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New Evidence on Gender Pay Differentials: Does Measurement Matter?

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  • Marie Drolet

Abstract

Data from the 1997 Survey of Labour and Income Dynamics are used to investigate the extent to which factors not previously explored in the Canadian context account for wage differences between men and women. Women's average hourly wage rate is about 82 percent - 89.5 percent of the men's average after controlling for a variety of productivity-related characteristics. Using standard decomposition techniques, gender differences in actual work experience explain 12 percent, differences in major field of study justify 5 percent and differences in job responsibility account for about 6 percent of the gender wage gap. Proxy measures for experience overstate women's labour-market experience and explain virtually none of the gender earnings differential. Despite the long list of productivity-related factors used in this study, a substantial portion of the gender wage gap cannot be explained.

Suggested Citation

  • Marie Drolet, 2002. "New Evidence on Gender Pay Differentials: Does Measurement Matter?," Canadian Public Policy, University of Toronto Press, vol. 28(1), pages 1-16, March.
    • Handle: RePEc:cpp:issued:v:28:y:2002:i:1:p:1-16
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    References listed on IDEAS

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    1. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-229, April.
    2. Michael P. Kidd & Michael Shannon, 1994. "An Update and Extension of the Canadian Evidence on Gender Wage Differentials," Canadian Journal of Economics, Canadian Economics Association, vol. 27(4), pages 918-938, November.
    3. 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 508-522, May.
    4. Mary Corcoran & Greg J. Duncan, 1979. "Work History, Labor Force Attachment, and Earnings Differences between the Races and Sexes," Journal of Human Resources, University of Wisconsin Press, vol. 14(1), pages 3-20.
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    Cited by:

    1. Casey Warman, 2007. "You Can Take It With You! The Returns To Foreign Human Capital Of Male Temporary Foreign Workers," Working Paper 1125, Economics Department, Queen's University.
    2. Nathalie Havet, 2006. "La valorisation salariale et professionnelle de la formation en entreprise diffère-t-elle selon le sexe ? L'exemple canadien," Économie et Prévision, Programme National Persée, vol. 175(4), pages 147-161.
    3. Tony Fang & John S. Heywood, 2010. "Immigration, Ethnic Wage Differentials and Output Pay in Canada," British Journal of Industrial Relations, London School of Economics, vol. 48(1), pages 109-130, March.
    4. Luiza Antonie & Miana Plesca & Jennifer Teng, 2016. "Heterogeneity in the Gender Wage Gap in Canada," Working Papers 1603, University of Guelph, Department of Economics and Finance.
    5. Michael Baker & Marie Drolet, 2010. "A New View of the Male/Female Pay Gap," Canadian Public Policy, University of Toronto Press, vol. 36(4), pages 429-464, December.
    6. Frenette, Marc, 2005. "Is Post-secondary Access More Equitable in Canada or the United States?," Analytical Studies Branch Research Paper Series 2005244e, Statistics Canada, Analytical Studies Branch.
    7. Nizalova, Olena Y. & Sliusarenko, Tamara & Shpak, Solomiya, 2016. "The motherhood wage penalty in times of transition," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 56-75.

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