What is it about?
We analyzed the ethnic wage gap in Estonia that hosts a large Russian-speaking minority population. We used the Oaxaca-Blinder decomposition to test whether the observed wage gap among the working population is related to commonly unobserved skills.
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Why is it important?
We conclude that the unexplained wage gap is most likely related to entry barriers, combined with low-level segregation and segregated social networks.
Perspectives
Our results indicate that the PIAAC direct human capital measures have only a moderate effect on the unexplained wage differential
Svetlana Ridala
TalTech
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This page is a summary of: Wage Gap in an Ethnically Segmented Labor Market: The Role of Cognitive Skills, Eastern European Economics, October 2018, Taylor & Francis,
DOI: 10.1080/00128775.2018.1524713.
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