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Juna Miluka June 10, 2008

Labor Markets and the Aftermath of Regime Change in Albania: Estimating Labor Market Discrimination. Juna Miluka June 10, 2008. Motivation. System Changes Major Transformations in the Labor Markets Lack of Empirical Evidence. Purpose. Estimate returns to schooling by gender

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Juna Miluka June 10, 2008

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  1. Labor Markets and the Aftermath of Regime Change in Albania: Estimating Labor Market Discrimination Juna Miluka June 10, 2008

  2. Motivation • System Changes • Major Transformations in the Labor Markets • Lack of Empirical Evidence

  3. Purpose • Estimate returns to schooling by gender • Mincer Equation • Estimate Gender Wage Gap • Gender Wage Gap Decomposition • Counterfactual Analysis

  4. Overview • Major Changes in Labor Markets • Price Liberalization • Competition • Lack of Social Support

  5. In 2004 employment level 38.3% for women and 60.1% for men.

  6. Men 2 times more in lawmaking, senior officials, leading executives Women higher as specialists and plain employees

  7. Data • 2005 ALSMS • 3680 households • 15,750 individuals • 5,746 individuals in the labor module • 3,898 individuals with reported wages

  8. Descriptive Statistics

  9. Empirical Strategy • Mincer’s Human Capital Equation (1974) • ln w = c + rS + b1E + b2E2 + e • Oaxaca (1973), Blinder (1973) • Raw Differential=E + C + U • E=differing endowments, C=differing coefficients, U=unexplained portion of differential, D=C+U • Lemieux (2002) • Counterfactual Analysis

  10. Results • Higher Return to Education for Women • No Differing Returns for Lower Educational Levels • Children have Negative Impact on Wages for Women • Evidence of Wage Discrimination Against Women

  11. Results Cont.

  12. Conclusions • Noticeable Wage Disparity • Labor Market Discrimination • Close Look to • Income Inequality, Education of the future generations , Occupational Distribution, Women’s Position and Opportunities, Intergenerational Inequality, and Ultimately Poverty. • Special Consideration to Education

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