Something in the way She Movcs: A Fresh Look at an Old Gap

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Something in the way She Movcs: A Fresh Look at an Old Gap

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A Manning
H Robinson

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Abstract

Most studies of the gender pay gap use cross-section earnings functions to apply a Oaxaca decomposition into the contributions of differences in characteristics and coefficients. But the accounts that these studies provide of the gender pay gap are often hard to relate to more informal stories told about the sources of women's disadvantage in the labour market. In this paper we show how one can use a minimal amount of panel data to decompose average earnings into the contribution of the average starting wage for workers entering paid work from non-employment, average wage growth for those in continuous employment and the fraction of workers entering employment. We use this decomposition to try to identify the source of the pay gap between men and women and the gap between full-time and part-time women using data drawn from the British Household Panel Survey. Comparing men and women we find no significant differences in wage growth whilst in continuous employment so that the source of the gender pay gap comes from the entrant pay gap and the share of entrants. Looking at longer-run changes suggests that we would expect to see a further narrowing of the gap. Comparing full- and part-time women there is no difference in entry pay shares and little difference in wage growth so that the bulk of the differential can be explained in terms of the fact that part-time women are much more likely to be entrants.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number 0389.

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Date of creation: May 1998
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Handle: RePEc:cep:cepdps:0389

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Article
- Alan Manning & Helen Robinson, 2004. "Something in the way she moves: a fresh look at an old gap," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 169-188, April. [Downloadable!] (restricted)

References listed on IDEAS
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repec:att:wimass:1919983 is not listed on IDEAS
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Other versions:
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Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Heitmueller, Axel & Inglis, Kirsty, 2004. "Carefree? Participation and Pay Differentials for Informal Carers in Britain," IZA Discussion Papers 1273, Institute for the Study of Labor (IZA). [Downloadable!]
Alan Manning & Joanna Swaffield, 2005. "The Gender Gap in Early Career Wage Growth," CEP Discussion Papers dp0700, Centre for Economic Performance, LSE. [Downloadable!]
Other versions:
- Alan Manning & Joanna Swaffield, 2008. "The gender gap in early-career wage growth," Economic Journal, Royal Economic Society, vol. 118(530), pages 983-1024, 07. [Downloadable!] (restricted)
Karen Mumford & Peter N Smith, . "The Gender Earnings Gap in Britain," Discussion Papers 04/05, Department of Economics, University of York. [Downloadable!]
Other versions:
- Mumford, Karen & Smith, Peter N., 2004. "The Gender Earnings Gap in Britain," IZA Discussion Papers 1109, Institute for the Study of Labor (IZA). [Downloadable!]
Karen Mumford & Peter N. Smith, 2007. "Assessing the Importance of Male and Female Part-Time Work for the Gender Earnings Gap in Britain," IZA Discussion Papers 2981, Institute for the Study of Labor (IZA). [Downloadable!]
Fitzenberger, Bernd & Wunderlich, Gaby, 2001. "The changing gender gap across the wage distribution in the UK," ZEW Discussion Papers 01-56, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
Giovanni Russo & Wolter Hassink, 2005. "The Part-Time Wage Penalty: a Career Perspective," Working Papers 05-01, Utrecht School of Economics. [Downloadable!]
Hirsch, Barry T., 2004. "Why Do Part-Time Workers Earn Less? The Role of Worker and Job Skills," IZA Discussion Papers 1261, Institute for the Study of Labor (IZA). [Downloadable!]
Other versions:
- Barry T. Hirsch, 2005. "Why do part-time workers earn less? The role of worker and job skills," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 58(4), pages 525-551, July.
Russo, Giovanni & Hassink, Wolter, 2005. "The Part-Time Wage Penalty: A Career Perspective," IZA Discussion Papers 1468, Institute for the Study of Labor (IZA). [Downloadable!]

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