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Comparisons in Gender Wage Differentials and Discrimination between Germany and the United Kingdom

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  • Mick Brookes
  • Timothy Hinks
  • Duncan Watson

Abstract

Due to the lack of consistent data, direct and robust comparisons of cross‐country labour markets have been virtually impossible. This study uses a new panel data series that controls for inconsistencies, thus overcoming this problem. This study estimates gender wage differentials and gender discrimination in the German and UK labour markets. Panel estimates are used to identify general wage differences between the two countries, with cross‐sectional comparisons undertaken to identify changes that have occurred between 1991 and 1993, that are consistent with known labour market policies. It is found that gender wage differentials are greater in the UK than Germany with employer discrimination against females attributed with the majority of the difference in both countries. Copyright Fondazione Giacomo Brodolini and Blackwell Publishers Ltd 2001.

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Bibliographic Info

Article provided by CEIS in its journal Labour.

Volume (Year): 15 (2001)
Issue (Month): 3 (09)
Pages: 393-414

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Handle: RePEc:bla:labour:v:15:y:2001:i:3:p:393-414

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References

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  1. Wright, Robert E & Ermisch, John F, 1991. "Gender Discrimination in the British Labour Market: A Reassessment," Economic Journal, Royal Economic Society, vol. 101(406), pages 508-22, May.
  2. Lang, Kevin, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 363-82, May.
  3. Robin Naylor, 1994. "Pay discrimination and imperfect competition in the labor market," Journal of Economics, Springer, vol. 60(2), pages 177-188, June.
  4. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  5. Black, B & Trainor, M & Spencer, J E, 1999. "Wage Protection Systems, Segregation and Gender Pay Inequalities: West Germany, the Netherlands and Great Britain," Cambridge Journal of Economics, Oxford University Press, vol. 23(4), pages 449-64, July.
  6. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
  7. Dolton, P J & Makepeace, G H, 1986. "Sample Selection and Male-Female Earnings Differentials in the Graduate Labour Market," Oxford Economic Papers, Oxford University Press, vol. 38(2), pages 317-41, July.
  8. Goldberg, Matthew S, 1982. "Discrimination, Nepotism, and Long-Run Wage Differentials," The Quarterly Journal of Economics, MIT Press, vol. 97(2), pages 307-19, May.
  9. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
  10. Hinks, T. & Watson, D., 1999. "A Multinominal Logit No-Discrimatory Approach to Estimating Racial Wage and Occupational Discrimation," Papers 67, Middlesex University - School of Economics.
  11. Chiplin, Brian & Sloane, P J, 1976. "Personal Characteristics and Sex Differentials in Professional Employment," Economic Journal, Royal Economic Society, vol. 86(344), pages 729-45, December.
  12. Knut Gerlach, 1987. "A Note on Male-Female Wage Differences in West Germany," Journal of Human Resources, University of Wisconsin Press, vol. 22(4), pages 584-592.
  13. Polachek,Solomon W. & Siebert,W. Stanley, 1993. "The Economics of Earnings," Cambridge Books, Cambridge University Press, number 9780521367288, December.
  14. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  15. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
  16. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162.
  17. Ashenfelter, Orley & Layard, Richard, 1983. "Incomes Policy and Wage Differentials," Economica, London School of Economics and Political Science, vol. 50(198), pages 127-43, May.
  18. Miller, Paul W, 1987. "The Wage Effect of the Occupational Segregation of Women in Britain," Economic Journal, Royal Economic Society, vol. 97(388), pages 885-96, December.
  19. Greenhalgh, Christine A, 1980. "Male-Female Wage Differentials in Great Britain: Is Marriage an Equal Opportunity?," Economic Journal, Royal Economic Society, vol. 90(363), pages 751-75, December.
  20. Susan Harkness, 1996. "The gender earnings gap: evidence from the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 17(2), pages 1-36, May.
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Citations

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Cited by:
  1. Uwe Jirjahn, 2011. "Gender, Worker Representation and the Profitability of Firms in Germany," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 8(2), pages 281-298, December.
  2. Uwe Jirjahn & Gesine Stephan, 2004. "Gender, piece rates and wages: evidence from matched employer--employee data," Cambridge Journal of Economics, Oxford University Press, vol. 28(5), pages 683-704, September.
  3. Brookes, Michael, 2001. "Gender Earnings Mobility: A Comparison of Relative Mobility in Germany and the UK," IRISS Working Paper Series 2001-02, IRISS at CEPS/INSTEAD.
  4. Peter Dawson & Timothy Hinks & Duncan Watson, 2001. "German Wage Underpayment: An Investigation into Labor Market Inefficiency and Discrimination," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(1), pages 107-114.

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