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Gender Wage Differentials in Italy: A Structural Estimation Approach

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  • Giovanni Sulis

Abstract

This paper studies gender wage differentials in Italy by providing a structural estimation of the frictional parameters of two different theoretical specifications of an equilibrium search model. I alternatively allow for firm heterogeneity and discrimination empirically using maximum likelihood and matching first moments in the data. Results indicate substantial differences in transition parameters with higher level of search frictions for women. The mapping from productivity to wages for men is highly non linear, with high productivity firms offering proportionally higher wages; for women, the relationships is almost linear. Including discrimination, I find that productivity accounts for 61% of the wage offer differential, search for 28% and 11% is the part of discrimination.

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Bibliographic Info

Paper provided by LABORatorio R. Revelli, Centre for Employment Studies in its series LABORatorio R. Revelli Working Papers Series with number 74.

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Date of creation: 2008
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Handle: RePEc:cca:wplabo:74

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Keywords: Gender Wage Differentials; Equilibrium Search; Discrimination; Structural Estimation; Italy.;

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  1. Geert Ridder & Gerard J. van den Berg, 2003. "Measuring Labor Market Frictions: A Cross-Country Comparison," Journal of the European Economic Association, MIT Press, MIT Press, vol. 1(1), pages 224-244, 03.
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  3. Eckstein, Zvi & van den Berg, Gerard J, 2004. "Empirical Labour Search: A Survey," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4199, C.E.P.R. Discussion Papers.
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  25. repec:dgr:uvatin:2098089 is not listed on IDEAS
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Citations

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Cited by:
  1. G. Sulis, 2007. "What Can Monopsony Explain of the Gender Wage Differential in Italy?," Working Paper CRENoS 200713, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  2. Caliendo, Marco & Lee, Wang-Sheng & Mahlstedt, Robert, 2014. "The Gender Wage Gap: Does a Gender Gap in Reservation Wages Play a Part?," IZA Discussion Papers 8305, Institute for the Study of Labor (IZA).
  3. I. Sulis & M. Porcu, 2008. "Assessing the Effectiveness of a Stochastic Regression Imputation Method for Ordered Categorical Data," Working Paper CRENoS 200804, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  4. Nicolai Suppa, 2012. "Job Characteristics and Subjective Well-Being in Australia – A Capability Approach Perspective," Ruhr Economic Papers, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen 0388, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
  5. M. Deidda & A. Di Liberto & M. Foddi & G. Sulis, 2012. "Employment Subsidies, Informal Economy and Women’s Transition into Work in a Depressed Area: Evidence from a Matching Approach," Working Paper CRENoS 201216, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  6. M. Pitzalis & I. Sulis & M. Porcu, 2008. "Differences of Cultural Capital among Students in Transition to University. Some First Survey Evidences," Working Paper CRENoS 200805, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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