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How (Not) to Make Women Work? Evidence from Transition Countries

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We explore the reasons behind the fall of female employment rates in transition economies and compare them to the evolution in advanced economies. Using a large set of micro level databases, we find that the mechanisms that lead to an increasing female presence in the labor market (higher education and postponing marriage) do not seem to play a role in transition economies.

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How (Not) to Make Women Work? Evidence from Transition Countries

  1. 1. How (Not) to Make Women Work? How (Not) to Make Women Work? Evidence from Transition Countries Karolina Goraus Joanna Tyrowicz Lucas van der Velde Faculty of Economic Sciences University of Warsaw Gender and the Labour Market Workshop ICID, UCW and SITES Rome, 12 October 2016
  2. 2. How (Not) to Make Women Work? Outline 1 Motivation 2 Data 3 Results 4 Conclusions
  3. 3. How (Not) to Make Women Work? Motivation Motivation Literature emhasized substatial drop of women’s employment rates in the process of transition (Brainerd 2000, Hunt 2002, Blau and Kahn 2003) women men
  4. 4. How (Not) to Make Women Work? Motivation Questions What factors stand behind those changes in women’s employment rates? How the employment rates evolved for different cohorts/age groups? What was the evolution of (adjusted) gender gaps in employment rates? What was the role of the opportunity cost of working (increasing tertiary schooling attendance vs. decreasing access to child care facilities)?
  5. 5. How (Not) to Make Women Work? Data Varius sources of micro-level data National censuses (acquired from Integrated Public Use Microdata Series International) International Social Survey Program Living Standard Measurement Surveys of The World Bank National Labor Force Surveys European Union Labor Force Survey European Community Household Panel Life in Transition Survey
  6. 6. How (Not) to Make Women Work? Data Data on transition countries Country LFS EU LFS Census LSMS ISSP LiTS Albania 2002-2005 1989-2006 Armenia 2001 1989-2006 Azerbaijan 1995 1989-2006 Belarus 2008-2010 1999 1989-2006 Bosnia & Herz. 2001-2004 1989-2006 Bulgaria 1995-2012 2000-2012 1995-97, 2001-03 1993-1995 1989-2006 Croatia 1996-2012 1989-2006 Czech Republic 1998-2012 1993-1995 1989-2006 Estonia 1995-2012 1997-2012 1992-1995 1989-2006 FYR Macedonia 1989-2006 Georgia 1989-2006 Hungary 1997-2012 1990, 2001 1989-1995 1989-2006 Kazakhstan 1989-2006 Kyrgyzstan 1993, 1996-1998 1989-2006 Latvia 1998-2012 1995 1989-2006 Lithuania 1998-2012 1995 1989-2006 Moldova 1989-2006 Montenegro 1989-2006 Poland 1995-2012 1997-2012 1991-1995 1989-2006 Romania 1995-2012 1997-2012 1977, 1992, 2002 1989-2006 Russia 1991-1995 1989-2006 Serbia 2002-2004, 2007 1989-2006 Slovakia 1998-2012 1995 1989-2006 Slovenia 1996-2012 2002 1991-1995 1989-2006 Tajikistan 1999, 2003, 2009 1989-2006 Ukraine 1989-2006 Uzbekistan 1989-2006
  7. 7. How (Not) to Make Women Work? Data Data on benchmark countries Country EU LFS ECHP ISSP Austria 1995-2012 1995-2001 1989-1995 Belgium 1992-2012 1994-2001 Denmark 1992-2012 1994-2001 Finland 1995-2012 1996-2001 France 1993-2012 1994-2001 Germany 2002-2012 1994-2001 1989-1995 Greece 1992-2012 1994-2001 Ireland 1999-2012 1994-2001 1989-1995 Italy 1992-2012 1994-2001 1989-1995 Netherlands 1996-2012 1994-2001 Norway 1996-2012 1989-1995 Portugal 1992-2012 1994-2001 Spain 1992-2012 1994-2001 1993-1995 Sweden 1995-2012 1997-2001 1994-1995 Switzerland 1996-2012 UK 1992-2012 1994-2001
  8. 8. How (Not) to Make Women Work? Results Questions How the employment rates of women evolved? What factors stand behind those changes in women’s employment rates?
