nep-tra New Economics Papers
on Transition Economics
Issue of 2014‒02‒02
23 papers chosen by
J. David Brown
IZA (Institute for the Study of Labor)

  1. Wage policies of a Russian firm and the financial crisis of 1998: Evidence from personnel data - 1997-2002 By Schaffer M.E.; Dohmen T.J.; Lehmann H.
  2. Issues for Renminbi Internationalization: An Overview By Eichengreen, Barry; Kawai, Masahiro
  3. Health care integration in the Russian federation: conceptual framework, evaluation, and new instruments By Igor Sheiman; Vladimir Shevski
  4. Wage and price dynamics in a large emerging economy: The case of China By Holz , Carsten A.; Mehrotra, Aaron
  5. Efficiency Cost of Fiscal Equalization: The Case of Belarus By Sebastian Eckardt; Jorge Martinez-Vazquez; Andrey Timofeev
  7. Chinese pension fund investment efficiency: Evidence from CNCSSF stock holdings By Lang, Gunnar; Shen, Yu; Xu, Xian
  8. Does growth generate jobs in Eastern Europe and Central Asia ? By Richter, Kaspar; Witkowski, Bartosz
  9. The People's Republic of China's Growth, Stability, and Use of International Reserves By Aizenman, Joshua; Jinjarak, Yothin; Marion, Nancy P.
  10. Measuring active aging for government policy planning: a case of Russia By Liudmila Zasimova; Maria Sheluntcova
  11. The political Kuznets curve for Russia: Income inequality, rent seeking regional elites and empirical determinants of protests during 2011/2012 By Hagemann, Harald; Kufenko, Vadim
  12. A Model of China's State Capitalism By Yong Wang; Xuewen Liu; Xi Li
  13. How much do the characteristics of independent directors and supervisory board members affect firm performance in China? By Xu, Hongmei
  14. Technology transfers, foreign investment and productivity spillovers: evidence from Vietnam By Carol Newman; John Rand; Theodore Talbot; Finn Tarp
  15. The criteria of copyrightability used in Russian judicial practice By Andrey V. Kashanin
  16. A Study of Pension System Efficiency In the Presence of Natural Resource Economy By Alexey Chernulich
  17. EU-Armenia trade liberalization:A poverty and social impact analysis By Mushegh Tumasyan; Karine Harutyunyan; Yelena Manukyan; Armen Grigorian
  18. The status of Framework Programmes Funding of the sustainable development of the Romanian energy sector By Irimie, Sabin Ioan; Timisan, Ionel Vasile
  19. Politically connected firms in Poland and their access to bank financing By Hasan, Iftekhar; Jackowicz, Krzysztof; Kowalewski , Oskar; Kozlowski , Lukasz
  20. Demand Forces of Technical Change Evidence from the Chinese Manufacturing Industry By Beerli, Andreas; Weiss, Franziska; Zilibotti, Fabrizio; Zweimüller, Josef
  21. Sustainable development of Romania through the structural funds By Irimie, Sabin Ioan; Munteanu, Rares
  22. Transfer Behaviour in Migrant Sending Communities - Evidence from Kyrgyzstan By Steiner, Susan; Chakraborty, Tanika; Mirkasimov, Bakhrom
  23. Salary and reservation wage gender gaps in Polish academia By Mariusz Kaszubowski; Joanna Wolszczak-Derlacz

  1. By: Schaffer M.E.; Dohmen T.J.; Lehmann H. (ROA)
    Abstract: We use a rich personnel data set from a Russian firm for the years 1997 to 2002 to analyze how the firm adjusts wages and employment during this period in which local labor market conditions changed in the aftermath of the financial crisis in 1998. We relate the development of turnover and wages for various employment categories to alternative models of wage and employment determination. We argue that the firms behavior is consistent with the predictions of efficiency wage models of the shirking and turnover type.
    Keywords: Labor Demand; Wage Level and Structure; Wage Differentials; Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population;
    JEL: J23 J31 P23
    Date: 2013
  2. By: Eichengreen, Barry (Asian Development Bank Institute); Kawai, Masahiro (Asian Development Bank Institute)
    Abstract: This paper provides an overview of the potential international role of the renminbi (RMB). Reviewing the current state, the paper finds that much progress has been made on RMB settlements for trade involving the People’s Republic of China (PRC) and on RMB-denominated bond issuance in Hong Kong, China, but that RMB internationalization is still limited due to capital account controls. It argues that a high degree of RMB internationalization requires significant capital account liberalization, which in turn would call for greater exchange rate flexibility so that the central bank can enjoy monetary policy autonomy. This, however, would pose a challenge for PRC authorities as hasty capital account liberalization could expose its financial markets to the risk of crisis. The paper also emphasizes the importance of institutional reforms to make the RMB a truly international reserve currency.
