1/2004 Tairi Rõõm. Search intensity and wage differences
Working Papers of Eesti Pank. No 1, 2004
Differences in job search behaviour have long been recognized in theoretical literature as a potential source of wage differentials. The aim of the current paper is to estimate whether there exists a systematic difference in search activity between genders and whether this can explain a part of the gender wage gap. These hypotheses are tested using micro-level data for the years 1998-2000 from the Estonian Labour Force Survey. The empirical model yields a result that unemployed men search more actively for new jobs than women. Controlling for the difference in search intensity significantly reduces the residual gender wage differential.
* I am grateful to Peter Ireland, Don Cox, Aurelijus Dabusinskas, and Marit Hinnosaar for helpful comments and suggestions.
Author's e-mail address: Tairi.Room [at] epbe.ee
The views expressed are those of the author and do not necessarily represent the official view of Eesti Pank.
- 1. Introduction
- 2. Development of the Gender Wage Gap during Transition
- 3. Why Might Men Search More Intensely for New Employment than Women?
- 4. Empirical Methodology
- 5. Data Description and Estimation Results
- 5.1. Data
- 5.2. First-Stage Estimation Results
- 5.3. Second-Stage Estimation Results
- 6. Conclusions
- Appendix 1. Model Variables
- 1.1. Different Search Methods Used in the Construction of the Search Activity Index
- 1.2. Regressors
- Appendix 2. Appendix 2. Sample Statistics and Empirical Estimates
Search Intensity and Wage Differences, Working Papers of Eesti Pank No 1, 2004 (PDF*)
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