  9. 9. How (Not) to Make Women Work? Results Ratio of employment rates (women to men) increasing much less in transition countries Time effects estimates in regressions with country fixed effects Using OECD data Our replication
  10. 10. How (Not) to Make Women Work? Results Women’s employment rates by age Advanced economies Transition countries
  11. 11. How (Not) to Make Women Work? Results Women’s employment rates by age Transition countries - NMS Transition countries - other
  12. 12. How (Not) to Make Women Work? Results Decomposition of changes in female employment rate
  13. 13. How (Not) to Make Women Work? Results Questions What was the evolution of (adjusted) gender gaps in employment rates? What was the role of the opportunity cost of working (increasing tertiary schooling attendance vs. decreasing access to child care facilities)?
  14. 14. How (Not) to Make Women Work? Results Empirical analysis Two stages 1 Obtaining comparable measures of gender discrimination in employment rates (∆A) - ˜Nopo (2008) decompositions (one per country-year-source) 2 Using gender gap estimates as explained variables, whereas country-year characteristics as explanatory variables. Identify the correlates (better yet: determinants) of the stark differentials in measured ∆A.
  15. 15. How (Not) to Make Women Work? Results Research method Oaxaca (1973) and Blinder (1973) decomposition ¯yM − ¯yF = ˆβM (¯xM − ¯xF ) + (βM − βF )¯xF Decomposition of ˜Nopo δ = δM + δX + δA + δF δM - can be explained by differences between matched and unmatched males δX - can be explained by differences in the distribution of characteristics of males and females over the common support δA - unexplained part of the gap δF - can be explained by differences between matched and unmatched females
  16. 16. How (Not) to Make Women Work? Results Adjusted gender employment gap - time patterns Calendar years (1989=0) (1) (2) Transition country -0.6100*** (0.0708) Time -0.0322*** -0.0240*** (0.0092) (0.0039) x transition country 0.0525*** 0.0375*** (0.0103) (0.0047) Time2 0.0004 0.0002 (0.0003) (0.0001) x transition country -0.0012*** -0.0007*** (0.0004) (0.0002) Constant 1.0595*** 0.4504*** (0.1060) (0.0349) Country F.E. No Yes Observations 1,544 1,544 R-squared 0.184 0.758
  17. 17. How (Not) to Make Women Work? Results Time trend shapes
  18. 18. How (Not) to Make Women Work? Results Adjusted gender employment gap - institutional factors (1) (2) (3) (4) ln GDP per capita -0.26*** (0.04) x transition 0.41*** (0.03) Persons with tertiary -0.69*** in % of population (0.10) x transition 0.76*** (0.15) Women with tertiary -0.88*** in % tertiary (0.13) x transition 0.99*** (0.16) Constant 0.35*** 0.43*** 0.40*** 0.49*** (0.12) (0.04) (0.12) (0.13) Observations 1544 1441 1544 1544 R-squared 0.71 0.78 0.72 0.72
  19. 19. How (Not) to Make Women Work? Results Adjusted gender employment gap - institutional factors (5) (6) (7) (8) % of households with 0.18* small children (0.11) x transition -0.12 (0.16) Access to early childhood facilities x transition -0.02*** (0.004) % of children in kindergardens x transition -0.002** (0.001) Employment rate -1.53*** of women (0.08) x transition 0.77*** (0.10) Constant 0.27** 0.39*** 0.31*** 1.0*** (0.11) (0.06) (0.07) (0.11) Observations 931 424 441 1544 R-squared 0.77 0.82 0.83 0.79
  20. 20. How (Not) to Make Women Work? Conclusions Conclusions Employment rates evolution in transition countries - low explanatory power of unemployment rates, importance of ”entries” and ”exits” Adjusted gaps initially smaller in transition countries, but then stable Relation between gender gaps in employment and institutional factors less clear for transition countries
  21. 21. How (Not) to Make Women Work? Conclusions Thank you for your attention

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