CEU eTD Collection (2018); Gábriel, Edina: Top Earnings Inequality and the Gender Wage Gap in Hungary

CEU Electronic Theses and Dissertations, 2018
Author Gábriel, Edina
Title Top Earnings Inequality and the Gender Wage Gap in Hungary
Summary This thesis analyzes the connection between the gender inequality among top earners and the overall gender pay gap in Hungary. I perform this analysis by dividing the earnings distribution into four mutually exclusive centile groupings in the following way: the bottom 90\%, next 9\%, next 0.9\% and top 0.1\%. Using these centile groupings I first analyze the female shares and actual annual earnings in each part of the distribution. Then, I build counterfactuals that control for the differences in gender shares in each of the four centile groupings, resulting in a simulated wage distribution that assumes the same share of women that the actual share of men is in each of the centile groupings. Then I use the Oaxaca-Blinder decomposition to learn how much part of the gender wage gap the centile groupings account for. Doing this, I find that the counterfactual earnings ratio -- unlike in other developed countries -- gives less favorable results for women in Hungary. Furthermore, it turns out that using the widest possible model, the inequality in Hungary is higher than the difference in earnings, thus having the centile groupings to explain more of the gap than the gap itself.
Supervisor Mátyás, László
Department Economics MA
Full texthttps://www.etd.ceu.edu/2018/gabriel_edina.pdf

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