We analyse the magnitude and the causes of the low formal employment rate of the Roma
in Hungary between 1993 and 2007. The employment rate of the Roma dropped dramatically
around 1990. The ethnic employment gap has been around 40 percentage points for both
men and women and has remained remarkably stable. Differences in education are the
most important factor behind the gap, the number of children is important for female
employment and geographic differences play little role once education is controlled
for. Conditional on employment, the gap in log earnings is 0.3, and half of it is
explained by educational differences.