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From wage regulation to wage gap: how wage-setting institutions and structures shape the gender wage gap across three industries in 24 European countries and Germany

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  • Andrea Schäfer
  • Karin Gottschall

Abstract

Whilst a common and persisting feature of advanced market economies, the gender wage gap nevertheless varies across countries. Amongst the factors affecting this wage gap, industrial relations and industry differences still require further research. Using data from EU-SILC in 25 European countries, this article analyses how national wage-setting institutions impact wage differences between male and female full-time employees in three distinct industries. Complementing the country comparison is an in-depth study of the German case using data from the German Linked Employer-Employee Database, shedding light on the interaction of industry-specific wage-setting regulations and gender equity in living wages. Findings from the international comparison suggest a substantial gender wage gap for full-time employees across industries with specific country patterns. Country patterns seem to be due to the overall influence of trade unions and the relationship between pay bargaining strategies and specific minimum wage policies. The German case adds to these findings by analysing the impact of sectoral models of wage bargaining for industry-specific gender wage gaps, focussing on living wages for skilled full-time employees.

Suggested Citation

  • Andrea Schäfer & Karin Gottschall, 2015. "From wage regulation to wage gap: how wage-setting institutions and structures shape the gender wage gap across three industries in 24 European countries and Germany," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 39(2), pages 467-496.
    • Handle: RePEc:oup:cambje:v:39:y:2015:i:2:p:467-496.
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    2. repec:gdk:wpaper:51 is not listed on IDEAS
    3. David Brady & Thomas Biegert, 2017. "The Rise of Precarious Employment in Germany," SOEPpapers on Multidisciplinary Panel Data Research 936, DIW Berlin, The German Socio-Economic Panel (SOEP).
    4. Ines P. Murillo Huertas & Raul Ramos & Hipolito Simon, 2017. "Regional Differences in the Gender Wage Gap in Spain," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(3), pages 981-1008, December.
    5. repec:gdk:wpaper:53 is not listed on IDEAS
    6. Maitre, Bertrand & McGuinness, Seamus & Redmond, Paul, 2017. "A study of minimum wage employment in Ireland: The role of worker, household and job characteristics," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT332, June.
    7. repec:gdk:wpaper:54 is not listed on IDEAS
    8. Ji Young Kang, 2021. "Institutions and the gender wage gap: How production and welfare regime moderates the effect of family policy," International Journal of Social Welfare, John Wiley & Sons, vol. 30(1), pages 46-57, January.
    9. Eleonora Matteazzi & Stefani Scherer, 2021. "Gender Wage Gap and the Involvement of Partners in Household Work," Work, Employment & Society, British Sociological Association, vol. 35(3), pages 490-508, June.
    10. Aleksandra Parteka & Sabina Szymczak & Joanna Wolszczak-Derlacz, 2017. "Gender Wage Gap Convergence and Skills Heterogeneity in Poland (2005–2014) – Quantile Regression Analysis Based on Microdata from EU SILC," Collegium of Economic Analysis Annals, Warsaw School of Economics, Collegium of Economic Analysis, issue 47, pages 129-142.
    11. Katzkowicz, Sharon & Pedetti, Gabriela & Querejeta, Martina & Bergolo, Marcelo, 2021. "Low-skilled workers and the effects of minimum wage in a developing country: Evidence based on a density-discontinuity approach," World Development, Elsevier, vol. 139(C).
    12. José-Ignacio Antón & Rafael Grande & Rafael Muñoz de Bustillo & Fernando Pinto, 2023. "Gender Gaps in Working Conditions," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 166(1), pages 53-83, February.
    13. Sabina Szymczak & Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2022. "Position in global value chains and wages in Central and Eastern European countries," European Journal of Industrial Relations, , vol. 28(2), pages 211-230, June.
    14. Lara Minkus, 2019. "Labor Market Closure and the Stalling of the Gender Pay Gap," SOEPpapers on Multidisciplinary Panel Data Research 1049, DIW Berlin, The German Socio-Economic Panel (SOEP).
    15. Sylvia Walby, 2018. "Is Europe Cascading into Fascism? Addressing Key Concepts including Gender and Violence," Politics and Governance, Cogitatio Press, vol. 6(3), pages 67-77.
    16. MA, Xinxin & CHENG, Jie, 2023. "The Impact of Trade Unions on the Gender Wage Gap : Evidence from China," Discussion Paper Series 752, Institute of Economic Research, Hitotsubashi University.
    17. Feicht, Robert & Grimm, Veronika & Rau, Holger A. & Stephan, Gesine, 2017. "On the impact of quotas and decision rules in collective bargaining," European Economic Review, Elsevier, vol. 100(C), pages 175-192.
    18. David Brady & Thomas Biegert, 2017. "The Rise of Precarious Employment in Germany," LIS Working papers 708, LIS Cross-National Data Center in Luxembourg.

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