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Market Orientation and Gender Wage Gaps: an International Study

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  • Martina Zweimüller
  • Rudolf Winter-Ebmer
  • Doris Weichselbaumer

Abstract

More market orientation may reduce gender wage gaps via its effects on competition in product and labor markets and a generally lower level of regulation in the economy. On the other hand, less regulation and state intervention - which goes along with higher market orientation - may diminish the role of legislature and institutions that influence wage setting and may therefore increase gender wage differentials. In this paper, two very different approaches are used to test the relation between market orientation and gender wage differentials in international data. The first approach employs meta-analysis data and takes advantage of the fact that many studies already exist which use national data sources to the best possible extent. The second approach uses comparable micro data from the International Social Survey Programme (ISSP), which allows calculating internationally consistent gender wage residuals in the first place. By comparing these two very different methods of data collection we get the robust result that higher levels of market orientation as proxied by the Economic Freedom Index lead to lower gender wage gaps across countries and time periods. Copyright 2008 The Authors. Journal compilation 2008 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Kyklos.

Volume (Year): 61 (2008)
Issue (Month): 4 (November)
Pages: 615-635

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Handle: RePEc:bla:kyklos:v:61:y:2008:i:4:p:615-635

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Cited by:
  1. Nopo, Hugo & Daza, Nancy & Ramos, Johanna, 2011. "Gender Earnings Gaps in the World," IZA Discussion Papers 5736, Institute for the Study of Labor (IZA).
  2. Dorota Witkowska, 2013. "Gender Disparities in the Labor Market in the EU," International Advances in Economic Research, Springer, vol. 19(4), pages 331-354, November.
  3. Josef Montag, 2013. "Is Pro-Labor Law Pro-Women? Evidence from India," MENDELU Working Papers in Business and Economics 2013-40, Mendel University in Brno, Faculty of Business and Economics.
  4. Boris Hirsch & Michael Oberfichtner & Claus Schnabel, 2012. "Do women benefit from competitive markets? Product market competition and the gender pay gap in Germany," Economics Bulletin, AccessEcon, vol. 32(2), pages 1618-1624.
  5. Backiny-Yetna, Prospere & Wodon, Quentin, 2010. "Gender Labor Income Shares and Human Capital Investment in the Republic of Congo," MPRA Paper 27737, University Library of Munich, Germany.
  6. Parra Osorio, Juan Carlos & Wodon, Quentin, 2010. "Gender, Time Use, and Labor Income in Guinea: Micro and Macro Analyses," MPRA Paper 28465, University Library of Munich, Germany.

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