Gender pay gap in the Czech republic − its evolution and main driversgender
Gender pay gap in the Czech republic − its evolution and main driversgender

Summary/Abstract: The study estimates the size of the gender pay gap (GPG) for the Czech Republicin the years 2006−2017 using data from the EU-SILC survey. The size of the GPG (andthe related variables) remains relatively time-invariant with a statistically weak relationto the business cycle. Using the Oaxaca-Blinder decomposition, we found out thatthe unexplained part of the GPG amounts to 50% of the whole GPG (on average) andonly one third of the GPG is caused by an endowment effect or an interaction betweenthe endowment effect and the coefficient effect. Selection bias plays a statisticallyinsignificant role in terms of the GPG formation and explanation. Parenthood is the mostimportant driver of the GPG. For parents, the GPG is about 30 percentage points higherthan the one for non-parents. Women are able to narrow the GPG created by the effectof motherhood and reach original unexplained levels of approximately 15% after reachingthe age of 50 and higher. Besides parenthood, there is no other demographic characteristicthat has any substantial impact on the formation and persistence of the GPG. The GPG ismost pronounced for the lowest- and the highest-earning quantiles, indicating the existenceof a glass ceiling and a sticky floor on the Czech labour market.

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