    Keywords: renminbi; yuan; international monetary policy; currency internationalization; foreign exchange; capital account liberalization; financial market
    JEL: F31 F32 F33 F41
    Date: 2014–01–21
  3. By: Igor Sheiman (National Research University Higher School of Economics); Vladimir Shevski (National Research University Higher School of Economics)
    Abstract: Fragmentation in organization and discontinuities in the provision of medical care are problems in all healthcare systems, whether it is the mixed public-private system in the USA, national health services in the UK, or insurance-based ones in Western Europe and Russia. In all of these countries, a major challenge is to improve integration in order to improve efficiency and health outcomes. This article assesses issues related to fragmentation and integration in conceptual terms and argues that key attributes of integration are teamwork, coordination, and continuity of care. It then presents a summary of integration problems in Russia and presents the results of a large survey of physicians concerning the attributes of integration. It is argued that the characteristics of the national service delivery model do not ensure integration. The Semashko model of service delivery, although designed as an integrated model, has been distorted under pressure of the process of specialization of care. It is also argued that larger organizational forms of service provision, like policlinics and integrated hospital-policlinics, do not have higher scores of integration indicators than smaller ones. Proposals to improve integration in Russia are presented with the focus on the regular evaluation of integration and fragmentation, regulation of integration activities, enhancing the role of PHC providers, and economic incentives
    Keywords: health policy, medical service integration, coordination of care, continuity of care, primary health care
    JEL: Z19
    Date: 2013
  4. By: Holz , Carsten A. (BOFIT); Mehrotra, Aaron (BOFIT)
    Abstract: This study finds that the growth in labour costs in China is not passed through fully to final prices in China, neither in the tradable goods sector nor in the economy as a whole. This probably reflects the strong pressure on profit margins from a highly competitive environment, especially in manufactured goods. The potential implications of labour cost increases in China for global inflation pressures are also discussed.
    Keywords: labour costs; inflation; China; global economic slack; globalisation
    JEL: E31 F42 J30
    Date: 2014–01–20
  5. By: Sebastian Eckardt (World Bank); Jorge Martinez-Vazquez (International Center for Public Policy. Andrew Young School of Policy Studies, Georgia State University); Andrey Timofeev (International Center for Public Policy. Andrew Young School of Policy Studies, Georgia State University)
    Abstract: Belarus is the last command economy left standing in Europe. Because it still has an option of a gradual transition ("Chinese style'"), the study of Belarus’ case can present insights on the counterfactual to the "shock therapy" approach undertaken by the rest of the Central and Eastern European countries. However, the viability of the existing system hinges on its ability to weather short-term external economic shocks and to adjust to a significant list of medium term structural challenges. Now that more than half of Belarus’ consolidated public expenditures, excluding social security, takes place at the subnational levels of government, its ability to adjust largely hinges on the incentives that the system of intergovernmental relations presents to subnational officials. Belarus' experience with the recent recurrent macro-economic turmoil suggests that the incentives embedded in the system of intergovernmental fiscal transfers might hinder its ability to undergo fiscal adjustment and consolidation. Thus, since 2008, Belarus underwent one of the largest contractions in the size of government in the region, with public expenditures contracting by 12.9 percentage points of GDP and finally dropping to 37 percent of GDP at the end of 2011 (Figure 1).
