Part Of Gender Wage Gap Research Articles

FACTORS OF THE GENDER WAGE GAP AT UKRAINIAN ENERGY ENTERPRISES

Abstract. Using the results of the sample survey, conducted among the energy companies during the fourth quartal of 2020 within the grant, provided by ESP USAID we have obtained new empirical evidence of size and factors of the gender wage gap in Ukrainian energetics and about spreading of that phenomenon among different professions groups. As the main factors, determining the size of wage were considered the educational level (four groups were identified), length of service in the company (five groups were identified), and respondent’s position / workplace in the company’s qualification hierarchy (eight groups were identified). The results obtained evidences, that leading factor in the gender pay gap in Ukrainian energetics is the unequal access of women and men to gaining the characteristics necessary for increasing wages. In particular, the disparity in the distribution of the total number of female and male respondents between the qualification levels (the average qualification level of women is 4.8 vs. 5.4 for men). Gender gap formation through unequal remuneration of labour of women and men who have similar characteristics of experience, qualifications and complexity of the work is localized in the lower qualification levels (from the 2nd to the 4th), and through inequality of access to high-paying work is manifested in the absence of women at the highest (8th) qualification level, a clear predominance of men at the 7th qualification level and a noticeable predominance at the third qualification level, which in terms of payment outscores both the 5th and 6th qualification levels. Accordingly, the leading factor in the gender pay gap is the predominance of men at the three highest paid qualification levels. Localization of differences in remuneration of similar characteristics of qualifications, experience and complexity of work at lower levels of the qualification hierarchy, as well as the weakening of such inequality as the experience of employees increases, indicates that the problem of gender inequality is more inherent in the segment of «peripheral» employment. As the skills and experience grow (respectively, the value of employees to employers), the problem of gender pay inequality becomes less noticeable. However, the number of women who reach a level in their career growth where gender pay inequality is almost not observed is less than the number of men. Keywords: gender wage gap, unexplained part of gender wage gap, professions groups, inequality of access to high-paying work, energetics. JEL Classification J26, J16 Formulas: 0; fig.: 3; tabl.: 1; bibl.: 15.

Gender Wage Gap

This paper was written as a part of a research project studying problem of wage determinant measuring and wage discrimination considering different wage requirements of men and women. The wage determinants and gender wage discrimination are analyzed using a probit model. The whole analysis is methodologically based on Mincer’s Wage Regression and Oaxaca-Blinder decomposition of gender wage gap. The wage variables include, aside from standard personal characteristics, dummies for institutional and firm characteristics and dummies for family status and family roles. The data were gained by a questionnaire survey carried out in Ostrava city. The results of the analysis, representative for the city, show statistically significant differences between wage determinants of men and women. The survey concluded in 2 statements: (1) family role is an important wage determinant and its inclusion to Mincer’s Wage Regression leads to better explanation of wages; and (2) including family characteristics in Oaxaca-Blinder decomposition can significantly reduce unexplained part of gender wage gap, i.e., a part of a wage difference usually ascribed to gender wage discrimination can be explained by different preferences of men and women on a labor market.