Occupational Sex Segregation and Economic Inequality Under Socialism: Earnings Attainment and Earnings Decomposition in Yugoslavia

Abstract

An increase in scholarly attention to income differences between sex-typed occupations has generated a burgeoning literature. Typically-female occupations require preemployment education, not prolonged on-the-job training; receive less renumeration for work autonomy than male-typed occupations; and are concentrated in economically disadvantaged industrial sectors. However, these issues have received only preliminary consideration regarding noncapitalist societies and research has lacked an integrative, analytical focus. This study compares the earnings effects of education, type of work, and industrial sector between female- and male-dominated occupations in socialist Yugoslavia. As expected, average earnings are significantly higher in male than in female occupations. The results from the earnings regressions reveal a higher explained variance and larger economic returns to education among female- dominated occupations, especially in the managerial and professional strata. A decomposition of the earnings difference between sex-typed occupations suggests a variation in the source of inequality across skill strata. In the discussion, a comparison of capitalism and socialism reveals that while some aspects of the earnings attainment process may be unique to socialism, others are not.