Gender Wage Gap
published version | working paper

In this paper we link the estimates of the gender wage gap with the gender sensitivity of the language spoken in a given country. We find that nations with more gender neutral languages tend to be characterized by lower estimates of GWG. The results are robust to a number of sensitivity checks.


Lucas van der Velde, Joanna Tyrowicz, Karolina Goraus
Which gender wage gap estimates to trust? A comparative analysis using data from Poland
published version | working paper

Given the proliferation of methods to estimate gender wage gap, practical issues arise. The aim of this paper is to compare estimates of the adjusted wage gap from different methods and sets of conditioning variables. We apply available parametric and non-parametric methods to LFS data from Poland for 2012. While the raw gap amounts to nearly 10% of the female wage, after the correction for the endowments, the adjusted wage gap estimates range between 15% and as much as 25% depending on the method and the choice of conditional variables. The differences across methods and conditioning variables do not exceed 3pp. The largest differences emerged between methods estimating gap at the mean and those operating at quantiles. Within the same moment, methods which account for selection into employment yielded higher estimates of the adjusted wage gap. When expanding the conditioning set, to account for possible sorting of women into lower paid jobs, estimates of gap increase. While the actual point estimators of adjusted wage gap are slightly different, all of them are roughly twice as high as the raw gap, which corroborates the policy relevance of this methodological study.


Agnieszka Gwóźdź, Joanna Tyrowicz, Lucas van der Velde
Luki płacowe w kraju pochodzenia i w kraju docelowym na przykładzie kobiet imigrujących na amerykański rynek pracy
published version

Jedną z istotnych przesłanek decyzji migracyjnej są różnice w płacach na domowym i docelowym rynku pracy. Różnice te wynikać mogą jednak nie tylko z względnej różnicy w produktywności czy ew. zapotrzebowania na kapitał ludzki. Istotną przyczyną może być także nierówność płac, np. ze względu na płeć. Tymczasem ekonomia behawioralna i psychologiczna dają silne przesłanki, by oczekiwać, ze grupa dyskryminowana w krajach o większej skali nierówności płacowych może akceptować wyższe luki płacowe także na docelowym rynku pracy. Wykorzystując oszacowania nierówności płacowych ze względu na płeć w krajach pochodzenia imigrantek w Stanach Zjednoczonych oraz oszacowania luk płacowych na amerykańskim rynku pracy poddajemy empirycznej weryfikacji tezę, że wysokość luki płacowej imigrantek zależy od (skorygowanych) luk płacowych doświadczanych przez kobiety w kraju pochodzenia. Otrzymane wyniki wskazują na brak korelacji pomiędzy lukami płacowymi na rynku pracy w Stanach Zjednoczonych i w kraju pochodzenia.


Wojciech Hardy, Joanna Tyrowicz
Próba empirycznej weryfikacji hipotezy płac efektywnościowych w Polsce
published version

The efficiency wage hypothesis suggests that wages are higher than labor productivity in labor markets where workers may shirk. The paper presents an attempt to verify empirically prevalence of efficiency wages in Poland. We utilize Labor Force Survey data for the years 1995-2010. Our identification strategy relies on differences in residuals from the Mincer wage regression between movers (i.e. people changing jobs) and stayers (i.e. persons who did not change employment in the observational window). The results provide tentative confirmation to the prevalence of efficiency wages in Poland.


Anna Chojecka, Joanna Tyrowicz
Zmienne pominięte a luka płacowa kobiet – wnioski z analizy uwzględniającej wydajność
published version

Celem artykułu jest zmierzenie skali obciążenia oszacowań luki płacowej kobiet, w warunkach gdy wydajność nie jest obserwowalna. Korzystamy z unikatowych danych jednostkowych o wydajności i wynagrodzeniach dla 2 292 pracowników polskiej firmy zajmującej się handlem detalicznym w branży odzieżowej. Korzystamy z parametrycznych metod dekompozycji do oszacowania skorygowanej luki płacowej z uwzględnieniem i bez uwzględnienia miar wydajności. Wyniki wskazują, że obciążenie wynikające z pominięcia miar wydajności jest istotne statystycznie i wysokie w sensie ekonomicznym, w niektórych specyfikacjach zasadniczo zmieniając wnioskowanie o występowaniu nieuzasadnionej różnicy w wynagrodzeniach pomiędzy kobietami i mężczyznami. Większość oszacowań tzw. skorygowanej luki płacowej nie uwzględnia miar produktywności, głównie z uwagi na brak stosownych miar w dostępnych zbiorach. Choć nasze wyniki dotyczą tylko dla jednego przedsiębiorstwa, dają przesłanki by stwierdzić, że oszacowania, którymi posługuje się literatura, cechować może znaczne obciążenie.


Joanna Tyrowicz, Lucas van der Velde, Irene van Staveren
Identifying Age Penalty in Women’s Wages: New Method and Evidence from Germany
(early) working paper | revised working paper

Given theoretical premises, there is some ground to expect the gender wage gap adjusted for individual characteristics to be age specific. We rely on a long panel of data from the German Socio-Economic Panel covering the 1984-2008 period. We employ the DiNardo et al. (1996) technique to disentangle cohort and age effects. Our results indicate that the gender wage gap increases over the lifetime, but decreases with time. This finding runs contrary to the hypothesis that it is during the reproductive age that women’s wages relative to men’s wages suffer most. We suggest explanations for this pattern.


