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An empirical analysis of the gender earnings gap between the public and private sectors in Korea: A comparative study with the US

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  • Cho, Donghun
  • Cho, Joonmo
  • Song, Bohwa
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    Abstract

    This paper conducts an empirical analysis of the gender earnings gap in the public and private sectors by comparing the cases in Korea with those in the US. Using comparable data sets by the Panel Study of Income Dynamics for the US and the Korean Income Panel Study for Korea, this study decomposes the gender earnings gap in order to identify the causal factors. One of the main factors attributable to a much lower gender earnings gap found in the Korean public sector is the self-selection by female workers with high levels of human capital who decide to enter the public sector. Another factor is the differing levels of efforts made by institutions, in areas such as wage structure, the enforcement of gender equality related laws, and the provision of paid family leave, which may affect differently the gender earnings gap in the public and private sector jobs. The empirical results of this study suggest that the differing levels of institutional efforts lower the gender earnings gap within the Korean public sector.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of the Japanese and International Economies.

    Volume (Year): 24 (2010)
    Issue (Month): 3 (September)
    Pages: 441-456

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    Handle: RePEc:eee:jjieco:v:24:y:2010:i:3:p:441-456

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    Web page: http://www.elsevier.com/locate/inca/622903

    Related research

    Keywords: Public and private sectors Gender earnings gap Human capital Institution;

    References

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    1. Javier Gardeazabal & Aratza Ugidos, . "More on identification in detailed wage decompositions," Studies on the Spanish Economy 140, FEDEA.
    2. Yun, Myeong-Su, 2003. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," IZA Discussion Papers 836, Institute for the Study of Labor (IZA).
    3. Pederson, P. J. & Schmidt-Sorensen, J. B. & Smith, N. & Westergard-Nielsen, N., 1990. "Wage differentials between the public and private sectors," Journal of Public Economics, Elsevier, vol. 41(1), pages 125-145, February.
    4. William A. Darity & Patrick L. Mason, 1998. "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 63-90, Spring.
    5. Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
    6. Yun, Myeong-Su, 2007. "Wage Differentials, Discrimination and Inequality: A Cautionary Note on the Juhn, Murphy and Pierce Decomposition Method," IZA Discussion Papers 2937, Institute for the Study of Labor (IZA).
    7. Smith, James P & Welch, Finis R, 1989. "Black Economic Progress after Myrdal," Journal of Economic Literature, American Economic Association, vol. 27(2), pages 519-64, June.
    8. M. C. Berger & P. Groothuis & P. Jeon, 1997. "The changing gender wage gap in Korea," Applied Economics Letters, Taylor & Francis Journals, vol. 4(9), pages 579-582.
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