6533b862fe1ef96bd12c620b
RESEARCH PRODUCT
Can Differences in Characteristics Explain Ethnic Wage Gap in Latvia?
Karlis VilertsOļegs Krasnopjorovssubject
Labour economicsOccupational groupHF5001-6182Higher educationmedia_common.quotation_subjectOaxaca-Ransom decompositionWageEthnic groupDistribution (economics)DecileEconomic inequalityDiscrimination0502 economics and businessEconomicsoaxaca-ransom decompositionBusiness050207 economicsHB71-74media_commonbusiness.industry05 social sciences050209 industrial relationsLatvianlanguage.human_languageEconomics as a sciencelanguageethnic wage gapbusinessdiscriminationincome inequalitydescription
Abstract We used anonymized micro data from Labour Force Survey to estimate the ethnic wage gap in Latvia and find the factors that explain it. We found that a notable ethnic wage gap still exists in Latvia with non-Latvians earning 10 % less than Latvians in 2015. The results of Oaxaca-Ransom decomposition show that approximately two thirds of the ethnic wage gap are explained by differences in characteristics with the most important effects in favour of Latvians caused by segregation in better paying occupational groups, having Latvian citizenship and better education (higher education levels and more favourable segregation by education fields). This was partly offset by favourable segregation in sectors for non-Latvians. Quantile regressions show that ethnic wage gap is statistically significant in all deciles of wage distribution.
year | journal | country | edition | language |
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2017-04-01 | Economics and Business |