When Do Gender Wage Differences Emerge? : A Study of Azerbaijan's Labor Market

When Do Gender Wage Differences Emerge? : A Study of Azerbaijan's Labor Market

Building on recent analyses that find a sizeable overall gender wage gap in Azerbaijan's workforce, this paper uses data on young workers in their early years in the labor market to understand how gender wage gaps evolve over time, if at all....

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Bibliographic Details
Main Authors:	Pastore, Francesco, Sattar, Sarosh, Sinha, Nistha, Tiongson, Erwin R.
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2016
Subjects:	UNION MEMBERSHIP CHILD HEALTH JOBS EMPLOYMENT IMMIGRANT HOUSEHOLD SIZE WORKFORCE WAGE GAP EMPLOYMENT OFFICES EMPLOYMENT SHARE INFORMAL SECTOR AGED WORKERS AGE GROUP LABOR FORCE DEVELOPING COUNTRIES DISCRIMINATION PREVIOUS DISCUSSION PUBLIC EMPLOYMENT EARLY MARRIAGES DEMOGRAPHIC FACTORS JOB DISSATISFACTION LABOR SURVEYS JOB ON-THE-JOB TRAINING PROGRAMS POLICY DISCUSSIONS PAYING JOBS FIRM SIZE CHILD BIRTH UNION MEMBERS TRAINING PROGRAMS PROMOTING GENDER EQUALITY PUBLIC EMPLOYMENT SERVICES WAGE GROWTH LABOR MARKET EXPERIENCE DRIVERS NATIONAL POPULATION JOB MATCHES WORK EXPERIENCE LABOR MARKET MATERNITY LEAVE GENDER GAP DISCRIMINATION AGAINST WOMEN TRAINING PRODUCTIVE SECTOR ON-THE-JOB TRAINING WORKER UNEMPLOYED MIGRATION AGE DISTRIBUTION VOCATIONAL EDUCATION MARRIAGE SOCIAL SECURITY JOB TRAINING LABOR PRIME AGE PRIMARY SCHOOL TOTAL EMPLOYMENT PLACE OF RESIDENCE JOB SEARCH TEENAGERS CHILD CARE RESPECT FEMALE LABOR PROGRESS UNEMPLOYMENT CHILD-BEARING HUMAN CAPITAL PREVIOUS ONE YOUNG MEN VOCATIONAL TRAINING INVESTMENT IN EDUCATION YOUNG AGE YOUNG ADULTS WORKERS BIG CITY YOUNG WORKERS POLICIES TRAINING TYPE GENDER DIFFERENCES YOUNG ADULT OLDER AGE GROUPS WOMAN POLICY RESEARCH WORKING PAPER WAGE INEQUALITY AVERAGE WAGE WAGE RATES SKILL LEVEL POLICY MAKERS SELF-EMPLOYED ACCOUNT PRODUCTIVE ACTIVITIES MALE COUNTERPARTS WAGE PREMIUM SELF-ESTEEM LABOR MARKET EXPERIENCES FAMILY FORMATION AGE GROUPS MATERNITY SERVICES INTERNATIONAL POLICY FAMILY INCOME OCCUPATION URBAN AREAS EMPLOYMENT SERVICES EMPLOYMENT SERVICE KIDS LABOR MARKET OUTCOMES LABOR RELATIONS PRIVATE SECTOR HOUSEHOLD CHARACTERISTICS EARNING MOTHER LABOR MARKET PERFORMANCE CHILDBEARING POLICY MANPOWER PRODUCTIVITY LEVEL GROSS WAGE ADULT WOMEN LEVEL OF EDUCATION PUBLIC EMPLOYMENT SERVICE JOB FAIRS RURAL AREAS NUMBER OF CHILDREN YOUNG WOMEN WAGE DIFFERENTIALS FIRST MARRIAGE POLICY IMPLICATIONS YOUNG PEOPLE POPULATION LABOR SUPPLY MARITAL STATUS MARRIED WOMEN POLICY RESEARCH PRIMARY EDUCATION GENDER DISCRIMINATION EDUCATIONAL LEVELS JOB SECURITY LABOUR SUPPLY WOMEN WAGE DISTRIBUTION LABOUR IMPORTANT POLICY EARLY MARRIAGE SECONDARY EDUCATION EDUCATIONAL LEVEL TERTIARY EDUCATION WAGE EMPLOYMENT TEENAGE WOMEN GENDER EQUALITY DEVELOPMENT POLICY EMPLOYEES
Online Access:	http://documents.worldbank.org/curated/en/2016/03/26099513/gender-wage-differences-emerge-study-azerbaijans-labor-market http://hdl.handle.net/10986/24155

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Summary:	Building on recent analyses that find a sizeable overall gender wage gap in Azerbaijan's workforce, this paper uses data on young workers in their early years in the labor market to understand how gender wage gaps evolve over time, if at all. The paper uses a unique database from a survey of young people ages 15–29 years. The analysis provides evidence that new labor market entrants begin with little or no gender differences in earnings, but a wage gap gradually emerges over time closer to the childbearing years. The gender wage gap grows from virtually zero, or even a small, positive gap in favor of women, until age 20 years, to about 20 percent two years later and even more than 30 percent at age 29 years. The gap in labor supply rises from almost zero to about 20 percent during the years from 19 to 22, while the gap in hours worked falls from positive (up to six hours per week more than their male counterparts) to negative (up to five hours per week less) over the same period in the life cycle. When decomposing the gap at different deciles of the wage distribution, it appears that most of it is at the lower and upper ends of the distribution, among young adults and prime-age workers. Selection of women into employment is strong and strongly skill-based: when controlling for sample selection bias, the gender gap becomes positive.