Can Differences in Characteristics Explain Ethnic Wage Gap in Latvia?

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...

Full description

Bibliographic Details
Main Authors: Vilerts Kārlis, Krasnopjorovs Oļegs
Format: Article
Language:English
Published: Sciendo 2017-04-01
Series:Economics and Business
Subjects:
Online Access:https://doi.org/10.1515/eb-2017-0001
_version_ 1797968483492823040
author Vilerts Kārlis
Krasnopjorovs Oļegs
author_facet Vilerts Kārlis
Krasnopjorovs Oļegs
author_sort Vilerts Kārlis
collection DOAJ
description 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.
first_indexed 2024-04-11T02:47:35Z
format Article
id doaj.art-604dbd9505e748208bac29a8aef2fca5
institution Directory Open Access Journal
issn 2256-0394
language English
last_indexed 2024-04-11T02:47:35Z
publishDate 2017-04-01
publisher Sciendo
record_format Article
series Economics and Business
spelling doaj.art-604dbd9505e748208bac29a8aef2fca52023-01-02T17:32:19ZengSciendoEconomics and Business2256-03942017-04-0130151510.1515/eb-2017-0001eb-2017-0001Can Differences in Characteristics Explain Ethnic Wage Gap in Latvia?Vilerts Kārlis0Krasnopjorovs Oļegs1University of Latvia, LatviaUniversity of Latvia, LatviaWe 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.https://doi.org/10.1515/eb-2017-0001discriminationethnic wage gapincome inequalityoaxaca-ransom decomposition
spellingShingle Vilerts Kārlis
Krasnopjorovs Oļegs
Can Differences in Characteristics Explain Ethnic Wage Gap in Latvia?
Economics and Business
discrimination
ethnic wage gap
income inequality
oaxaca-ransom decomposition
title Can Differences in Characteristics Explain Ethnic Wage Gap in Latvia?
title_full Can Differences in Characteristics Explain Ethnic Wage Gap in Latvia?
title_fullStr Can Differences in Characteristics Explain Ethnic Wage Gap in Latvia?
title_full_unstemmed Can Differences in Characteristics Explain Ethnic Wage Gap in Latvia?
title_short Can Differences in Characteristics Explain Ethnic Wage Gap in Latvia?
title_sort can differences in characteristics explain ethnic wage gap in latvia
topic discrimination
ethnic wage gap
income inequality
oaxaca-ransom decomposition
url https://doi.org/10.1515/eb-2017-0001
work_keys_str_mv AT vilertskarlis candifferencesincharacteristicsexplainethnicwagegapinlatvia
AT krasnopjorovsolegs candifferencesincharacteristicsexplainethnicwagegapinlatvia