Interindustry Wage Differentials and the Gender Wage Gap

ILR Review ◽  
1995 ◽  
Vol 49 (1) ◽  
pp. 105-120 ◽  
Author(s):  
Judith Fields ◽  
Edward N. Wolff

Using data from the March 1988 Current Population Survey, the authors find that the wages of female workers differ significantly by industry, even when the analysis controls for workers' productivity-related characteristics. Although these interindustry wage differentials are at least as large as men's and are highly correlated with them as well, there are statistically significant differences between the two. Of the overall gender wage gap (the average female worker earns about 65% as much as the average male worker), 12–22% can be explained by differences between the patterns of interindustry wage differentials of men and women and 15–19% by differences in the distribution of male and female workers across industries. Thus, the combined industry effects explain about one-third of the overall gender wage gap.

2016 ◽  
Vol 42 (3) ◽  
pp. 442-467 ◽  
Author(s):  
Flurina Schmid

Abstracts This article analyzes the gender wage gap in Switzerland, using data from the Swiss Household Panel. The results show that women in Switzerland earn still less than men with the same endowments. One of the main reasons for this gap is occupational segregation: women and men working in femaledominated occupations have lower wages than those in integrated and male-dominated occupations. In order to have equally distributed job categories, 40% of the male or female employees would need to change jobs. But the “preferences” for jobs between genders seem to have been frozen for decades. The gender wage gap is particularly large within part-time employees working below 50%. Younger cohorts, however, seem less exposed to gender wage differentials.


Empirica ◽  
2020 ◽  
Author(s):  
René Böheim ◽  
Marian Fink ◽  
Christine Zulehner

Abstract We examine the gender wage gap in Austria from 2005 to 2017 using data from EU-SILC. The raw gap of hourly wages declined from 18.6 log points in 2005 to 14.9 log points in 2017. We use standard decomposition techniques that correct for differences in the distributions of human capital and other variables between men and women. Decompositions of the wage gap indicate that both the explained and the unexplained part of the gender wage gap decreased substantially over the last ten years. Using the approach developed by Neumark (J Hum Resour 22:279–295, 1988), the unexplained wage gap shrank from 8.7 log points in 2005 to 5.1 log points in 2017. The main reason for the decline in wage differences was the relative improvement of women’s observed and unobserved characteristics.


2021 ◽  
Vol 62 ◽  
pp. 5-31
Author(s):  
Sergey Roshchin ◽  
◽  
Natalya Yemelina ◽  

This study introduces a comparative analysis of the gender wage gap decomposition methods with the Russian Longitudinal Monitoring Survey (RLMS) data for 2018. To decompose the differences in average wages, approaches based on the Oaxaca–Blinder decomposition are used. Apart from the mean wages, the study focuses on other distribution statistics. Using the quantile regressions, the wage gap between men and women is decomposed for the distribution parameters such as median, lower and upper deciles. The decomposition estimates of conditional and unconditional (based on recentered influence functions) quantile regressions are compared.


2018 ◽  
Vol 46 (2) ◽  
pp. 111-148 ◽  
Author(s):  
Tanja Van der Lippe ◽  
Leonie Van Breeschoten ◽  
Margriet Van Hek

Many organizations in Europe offer work–life policies to enable men and women to combine work with family life. The authors argue that the availability of organizational work–life policies can also reduce gender inequality in wages. The authors test their expectations using the European Sustainable Workforce Survey, with data from 259 organizations and their employees in 9 European countries. Multilevel analyses show that organizations that offer work–life policies have a smaller gender wage gap. Their findings also suggest that both the type and number of policies matter. Contrary to their expectations, dependent care policies, such as parental leave and childcare support, are less important for the gender wage gap than flexibility policies. Controlling for organizational culture regarding family supportiveness does not alter the results.


