scholarly journals Bargaining, Sorting, and the Gender Wage Gap: Quantifying the Impact of Firms on the Relative Pay of Women *

2015 ◽  
Vol 131 (2) ◽  
pp. 633-686 ◽  
Author(s):  
David Card ◽  
Ana Rute Cardoso ◽  
Patrick Kline

Abstract There is growing evidence that firm-specific pay premiums are an important source of wage inequality. These premiums will contribute to the gender wage gap if women are less likely to work at high-paying firms or if women negotiate (or are offered) worse wage bargains with their employers than men. Using longitudinal data on the hourly wages of Portuguese workers matched with income statement information for firms, we show that the wages of both men and women contain firm-specific premiums that are strongly correlated with simple measures of the potential bargaining surplus at each firm. We then show how the impact of these firm-specific pay differentials on the gender wage gap can be decomposed into a combination of sorting and bargaining effects. We find that women are less likely to work at firms that pay higher premiums to either gender, with sorting effects being most important for low- and middle-skilled workers. We also find that women receive only 90% of the firm-specific pay premiums earned by men. Importantly, we find the same gender gap in the responses of wages to changes in potential surplus over time. Taken together, the combination of sorting and bargaining effects explain about one-fifth of the cross-sectional gender wage gap in Portugal.

2021 ◽  
Vol 20 (2) ◽  
Author(s):  
Oscar Molina-Tejerina ◽  
Luis Castro-Peñarrieta

This document analyzes the gender wage gap between in tradable and non-tradable sectors. The tradable sector is defined by the value of exports and imports in an industry based on the four-digit codes of the International Standard Industrial Classification. Based on Gary Becker's work, in an economy prone to discrimination against women, the document proposes a model from which discrimination is possible if companies generate supra-normal profits. These benefits will be determined by market power, which in turn depends on the number of companies participating in the industry, so under the assumption that tradable sectors are directly influenced by international trade and with the possibility of greater competition, this competition will generate a trend towards normal benefits, making it impossible to finance discrimination against women, so the wage gender gap should be lower in tradable than non-tradable sectors. Using the traditional Oaxaca-Blinder decomposition and the Oaxaca-Blinder decomposition with Recentered Influence Function (RIF) regressions for the 2013 Household Survey, we find that unexplained wage differences against women are significantly lower in the tradable sector, suggesting that the impact of international trade on the tradable sector helps to reduce the gender wage gap in Bolivia.


2019 ◽  
Vol 36 (3) ◽  
pp. 429-441
Author(s):  
Nils Witte ◽  
Andreas Haupt

Abstract This article analyzes the relation of gender wage inequality to occupational licensing in Germany in 1993 and 2015. We show that the very particular German licensing system and strong gender segregation lead to an overrepresentation of women in licensed occupations. We further investigate, whether both genders benefit equally from licensing in terms of wages. Finally, we study whether both women’s overrepresentation and potential gender gaps within licensed occupations help to explain patterns in the overall gender wage gap. To this end, we distinguish licensed occupations in professions and semi-professions. We use 1993 and 2015 waves of the German Socio-Economic Panel Study to apply repeated cross-sectional regressions and decompositions. Our findings suggest that women benefited more from licensing in 1993 than in 2015. Men’s wage premiums seem to increase over time, but women’s premiums do not. We also show that semi-professions are less rewarding and women are overrepresented in these occupations. Finally, increased demand for licensed occupations is an important contribution to narrowing the gender wage gap. Women’s increased employment in licensed occupations alone would have reduced the overall gender wage gap by roughly 8 per cent.


2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Vincenzo Alfano ◽  
Lorenzo Cicatiello ◽  
Giuseppe Lucio Gaeta ◽  
Mauro Pinto

Abstract This paper contributes to the literature on the gender wage gap by empirically analyzing those workers who hold the highest possible educational qualification, i.e., a Ph.D. The analysis relies on recent Italian cross-sectional data collected through a survey on the employment conditions of Ph.D. holders. The Oaxaca–Blinder decomposition analysis and quantile decomposition analysis are carried out, and the selection of Ph.D. holders into employment and STEM/non-STEM fields of specialization is taken into account. Findings suggest that a gender gap in hourly wages exists among Ph.D. holders, with sizeable differences by sector of employment and field of specialization.


