CEU eTD Collection (2011); Springel, Katalin: Empirical Assessment of the Gender Wage Gap: An Application for East Germany During Transition (1990-1994)

CEU Electronic Theses and Dissertations, 2011
Author Springel, Katalin
Title Empirical Assessment of the Gender Wage Gap: An Application for East Germany During Transition (1990-1994)
Summary This thesis revolves around the estimation of the gender wage gap in East Germany during the transition from socialism to market economy (1990-1994). The analysis’ main goal is to provide evidence on the question of how the relative position of women changed by the introduction of market reforms. For this purpose I use different decomposition methods, starting with the Blinder-Oaxaca method and continuing with the extended version of it after assessing the issue of sample selection through applying Heckman’s two-step method. To overcome the limitations of the Blinder-Oaxaca method, I use the reweighting method of DiNardo, Fortin and Lemieux (1996) and Ñopo’s (2004) matching-based method. The main results of the thesis show that the large fall in the gender gap observed during the transition is almost solely due to the fall in the unexplained part of the gender gap. Results from Heckman’s correction procedure suggest that for female workers there exists substantial selection bias in the labor market which affects moderately the gender pay gap. Findings from using the DiNardo-Fortin-Lemieux reweighting method and Ñopo’s method indicate that the decrease in the gender gap is larger in relative terms for female workers at higher points of the distribution than at lower points.
Supervisor Earle, John Sutherland
Department Economics MA
Full texthttps://www.etd.ceu.edu/2011/springel_katalin.pdf

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