Gender Pay Gap in Estonia: Empirical Analysis

An empirical study of gender pay gap and it's factors in Estonia.The results demonstrate that amongst the measurable variables i impacting the pay gap there is no one dominating factor that could be considered the main reason for the large gender pay gap in Estonia. The pay gap, rather, is formed due to the joint impact of many factors. It also became apparent that the largest part of the female and male wagedifferences cannot be explained by measurable factors. In other words, women’s andmen’s wages differ by more than could be presumed in the case of factors thatinfluence wages on the basis of sex differences, such as education, occupation andsector of activity. Regression analysis showed that the unexplained wage differenceforms approximately 85% of the general gender pay gap. In the period 2000–2008 both the general and the unexplained pay gap increased.

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