Working Paper: CEPR ID: DP5904
Authors: Amelie Constant; Martin Kahanec; Klaus F. Zimmermann
Abstract: Ethnic differences are often considered to be powerful sources of diverse economic behaviour. In this paper, we investigate whether and how ethnicity affects Ukrainian labour market outcomes. Using micro data from the Ukrainian Longitudinal Monitoring Survey (ULMS) and Oaxaca-Blinder decomposition of earnings, we find a persistent and rising labour market divide between ethnic Russians and Ukrainians throughout Ukraine?s transition era. We establish that language rather than nationality is the key factor behind this ethnic premium favouring Russians. Our findings further document that this premium is larger among males than among females.
Keywords: discrimination; earnings differences; ethnic premium; ethnicity; transitional labor markets
JEL Codes: J15; J70; J82
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Ethnicity (J15) | Labor Market Outcomes (J48) |
| Language (Y20) | Labor Market Outcomes (J48) |
| Ethnicity (J15) | Earnings Differentials (J31) |
| Language (Y20) | Earnings Differentials (J31) |
| Observable Characteristics (C90) | Earnings Differentials (J31) |
| Earnings Differentials (J31) | Labor Market Performance (J48) |