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Market Orientation and Gender Wage Gaps: an International Study

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Author Info
Martina Zweimüller
Rudolf Winter-Ebmer
Doris Weichselbaumer

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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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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1467-6435.2008.00419.x
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Publisher Info
Article provided by Blackwell Publishing 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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  6. Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "Rhetoric in Economic Research: The Case of Gender Wage Differentials," IZA Discussion Papers 905, Institute for the Study of Labor (IZA). [Downloadable!]
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  8. Francine D. Blau & Lawrence M. Kahn, 2003. "Understanding International Differences in the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 106-144, January. [Downloadable!]
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  9. Berggren, Niclas, 1999. " Economic Freedom and Equality: Friends or Foes?," Public Choice, Springer, vol. 100(3-4), pages 203-23, September. [Downloadable!] (restricted)
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