    Date: 2014–01–02
  6. By: Yongzheng Liu (School of Finance, China Financial Policy Research Center Renmin University of China); Jorge Martinez-Vazquez (International Center for Public Policy. Andrew Young School of Policy Studies, Georgia State University)
    Abstract: This paper aims to provide empirical evidence on the extent and possible channels of tax competition among provincial governments in China. Using a panel of provincial- level data for 1993-2007, we nd strong evidence of strategic tax interaction among provincial governments. Tax policy is approximated by average eective tax rates on foreign investment, taking into account the tax incentives available to foreign in- vestors. In line with the predictions of the theoretical tax competition literature, we also highlight the impact of each province's characteristics (including its size and level of industrialization) on the strategic interaction with its neighbors. Finally, the paper explicitly identies the establishment of development zones as an important conduit for tax competition among provinces. Tax competition; development zone; China
    Date: 2014–01–06
  7. By: Lang, Gunnar; Shen, Yu; Xu, Xian
    Abstract: China's pension system is facing a large gap of more than one trillion RMB. The investment efficiency of the social security fund therefore receives widespread attention in academic circles. We collected data of stocks held by the Chinese National Council for Social Security Fund (CNCSSF) from 2004 to 2012 to research the stocks' investment efficiency, distinguishing between direct investment by the CNCSSF and entrusted investment by fund companies. The results indicate that both components of the Chinese Social Security Fund investment have efficiency drawbacks. Direct investment by the CNCSSF does not obtain excess returns, while entrusted investment reaches an annual excess return of 4.32 percent because more private information is available to fund companies than to the CNCSSF during asset allocation. Further analyses of this paper find, however, that the Chinese Social Security Fund has a significant market-stabilizing effect, which is almost three times stronger than the market-stabilizing effect of entrusted investment. In general, entrusted investment performs better than direct investment with regard to investment efficiency, while direct investment performs better in terms of market stabilization. --
    Keywords: Pension fund investment,Performance evaluation,Chinese pension funds
    JEL: G11 G14 G23
    Date: 2014
  8. By: Richter, Kaspar; Witkowski, Bartosz
    Abstract: In Eastern Europe and Central Asia, the link from growth to jobs was tenuous in the first decade of the transition, giving rise to the notion of jobless growth. Yet, European countries suffered large job losses during the recent recession, suggesting that jobs and growth are closely entwined. This study takes a new look at this issue. It provides a cross-country analysis of the employment intensity of growth over the last decade and a half in Eastern Europe and Central Asia, which includes the 11 Central and Eastern European countries that joined the EU since 2004, the countries of former Yugoslavia, the Countries of Independent States and Turkey. The authors compare these findings with other regions in the world. The paper shows that the responsiveness of employment to output increased in the second decade of the transition. It also finds that in some instances employment growth increases with reforms of labor and product markets, stronger macroeconomic policy frameworks, better governance, and more economic integration and diversification.
    Keywords: Labor Markets,Labor Policies,Banks&Banking Reform,Markets and Market Access,Achieving Shared Growth
    Date: 2014–01–01
  9. By: Aizenman, Joshua (Asian Development Bank Institute); Jinjarak, Yothin (Asian Development Bank Institute); Marion, Nancy P. (Asian Development Bank Institute)
    Abstract: In the run-up to the financial crisis, the world economy was characterized by large and growing current account imbalances. Since the onset of the crisis, the People’s Republic of China and the United States have rebalanced. As a share of gross domestic product, their current account imbalances are now less than half their pre-crisis levels. For the People’s Republic of China, the reduction in its current account surplus post-crisis suggests a structural change. Panel regressions for a sample of almost 100 economies over the thirty-year period, 1983–2013, confirm that the relationship between current account balances and economic variables such as performance, structure, wealth, and the exchange rate, changed in important ways after the financial crisis.
