Does Market Liberalisation Reduce Gender Discrimination?
Econometric Evidence from Hungary, 1986—1998

with Dean Jolliffe

Published in Labour Economics 12 (1): 1-22, February 2005 (volume lead article)      ( PDF )

An alleged achievement of socialism was gender equality in the labour market. Has its collapse
shattered this accomplishment? The theoretical literature and attendant empirical evidence are
inconclusive. Using data for 2.9 million wage earners in Hungary we find that the male-female difference
in log wages declined from 0.31 to 0.19 between 1986 and 1998 and that this is largely explained
by a matching decline in “Oaxaca's discrimination,” suggesting extraordinary improvement of women’s
relative situation. Further, we find that variation over time in the wage gaps is associated with public and
large firms having progressively smaller gaps than their counterparts.

Download working paper:         CEPR DP

Great stuff             Link to Hungarian Labour Market Yearbooks
                               (a really great service from the Institute of Economics/HAS)


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