2009 ◽  
pp. 53
Author(s):  
Gilles Grenier ◽  
Akbar Tavakoli

This article compares Canada and the United States in terms of the evolution of the relative wages of production and non-production workers in the manufacturing sector. The results show that the wage ratio is affected by similar economic globalisation variables in each country. Other than technological changes, however, the overall effect of globalisation is more pronounced in Canada. Among economic globalisation variables, such as technological changes and imports from developing countries, the latter has had a less harmful effect on low-skilled workers in the United States than those in Canada. Among the other variables, the wage gap is more affected by union density in Canada. The impact of immigration is low in both countries.


Equilibrium ◽  
2013 ◽  
Vol 8 (3) ◽  
pp. 103-122
Author(s):  
Joanna Wolszczak-Derlacz

We propose an empirical analysis of testing the relationship between gender wage gap and economic growth. The study takes into account 12 manufacturing sectors in 18 OECD countries for the period between 1970 and 2005.We use industrial statistics (EU KLEMS, 2008) on female and male wages that distinguish between wages paid to different groups of workers classified according to skill level: high, medium and low. We estimate augmented production function where the malefemale wage differentials constitute a potential channel influencing growth (positively or negatively). Our research is motivated by the ambiguous results of previous empirical studies (e.g.: Seguiono 2000; Busse, Spielmann 2006; Seguino 2011; Schober, Winter-Ebmer 2011). Our main findings indicate that gender wage gap for high, medium and low-skilled workers is negatively correlated with sectoral growth. This results are confirmed in a number of robustness checks.


Author(s):  
Rebecca Cassells ◽  
Yogi Vidyattama ◽  
Riyana Miranti ◽  
Justine McNamara

2016 ◽  
Vol 23 (5) ◽  
pp. 1069-1075 ◽  
Author(s):  
Sylvain Petit

This study investigates the impact of the international openness in tourism services trade on wage inequality between highly skilled, semi-skilled, and unskilled workers in the tourism industry. The sample covers 10 developed countries and expands over 15 years. A cointegrated panel data model and an error correction model were used to distinguish between the short- and long-run effects. The results are compared to those of openness of business services and manufactured goods. The findings point out that tourism increases wage inequality at the expense of the least skilled workers in the long run and the short run.


2021 ◽  
Author(s):  
Kore Marc Antoine Guei

Abstract The paper assesses the impact of trade liberalization on the labour market by focusing on skill wage premium. The paper tests these effects by developing a monopolistic competition model with two factors of production characterized by their skill levels (skilled and unskilled labour). The paper finds that tariff’s level reductions cause a moderate increase in the wage gap. Thus, our analysis shows that a 10% decrease in tariffs is accompanied by a 16.1 % increase in the skill premium. Also, the same level of tariffs’ cut will on average increase the gender wage gap by 26.8%. The study implies that trade liberalization tends to benefit more workers in the skilled labour market compared to workers in the unskilled labour market.


2017 ◽  
Vol 26 (5) ◽  
pp. 469-476 ◽  
Author(s):  
Jenni Romaniuk ◽  
Samuel Wight ◽  
Margaret Faulkner

Purpose Brand awareness is a pivotal, but often neglected, aspect of consumer-based brand equity. This paper revisits brand awareness measures in the context of global brand management. Design/methodology/approach Drawing on the method of Laurent et al. (1995), this cross-sectional longitudinal study examines changes in brand awareness over time, with sample sizes of approximately 300 whisky consumers per wave in three countries: United Kingdom, Taiwan and Greece. Findings There is consistency in the underlying structure of awareness scores across countries, and over time, extending the work of Laurent et al. (1995). Results show that a relevant operationalisation of brand awareness needs to account for the history of the brand. Furthermore, the nature of the variation of brand awareness over time interacts with a brand’s market share. Research limitations/implications When modelling the impact of brand awareness researchers need to consider two factors – the brand’s market share and whether a more stable or volatile measure is sought. This avoids mis-specifying the country-level contribution of brand awareness. Practical implications Global brand managers should be wary of adopting a “one size fits all” approach. The choice of brand awareness measure depends on the brand’s market share, and the desire for higher sensitivity or stability. Originality/value The paper provides one of the few multi-country investigations into brand awareness that can help inform global brand management.


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