This paper examines the impact of occupational segregation changes on the development of the male-female wage gap within occupations in Germany between the years 1985 and 1995. The paper shows that changes in occupational segregation influence the wage gap in a rather complex way, depending on the gender composition and the employment growth of occupations. The core empirical result of the paper is that the movement of females into high wage/growth occupations makes migrating females better off but worsens the average male-female wage gap. More specifically, the paper shows that, amongst male dominated occupations and fast growing occupations, segregation reductions cause wage gap increases. The policy implication is that, in the case of male dominated occupations, segregation policies should be augmented by the simultaneous introduction of occupation related equal pay policies in order to combat within occupation wage gaps. The paper also shows that segregation changes have no impact on wage gap changes amongst integrated and female dominated occupations, as well as slow growth occupations. A different policy message arises for these occupations. First, combating segregation will not necessarily decrease the wage gap. Second, segregation should be taken into account when measuring the wage gap, but in a qualified way.
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Article provided by Editions du DULBEA, Université libre de Bruxelles, Department of Applied Economics (DULBEA) in its journal Cahiers Economiques de Bruxelles.