    Keywords: current account imbalances; structural change; financial crisis; PRC; international reserves
    JEL: F32 O57
    Date: 2014–01–27
  10. By: Liudmila Zasimova (National Research University Higher School of Economics); Maria Sheluntcova (National Research University Higher School of Economics)
    Abstract: Rising life expectancy and an aging population highlight the need for appropriate government policies to transform of the role of the elderly from a dependent part of the population to an economically active one. This paper aims to measure active aging of the elderly in Russia. We review definitions of active aging and base our research on the concept of the World Health Organization. Active aging is characterized by three components: health, participation, and security. We select indicators for these components and aggregate them into three sub-indexes which become the outcome index of active aging. As a result, the sample is divided into two groups of elderly people in Russia, “actively aging” and “inactively aging”. The empirical research is based on the Study of Global Ageing and Adult Health (SAGE). Our findings show that 70% of the elderly population are at the intersection of “health” and “participation in social activities”; 61,2% between “health” and “security”; 73,5% between “security” and “participation in social activities”. Overall, 58,5% of Russian senior citizens meet all three criteria of active aging, thus creating a great challenge for policy response
    Keywords: active aging, public policy, the elderly, health, participation, security, Russia
    JEL: J14 J18
    Date: 2014
  11. By: Hagemann, Harald; Kufenko, Vadim
    Abstract: The goal of this paper is to apply the theory of the political Kuznets curve to Russia and reveal the key determinants of the probability of recent protests during 2011-2012 in the Russian regions. We apply the political Kuznets curve in the time and spatial dimensions, and find mixed evidence: throughout time, we observe an almost linear and positive relation between income and income distribution, whereas in the spatial dimension there exists an evidence of a concave curve. Empirical investigation of the role of income inequality using the latent variable framework allows us to outmanoeuvre certain measurement issues and state that conventional measures of income inequality, such as the Gini coefficient, may not be able to predict protests. Instead, we use the relation of the governors' family income to the average family income in the region, a proxy for rent-seeking of regional elites, which turns out to be a positive, significant and robust determinant of the protests. Applying additional controls ensures the robustness of the results and highlights the fact that democracy score and the economic factors are also significant. Mapping the distribution of the protests provides information on the clustering effect. --
    Keywords: political Kuznets curve,regional analysis,protests,logit,income inequality
    JEL: R11 C25 D63 D72
    Date: 2014–01
  12. By: Yong Wang (Hong Kong University of Science and Tech); Xuewen Liu (HKUST); Xi Li (HKUST)
    Abstract: This paper documents a hallmark feature of China’s state capitalism as the state controlling the economy in a vertical structure: State-owned enterprises (SOEs) monopolize key industries in the upstream, whereas the downstream industries are largely open to private competition. We develop a general-equilibrium model to show that this unique vertical structure, when combined with openness and labor abundance, is critical in explaining the puzzling fact that China’s SOEs outperformed non-SOEs in the past decade while the opposite was true in the 1990s. We show how the upstream SOEs extract rents from the liberalized downstream industries in the process of industrialization and globalization. The unprecedented prosperity of SOEs is shown to be an efficiency-undermining symptom of the incompleteness of market-oriented reforms rather than a proof of SOE superiority. Emergence, sustainability, redistributive effects, and general implications for other countries of this state capitalism are also discussed.
    Date: 2013
  13. By: Xu, Hongmei
    Abstract: This paper investigates and compares the characteristics of independent directors and supervisory board members in Chinese listed firms. The occupational backgrounds of independent directors and supervisory board members in listed firms are very different. Besides, different firms have different preferences in employing independent directors and supervisory board members according to their demands. Moreover, the empirical results show that characteristics of independent directors and supervisory board members have no clear relationship with firm performance. No matter their professional backgrounds or age, the independent directors and supervisory board members do not have the authority to affect the decision making process of management. Thus they cannot really contribute to firm performance. -- Die vorliegende Studie untersucht und vergleicht die Merkmale von unabhängigen Direktoren und Aufsichtsratsmitgliedern in börsennotierten chinesischen Unternehmen. Der berufliche Hintergrund der unabhängigen Vorstands- und Aufsichtsratsmitglieder in börsennotierten Unternehmen ist sehr verschieden. Verschiedene Unternehmen haben auch unterschiedliche Präferenzen bei der Beschäftigung von unabhängigen Direktoren und Aufsichtsratsmitgliedern je nach ihren Anforderungen. Außerdem zeigen die empirischen Ergebnisse, dass die Merkmale von unabhängigen Vorstands- und den Aufsichtsratsmitgliedern in keinem klarem Zusammenhang zum Unternehmenserfolg stehen. Unabhängig von ihrem professionellem Hintergrund und Alter haben weder die unabhängige Direktoren noch die Aufsichtsratsmitglieder ausreichenden Einfluss auf die Entscheidungsprozesse des Managements. Folglich können sie nicht wirklich zum Unternehmenserfolg beitragen.
    JEL: G30 G34 M51 O16 P31
    Date: 2013
  14. By: Carol Newman (Institute for International Integration Studies, Trinity College Dublin and Department of Economics, Trinity College Dublin); John Rand (Department of Food and Resource Economics, University of Copenhagen); Theodore Talbot (Department of Economics, University of Copenhagen); Finn Tarp (UNU-WIDER, Helsinki and Department of Economics, University of Copenhagen)
    Abstract: This paper provides new evidence on the relationship between foreign direct investment (FDI) and the productivity of domestic firms. Using a specially designed survey on a sample of over 7,500 manufacturing firms in Vietnam we uncover some of the mechanisms that explain productivity spillovers from FDI through vertical linkages along the supply chain. Our results suggest that domestic firms experience more productivity spillovers through forward linkages from foreign-input suppliers to domestic input users than through backward linkages from foreign customers to domestic producers of inputs. Productivity externalities from upstream sectors are associated with joint venture foreign investors while downstream sectors experience direct technology transfers from upstream wholly foreign owned investors. Spillovers from FDI through backward linkages are also detected but only when competition from imported intermediates is controlled for and are associated with innovations and technology investments made by firms.
