scholarly journals Returns to Workplace Training for Male and Female Employees and Implications for the Gender Wage gap: A Quantile Regression Analysis

Author(s):  
Rossella Icardi

Context: Existing studies have explored the association between workplace training and wages suggesting that training participation may have a positive association with wages. However, we still know very little about whether this association varies between men and women. Through its potential positive association with wages, training may balance wage differences between men and women. In addition, the gender wage gap varies across the wage distribution. Differences in the association between training participation and wages for men and women across the earnings spectrum may offer an explanation as to why the discrepancy in female/male earnings is larger at some point of the wage distribution compared to others. Approach: Using data from the Programme for International Assessment of Adult Competencies (PIAAC) and unconditional quantile regression, this paper examines whether the association between workplace training and wages differs between men and women at different points of the wage distribution across 14 European countries. To partly control for endogeneity in training participation, detailed measures of cognitive skills have been included in the models. Findings: Findings show gender differences in the association between training and wages across the wage distribution. In most countries, results indicate larger training coefficients for women than men at the lower end of the wage spectrum whereas they are larger for men at the top. This pattern holds across most countries with the only exception of Liberal ones, where women benefit less than men across the entire wage spectrum.Conclusions: The findings of this work reveal that distributional variations in returns to workplace training follow a similar pattern across industrialized countries, despite their different institutional settings. Moreover, differences in training coefficients of men and women at different parts of the wage distribution suggest that training could reduce gender wage differences among low earners and potentially widen the gap in wages among individuals at the top of the wage distribution. 

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.


2015 ◽  
Vol 60 (04) ◽  
pp. 1550054 ◽  
Author(s):  
SIEW CHING GOY ◽  
GERAINT JOHNES

Semiparametric estimation has gained significant attention in the study of wage inequality between men and women in recent years. By extending the wage gap at the mean towards the entire wage distribution using quantile regression, it enables researchers to ascertain the direction and the proportions of differences in characteristics and returns to these characteristics at different parts of the wage distribution. This line of research has been prominent in western society but has not yet been explored in the context of the Malaysian labor market. To fill the gap, this paper examines the gender earnings gap in Malaysia between 1994 and 2004 using Malaysia Population and Family Survey data. The gender earnings differential, as measured by the log percentage point is 53% in 1994. The difference reduces to 45% for a restricted sample and 42% for the unrestricted sample in 2004. However, it was found that the gender wage gap reduces as we move up the wage distribution. This suggests that women suffer from a sticky floor effect, i.e., the gender wage gap is bigger at the bottom of distribution. More importantly, the observed gender wage differentials do not reflect differences in the productive characteristics of the workers. In fact, it accounts for very little, if any, of the gap in Malaysia. However, the extent of the price effect is larger at the bottom end of the distribution than at the top.


2018 ◽  
Vol 10 (1) ◽  
pp. 36
Author(s):  
Muhammad Shahadat Hossain Siddiquee ◽  
Md Amzad Hossain

Using the Labor Force Survey 2010 dataset this paper examines gender wage gap in a large sample of urban workers in Bangladesh and explore whether gender wage gap varies across the wage distribution. Mincerian OLS regression and its Blinder-Oaxaca decomposition results reveal that the estimated wage gap between men and women workers is 21.2%. Adjusting women’s endowments levels to those of men increases women’s wage by 12.1% and a gap of 8.0% remains unexplained. The decomposition results based on the unconditional quantile regressions demonstrate that the estimated total gender wage gap is higher at lower end of the wage distribution compared to the higher end.


2018 ◽  
Vol 25 (S01) ◽  
pp. 04-23
Author(s):  
Anh Trần Thị Tuấn

Inequality between men and women in the labor market is one of the issues that is of great interest in labor economics. The sticky floor effect occurs when the gender wage gap widens at the lower tail of the wage distribution. The glass ceiling effect in wage exists if the gender wage gap at the top of the wage distribution is wider than other positions. This study uses the dataset of VHLSS2014 and adopts quantile regression to investigate the existence of glass ceiling and sticky floor in the Vietnam’s labor market. The overall results obtained of the entire sample show that there is sticky floor effect but no glass ceiling in the Vietnam’s labor market. However, the results are different when it comes to each labor group. In terms of urban and rural areas, the sticky floor exists, but the glass ceiling does not in both areas. In terms of state and private sectors, while the glass ceiling exists in state sector, the stick floor is only present in the private sector.