Katarzyna Bech, Joanna Tyrowicz
Estimating gender wage gap in the presence of efficiency wages — evidence from European data
(early) working paper

Gender wage gap (adjusted for individual characteristics) as a phenomenon means that women are paid unjustifiably less than men, i.e. below their productivity. Meanwhile, efficiency wages as a phenomenon mean that a group of workers is paid in excess of productivity. However, productivity is typically unobservable, hence it is proxied by some observable characteristics. If efficiency wages are effective only in selected occupations and/or industries, and these happen to be dominated by men, measures of adjusted gender wage gaps will confound (possibly) below productivity compensating of women with above productivity efficiency wage prevalence. We propose to utilize endogenous switching models to estimate adjusted gender wage gaps. We find that without correction for the prevalence of efficiency wages, the estimates of the adjusted gender wage gaps tend to be substantially inflated.


Joanna Tyrowicz, Lucas van der Velde, Karolina Goraus
How (Not) To Make Women Work? Evidence from Transition Countries
(early) working paper

Women in developed economies have experienced an unparalleled increase in employment rates, to the point that the gap with respect to men was cut in half. This positive trend has often been attributed to changes in the opportunity costs of working (e.g. access to caring facilities) and not-working (e.g. educational attainment). Meanwhile, the gender employment gaps were stagnant in transition economies. Admittedly, the employment equality among genders was initially much higher in this group of countries. We exploit this unique evidence from transition and advanced countries, to analyze the distributional nonlinearities in the relationship between the institutional environment and the (adjusted) gender employment gaps.

Our analysis compares the evolution of the adjusted gender employment gaps in transition and developed countries. We estimate the gender employment gap on nearly 1600 micro databases. We relate these estimates to changes in the opportunity costs of working and not-working. We find that the trends associated with institutional setting intensify along the distribution of gender employment gap, coinciding with the shift from transition to advanced economies. Changes in opportunity costs had a larger effect where the employment gap was larger, i.e. advanced economies. We provide some evidence that these results are not explained away by transition-based theories, and argue that the observed patterns reflect a level effect, which confirm with quantile approach. Hence, the existing instruments might not be sufficient to further reduce the gender employment gap.


Joanna Tyrowicz, Lucas van der Velde, Karolina Goraus
When the opportunity knocks: large structural shocks and gender wage gaps
(early) working paper

Undergoing a large structural shock, labor markets may become less inclusive. We test for this thesis analyzing the behavior of adjusted gender wage gaps in a wide selection of transition countries. We estimate comparable measures of adjusted gender wage gaps for a comprehensive selection of transition countries over a period spanning nearly three decades. We combine these estimates with measures of labor market reallocation in transition economies to uncover the relation between worker flows and the gender wage gap. Results indicate that in periods of reallocation, the adjusted wage gaps increase. Distinguishing between flows according to their contribution to structural transformation reveals the distinctive role paid by separations from the state-owned manufacturing sector, usually leading to greater adjusted gaps. The emerging new sectors in the economy tend to be more inclusive in the short run, associated with a lower adjusted gender gap. In the medium run, the adverse effect of greater separations from the old sector is even more pronounced, while the emergence of the new sector is less relevant.


Karolina Goraus, Joanna Tyrowicz, Lucas van der Velde
How to estimate gender wage gap to make a country look equal?
(early) working paper

Methods for estimating gender wage gap perform are roughly accurate, but the actual measure may depend on the interaction between (the weakness of) the method and (the weakness of) the labor market. We show that these effects may be large for a ranking of European countries. Our study provides two contributions. First, we show that the inherent features of a method may be useful in identifying the sources of inequality in a comparative perspective. For example, the ranking in the case of Germany depends substantially on whether or not the estimation controls for occupations and if it is the whole distribution or in particular low earners. These two observations suggest that relative to other countries Germany may be characterized by greater scope of gender occupational sorting and/or selection and that the problem concentrates in the lower quantiles of the earnings distribution. By contrast, in France there appears to be substantially less scope for occupational sorting / selection and the problem of gender wage inequality is fairly equally distributed along income deciles.


Karolina Goraus, Joanna Tyrowicz
The Goodwill Effect? Female Access to the Labor Market Over Transition: A Multicountry Analysis
working paper

This study evaluates quantitatively the context of gender gap in transition countries in terms of access to the labor market. Over economic transition female labor market participation has generally weakened. Notwithstanding, transition countries differ in institutional design, structural labor supply patterns, labor demand characteristics and the speed of transition processes. We propose to evaluate the contribution of these effects to the observed extent of gender differences in wages, and labor market status. Using estimators of gender gaps obtained from a panel of micro-datasets covering a possibly large set of transition countries, we seek determinants of cross-country variation in gender gaps in the labor market. Empirical evidence suggests that while countries with generally higher female labor force participation are characterized by lower gaps, ceteris paribus, this pattern does not hold for the transition countries.


Karolina Goraus, Magdalena Smyk, Lucas van der Velde
Women in transition and today: what do they want, realize, and experience in the labor market?
working paper

We investigate how women’s attitude and realization of choices towards equal participation in the labor market changes with age, and how these patterns differ between generations in transition and Western economies. As transition countries experienced a drop in employment rates regardless of gender, we study the relative change in the position of women, compared to similarly endowed men. We find that disentangling age, time, and cohort effects is necessary to appropriately assess women’s progress on labor markets in transition. The results indicate that in Western Europe countries women born later have much more equal position on the labor market as compared to older birth cohorts, but this is not the case in transition economies.