    Keywords: Foreign direct investment, productivity spillovers, technology transfers, absorptive capacity, Vietnam
    JEL: D22 F21 O12 O3
  15. By: Andrey V. Kashanin (National Research University Higher School of Economics)
    Abstract: This article addresses the problem of identifying criteria for copyrightability and non-copyrightability in the Russian legal system, especially in judicial practice. An analysis of court rulings issued over the past few years warrant the conclusion that there is a trend towards setting looser standards of originality and creativity. The article also describes a trend in Russian judicial practice to grant copyright protection to works of low authorship and goes into problems and contradictions that this entails. It compares principles that evolved in Russian law with similar principles used abroad, mainly in Germany.
    Keywords: copyright, intellectual property, intellectual rights, personal non-property rights, exclusive rights, copyrightable work, copyrightability, works of low authorship, originality, creativity
    JEL: O34
    Date: 2014
  16. By: Alexey Chernulich (Department of Economics, European University at St. Petersburg)
    Abstract: In the face of changes in the demographic and economic situation, governments around the world are reviewing the existing models of pension provision with the prospect of reducing the share of the Pay-As-You-Go system and increasing the share the Fully Funded system. However, the country's specialization in natural resources can have an impact not only on economic development, but also on the functioning of the pension system, which makes research topic highly relevant for Russia. In this paper, a model of evaluating the effectiveness of both types of systems using historical macroeconomic data is presented. Calculations for different groups of countries show that in resource dependent countries Pay-As-You-Go system is relatively more effective than Fully Funded.
    Keywords: pension systems, resource dependent countries, pension reform, the profitability of pension investments
    JEL: H55
    Date: 2013–12–01
  17. By: Mushegh Tumasyan; Karine Harutyunyan; Yelena Manukyan; Armen Grigorian
    Abstract: This study set out to analyze the socioeconomic impact of increased trade liberalization between Armenia and the EU within the framework of Eastern Partnership initiative. In addition to a quantitative assessment of the potential impact of trade liberalization on the economic situation and poverty in Armenia, the study involves evaluations of existing foreign trade regimes and regulatory systems. Results of the analysis reveal that a simple free trade agreement or tariff liberalization will not result in significant socioeconomic benefits for Armenia. This is mainly caused by the already liberal trade regimes between Armenia and the EU. Armenia is already included in the Generalized System of Preferences in trade with the EU, yet the potential of this facility is not yet fully utilized. Armenia has relatively small and concentrated foreign exports which are limited by existent production capabilities and the current level of industrial development. Therefore, verification of a deep and comprehensive Free Trade Agreement (DCFTA) which implies harmonization of the partner countries’ trade- and production-related legislation with EU standards is not feasible in the medium term. Enforcement of such standards on the domestic market – i.e. on production and imports – could paralyze the Armenian economy and most likely result in negative social consequences. If initial institutional and legislative harmonization is the matter, no direct economic and social benefits are to be expected for Armenia, as no structural changes will occur in the ability of Armenian producers to enter the EU market and the Armenian private sector will continue to be in non-compliant with EU standards. To this end, regional economic integration of Armenia with the EU is of great importance to long-term development of the country. However, it will only be economically justifiable and generate a positive social impact if the process that leads to such integration is based on development and harmonization of the capacities of domestic producers and enterprises. Therefore, the policy priority should move away from trade liberalization towards industrial development.
    Keywords: Trade Liberalization; Free Trade Agreement; CGE; EU; Armenia; Poverty Analysis; Social Impact Analysis
    JEL: F15 F12 F16 I32 C68
    Date: 2013
  18. By: Irimie, Sabin Ioan; Timisan, Ionel Vasile
    Abstract: Currently, when the entire world faces and economic and financial crisis, the Romanian energy has mainly the following major problems: - Lack of a viable and sustainable energy strategy for long term; - Modernisation of the equipment and installations; - Liberalisation of the energy markets; - Interconnection of networks; - Ensuring the protections and the safety of the national energy system and of the afferent labour system. This paper highlights an opportunity that Romania has at its disposal through the funds of the main research funding instrument in the European Union to solve part of these problems and the way Romania has actually acted.
