Gender Wage Gaps Reconsidered: A Structural Approach Using Matched Employer-Employee Data
AbstractIn this paper I propose and estimate an equilibrium search model using matched employer-employee data to study the extent to which wage differentials between men and women can be explained by differences in productivity, disparities in friction patterns, segregation or wage discrimination. The availability of matched employer-employee data is essential to empirically disentangle differences in workers productivity across groups from differences in wage policies toward those groups. The model features rent splitting, on-the-job search and two-sided heterogeneity in productivity. It is estimated using German microdata. I find that female workers are less productive and more mobile than males. Female workers have on average slightly lower bargaining power than their male counterparts. The total gender wage gap is 42 percent. It turns out that most of the gap, 65 percent, is accounted for by differences in productivity, 17 percent of this gap is driven by segregation while differences in destruction rates explain 9 percent of the total wage-gap. Netting out differences in offer-arrival rates would increase the gap by 13 percent. Due to differences in wage setting, female workers receive wages 9 percent lower than male ones.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 116.
Length: 63 pages
Date of creation: 2009
Date of revision: 2010
labor market discrimination; search frictions; structural estimation; matched employer-employee data;
Find related papers by JEL classification:
- J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
- C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-10-03 (All new papers)
- NEP-BEC-2009-10-03 (Business Economics)
- NEP-LAB-2009-10-03 (Labour Economics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Rickne, Johanna, 2010.
"Gender, Wages and Social Security in China’s Industrial Sector,"
Working Paper Series
2010:8, Uppsala University, Department of Economics.
- Rickne, Johanna, 2010. "Gender, Wages and Social Security in China’s Industrial Sector," Working Paper Series, Center for Labor Studies 2010:6, Uppsala University, Department of Economics.
- Rickne, Johanna, 2010. "Gender, Wages, and Social Security in China’s Industrial Sector," Working Paper Series 827, Research Institute of Industrial Economics.
- Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010.
"Rising wage inequality, the decline of collective bargaining, and the gender wage gap,"
Elsevier, vol. 17(5), pages 835-847, October.
- Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," ZEW Discussion Papers 10-014, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising Wage Inequality, the Decline of Collective Bargaining, and the Gender Wage Gap," IZA Discussion Papers 4911, Institute for the Study of Labor (IZA).
- Panagiotis Nanos & Christian Schluter, 2013.
"The Composition of Wage Differentials between Migrants and Natives,"
1306.1781, arXiv.org, revised Oct 2013.
- Nanos, Panagiotis & Schluter, Christian, 2014. "The composition of wage differentials between migrants and natives," European Economic Review, Elsevier, vol. 65(C), pages 23-44.
- Bartolucci, Cristian & Devicienti, Francesco, 2013.
"Better Workers Move to Better Firms: A Simple Test to Identify Sorting,"
IZA Discussion Papers
7601, Institute for the Study of Labor (IZA).
- Francesco Devicienti & Cristian Bartolucci, 2013. "Better Workers Move to Better Firms: A Simple Test to Identify Sorting," 2013 Meeting Papers 249, Society for Economic Dynamics.
- Cristian Bartolucci & Francesco Devicienti, 2012. "Better Workers Move to Better Firms: A Simple Test to Identify Sorting," Carlo Alberto Notebooks 259, Collegio Carlo Alberto.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanni Bert).
If references are entirely missing, you can add them using this form.