2018 ◽  
Vol 39 (3) ◽  
pp. 378-397 ◽  
Author(s):  
Pawel Strawinski ◽  
Aleksandra Majchrowska ◽  
Paulina Broniatowska

Purpose The purpose of this paper is to analyse the relation between occupational segregation and the gender wage differences using data on three-digit occupational level of classification. The authors examine whether a statistically significant relation between the share of men in employment and the size of the unexplained part of the gender wage gap exists. Design/methodology/approach Traditional Oaxaca (1973) – Blinder (1973) decomposition is performed to examine the differences in the gender wage gaps among minor occupational groups. Two types of reweighted decomposition – based on the parametric estimate of the propensity score and non-parametric proposition presented by Barsky et al. (2002) – are used as the robustness check. The analysis is based on individual data available from Poland. Findings The results indicate no strong relation between occupational segregation and the size of unexplained differences in wages. The unexplained wage differences are the smallest in strongly female-dominated and mixed occupations; the highest are observed in male-dominated occupations. However, they are probably to a large extent the result of other, difficult to include in the econometric model, factors rather than the effects of wage discrimination: differences in the psychophysical conditions of men and women, cultural background, tradition or habits. The failure to take them into account may result in over-interpreting the unexplained parts as gender discrimination. Research limitations/implications The highest accuracy of the estimated gender wage gap is obtained for the occupational groups with a similar proportion of men and women in employment. In other male- or female-dominated groups, the size of the estimated gender wage gaps depends on the estimation method used. Practical implications The results suggest that decreasing the degree of segregation of men and women in different occupations could reduce the wage differences between them, as the wage discrimination in gender balanced occupations is the smallest. Originality/value To the best of the authors’ knowledge, this study is one of the few conducted at such a disaggregated level of occupations, and one of few studies focused on Central and Eastern European countries and the first one for Poland.


ILR Review ◽  
2003 ◽  
Vol 56 (4) ◽  
pp. 606-621 ◽  
Author(s):  
Lois Joy

Why do recent male college graduates earn more than their female counterparts? The author explores this question by estimating several salary regressions using data from the 1993–94 NCES Baccalaureate and Beyond Longitudinal Study. The results suggest that labor market variables outweighed academic variables in their contribution to the gender salary gap. Of the academic variables, gender differences in total credits accounted for more of the salary gap than did gender differences in majors, grades, or institution attended. Of the labor market variables, gender differences in job sector, industry, and hours worked had the largest effect on gender differences in salaries. Differences in how men and women searched for and selected first jobs appear to have had little impact on gender differences in salary. Most important, as much as 75% of the wage gap remains unexplained by both the academic and labor market variables.


2017 ◽  
Vol 60 (6) ◽  
pp. 1082-1096 ◽  
Author(s):  
Young-Mi Kim

This study examines the distinctive patterns of gender inequality in the primary and secondary labor markets in Korea. Previous studies that analyzed multiple disadvantages in the labor market tended to focus on comparing the gender wage gap between groups. By failing to distinguish the gender gap from discrimination, these studies often underestimate the severe within-job discrimination that women in minority positions experience. Using the wage gap decomposition method, this study analyzes the gender wage gap according to separate labor market positions. The results indicate that the size of the gender wage gap is greater in the primary labor market than in the secondary market, but that a sizable amount of the gap in the primary market can be explained by demographic differences between male and female workers. In the secondary labor market, the gender wage gap is relatively small, but mostly caused by within-job wage discrimination against women. The divergent pattern of gender inequality—large gap-small discrimination among organizational insiders and small gap-large discrimination between organizational outsiders—shows how the segmented labor market provides a structural condition to create the complexity of gender inequality, in which women experience different forms of disadvantage depending on their positions in the labor market.


2020 ◽  
pp. 1-20
Author(s):  
Miguel Ángel Mendoza González

This paper aims to analyze the hourly gender wage gap between men and women in Mexico for the period 2005-2020. To this end, a number of variables is selected to reflect workers' human capital, household circumstances and workplace characteristics; then, a novel non-parametric method decomposes wage differentials between men and women into its composition and structure effects throughout the distribution of labor income. Results are consistent with the sticky-floor hypothesis, where male workers earn higher hourly wages than female workers at low income levels. However, differentials decrease in the upper part of the distribution and may even reverse, favoring women over men at the highest income levels.


1999 ◽  
Vol 4 (1) ◽  
pp. 1-23
Author(s):  
Abid A. Burki

This paper investigates wage differentials between workers in subcontracting and non-subcontracting firms, using data from a recent survey of small manufacturing firms in Gujranwala, Pakistan. The paper finds that subcontracting workers receive a high wage premium and invokes efficiency wage arguments to explain this differential. The paper argues that due to a client/vendor monitoring problem it is optimal for subcontracting firms to pay higher than the market clearing wages. The use of Heckman's two stage procedure to test for sample selection bias fails to give such evidence. A decomposition of the wage differentials indicates that endowment differentials partly explain higher wages for subcontracting workers while the bulk of this wage gap is explained by differential returns to workers' attributes.


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