Understanding Wage Gaps in the Georgian Labour Market: Gender, Ethnicity, and Age

Ing. Sopio Undilashvili, BA

Master's thesis

Abstract:

This comprehensive study scrutinizes wage disparities in the Georgian labor market across gender, ethnicity, and age, utilizing data from the Labor Force Survey spanning 2003 to 2022, with a focused examination of 2019 pre-COVID-19, employing the Blinder-Oaxaca decomposition method. The analysis reveals a significant gender-related wage gap, where women, despite favorable individual characteristics, earn 27% less than men, largely due to occupational and sectoral segregation and shorter working hours. Notably, a portion of this gap remains unexplained, suggesting potential discrimination. Ethnic disparities exhibit a 17% wage gap, predominantly explained by differences in personal and job-related characteristics, hinting at possible pre-market discrimination affecting educational outcomes and, subsequently, earnings. Age-related analysis uncovers a 21% gap favoring older workers (aged 60 or above), with unexplained factors seemingly benefiting this demographic, contradicting common perceptions of productivity-related wage determination. This study's insights are vital for informing policies aimed at rectifying labor market inequalities and fostering a more inclusive economic environment in Georgia.

Keywords

Labour, wage gap, inequality, unemployment, gender, elderly people, Blinder-Oaxaca decomposition method

Language used: English

Date on which the thesis was submitted / produced: 6. 6. 2024

Thesis defence

• Date of defence: 6. 6. 2024
• Supervisor: doc. Ing. Irena Benešová, Ph.D.
• Reader: Hedvika Hánová, externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme:
Economics and Management