2020 ◽  
pp. 109634802090942
Author(s):  
Xisco Oliver ◽  
Maria Sard

This article analyzes the gender wage gap in the hospitality sector. First, it explores whether the gender wage gap is partly explained by the economic sector. Second, it measures how this gap changes across the wage distribution using quantile regression. Third, it decomposes the gender wage gap in the hospitality sector to distinguish which part can be explained by observed attributes and which part is explained by other factors (unobserved characteristics or gender discrimination). Methodologically, this article introduces the use of quantile regression to the analysis of the gender wage gap and its decomposition in the hospitality sector. The main findings are as follows. First, on average in the hospitality sector, wages (without taking into account worker skills) are below the overall average wages. However, if a deeper look is taken, this research reveals that unskilled workers are better paid in hospitality than in most of the other sectors. The opposite is true for skilled workers, since mid- and high-wage workers in the hospitality sector receive wages below their counterparts in other sectors. Second, the gender wage gap is particularly low in the hospitality sector and the gap changes across the wage distribution. Third, a large part of the gender wage gap in hospitality is not explained by worker or company characteristics. The segregation of women into worse-paid jobs and gender discrimination (or unobserved characteristics) seem to be the main sources of the gender wage gap.


2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Ezgi Kaya

Abstract This paper studies the role of within- and between-firm effects on the gender wage gap (GWG). Using linked employer–employee data for Turkey for 2006 and 2014, we show that the wage gap among comparable men and women is much wider within establishments than between establishments. Our distributional analysis shows a more pronounced gap among highly paid workers, consistent with the presence of a glass-ceiling effect. This effect, however, is more apparent within establishments than between establishments, and it is the former that drives the economy-wide glass ceiling that women face. We also find that between 2006 and 2014, the GWG in Turkey widened at all points in the wage distribution, and that this widening was more pronounced within establishments than between establishments.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Dao Dinh Nguyen ◽  
Xinran Zhang ◽  
Trang Huyen Nguyen

PurposeThe objective of this study is to estimate the gender wage gap in Vietnam and its rural and urban areas, especially with the presence of foreign firms.Design/methodology/approachThe authors use cross-sectional data from three rounds of the Vietnam Household Living Standards Survey (VHLSS 2008, 2012, and 2016) to investigate this issue. The unconditional quantile regression and Oaxaca–Blinder (OB) decomposition are used in this article.FindingsThe article finds the gender wage gap favouring men, especially in higher quantiles of the wage distribution. The gap in urban Vietnam was higher than in rural areas. The OB decomposition indicates that gender wage gap is mainly driven by gender discrimination. The differences in return to participation in foreign companies only contributed significantly and positively to such a gap in some models. It suggests that the gap in those models is affected by gender discrimination in employment opportunities in foreign companies. Regarding the endowment effect, some models provide the significantly negative impacts of foreign firms on gender wage inequality.Originality/valueThe study suggests that policies to reduce the gender wage gap should pay more attention to foreign firms, especially at higher wage classes.


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.


2020 ◽  
pp. 135050682097902
Author(s):  
Patricia Moreno-Mencía ◽  
Ana Fernández-Sainz ◽  
Juan M. Rodríguez-Poo

Using microdata from the Wage Structure Survey, we analyse the gender wage gap in the private and public sectors, considering the whole wage distribution. The main contribution is to assume that the decision to work in a sector is a prior process determined endogenously in the model. Thus, the usual Ordinary Least Square estimation is inconsistent, and it is necessary to use alternative techniques. We use quantile regression techniques to calculate how much of the gap is due to differences in returns between men and women and sectors, taking into account the sample selection bias. We find that the size of the gap attributed to different returns varies substantially across the wage distribution. Public sector employees are paid higher wages, on average, than their counterparts in the private sector, and the gap is wider for women. Moreover, the proportion of the gender wage gap explained (by different characteristics) tends to be greater for workers who are at the bottom of the wage distribution in both sectors. A look at the whole wage distribution reveals that discrimination in the gender wage gap is typically higher at its top than at its bottom, suggesting that glass ceilings are more prevalent than sticky floors for both men and women.


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