    Keywords: Sustainable development, the Seventh Framework Programme, Romanian energy sector
    JEL: O57 Q4 R5
    Date: 2012–02
  19. By: Hasan, Iftekhar (BOFIT); Jackowicz, Krzysztof (BOFIT); Kowalewski , Oskar (BOFIT); Kozlowski , Lukasz (BOFIT)
    Abstract: This study investigates the relationship between politically connected firms and their access to bank financing in a post-communist eras in Poland. Overall, it finds that “recent” political connections do influence access to bank financing and the value of such connections increased during the financial crisis. However, it also observes that the positive relationship mentioned above is substantially weaker in Poland relative to other emerging countries and we attribute this phenomenon to the instability of the Polish political climate.
    Keywords: political connections; bank financing; global financial crisis
    JEL: G10 G18 G32
    Date: 2014–01–09
  20. By: Beerli, Andreas; Weiss, Franziska; Zilibotti, Fabrizio; Zweimüller, Josef
    Abstract: This paper investigates the effect of market size on innovation activities across different durable good industries in the Chinese manufacturing sector. We use a potential market size measure driven only by changes in the Chinese income distribution which is exogenous to changes in prices and qualities of durable goods to instrument for actual future market size. Results indicate that an increase in market size by one percentage point leads to an increase of 4.4% in R&D inputs, an increase in labour productivity by 6.5% and an increase in the likelihood of a successful product innovation by about 1.1 percentage points. These findings are robust controlling for export behaviour of firms and supply side drivers of R&D. --
    JEL: L16 O31 O33
    Date: 2013
  21. By: Irimie, Sabin Ioan; Munteanu, Rares
    Abstract: The degree of EU funds absorption in Romania is not satisfactory. Nevertheless, there are two important aspects to be underlined. In the first place, the projects implemented generate results that are responsive to the objectives of the sustainable development. Then, every project, regardless of the programme, has also horizontal objectives, such as: sustainable development, equality of sexes etc. Thus, every project aims the respect for the environment and the social and economic development of the Romanian society. This paper presents a quantitative analysis of the national and operational programs that contributed to this goal.
    Keywords: sustainable development, structural funds, regional competitiveness
    JEL: R1
    Date: 2013–06
  22. By: Steiner, Susan; Chakraborty, Tanika; Mirkasimov, Bakhrom
    Abstract: Private transfers between households in developing countries have been extensively studied and shown to be economically important as mechanisms of risk sharing and income redistribution. We argue that migration and remittances have the potential to modify the prevalent transfer behaviour in migrant-sending communities. A priori, it is indeterminate whether migration and remittances strengthen or weaken the degree of private transfers. We use data from a detailed household survey in Kyrgyzstan, designed by the authors, to empirically study the effect of migration and remittances on both monetary and non-monetary transfers. We find that migrant households provide more monetary transfers and receive more non-monetary transfers compared with non-migrant households, particularly in rural areas. Furthermore, we find that the transfer of non-monetary help, in the form of labour, takes place only in the presence of labour constraints within the household. We argue that distinguishing between the nature of transfers, monetary or non-monetary, is important in the context of the vast literature investigating private transfer motives. --
    JEL: F22 O12 I30
    Date: 2013
  23. By: Mariusz Kaszubowski (Gdansk University of Technology, Gdansk, Poland); Joanna Wolszczak-Derlacz (Gdansk University of Technology, Gdansk, Poland)
    Abstract: By using unique web-survey data, this paper assesses the gender wage gap in Polish academia. We conduct a detailed study of the gender gap considering monthly salaries and reservation wages. The study involves regression analysis, Oaxaca-Blinder decomposition of mean wage differentials and decomposition of differences in distributions using quintile regression. The results from the Oaxaca-Blinder wage decomposition imply that differences in total salary are mostly due to academic rank. For reservation wages there is evidence of a mean residual gap of 10%. In addition, both differences in raw salary and the reservation wage between females and males are more pronounced at the top of the distribution.
    Keywords: gender wage gap, reservation wage, higher education
    JEL: J16 J31 J71
    Date: 2014–01

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