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Sex Segregation and Wage Gaps in East and West Germany

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  • Stepan Jurajda
  • Heike Harmgart

Abstract

In this paper we examine occupational and firm-level sex segregation and their relationship with wages in West Germany and in East Germany, where anti- discrimination policies were recently implemented. We employ a representative sample of social-security wage records from 1992 and 1995, including a matched employer-employee sub-sample. We find large differences in the size of the wage gap, but not in the degree of segregation across the two parts of Germany. In contrast to U.S. literature German wages are not lower in predominantly female occupations. Conditioning on unobservable taste and labor quality differences, there is a small wage impact of sex segregation in both parts of Germany. Finally, by 1992 the East German wage structure appears as stable as that of West Germany.

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Paper provided by The Center for Economic Research and Graduate Education - Economic Institute, Prague in its series CERGE-EI Working Papers with number wp202.

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Date of creation: Nov 2002
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Handle: RePEc:cer:papers:wp202

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  1. Stepan Jurajda, 2000. "Gender Wage Gap and Segregation in Late Transition," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 306, William Davidson Institute at the University of Michigan.
  2. Holger Bonin & Rob Euwals, 2002. "Participation Behavior of East German Women after German Unification," 10th International Conference on Panel Data, Berlin, July 5-6, 2002, International Conferences on Panel Data D1-1, International Conferences on Panel Data.
  3. Joseph G. Altonji & Rebecca M. Blank, . "Race and Gender in the Labor Market," IPR working papers, Institute for Policy Resarch at Northwestern University 98-18, Institute for Policy Resarch at Northwestern University.
  4. Dean Jolliffe, 2001. "The Gender Wage Gap in Bulgaria: A Semiparametric Estimation of Discrimination," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 401, William Davidson Institute at the University of Michigan.
  5. Macpherson, David A & Hirsch, Barry T, 1995. "Wages and Gender Composition: Why Do Women's Jobs Pay Less?," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 13(3), pages 426-71, July.
  6. Erica L. Groshen, 1991. "The Structure of the Female/Male Wage Differential: Is It Who You Are, What You Do, or Where You Work?," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 457-472.
  7. Nathalie Greenan & Jacques Mairesse, 1999. "Using Employee Level Data in a Firm Level Econometric Study," CIRANO Working Papers, CIRANO 99s-12, CIRANO.
  8. Abowd, John M. & Kramarz, Francis, 1999. "The analysis of labor markets using matched employer-employee data," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 40, pages 2629-2710 Elsevier.
  9. Powell, James L., 1984. "Least absolute deviations estimation for the censored regression model," Journal of Econometrics, Elsevier, Elsevier, vol. 25(3), pages 303-325, July.
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  11. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  12. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, Elsevier, vol. 61(1), pages 5-21, March.
  13. Brixy, Udo & Kohaut, Susanne, 1999. " Employment Growth Determinants in New Firms in Eastern Germany," Small Business Economics, Springer, Springer, vol. 13(2), pages 155-70, September.
  14. Johnson, George & Solon, Gary, 1986. "Estimates of the Direct Effects of Comparable Worth Policy," American Economic Review, American Economic Association, American Economic Association, vol. 76(5), pages 1117-25, December.
  15. Constantin G. Ogloblin, 1999. "The Gender earnings differential in the Russian transition economy," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(4), pages 602-627, July.
  16. William T. Dickens & Brian A. Ross, 1984. "Consistent Estimation Using Data From More Than One Sample," NBER Technical Working Papers, National Bureau of Economic Research, Inc 0033, National Bureau of Economic Research, Inc.
  17. Elizabeth Brainerd, 2000. "Women in transition: Changes in gender wage differentials in Eastern Europe and the former Soviet Union," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(1), pages 138-162, October.
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Cited by:
  1. Tairi Rõõm, 2004. "Search Intensity and Wage Differences," Bank of Estonia Working Papers, Bank of Estonia 2004-1, Bank of Estonia, revised 12 Oct 2004.

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