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The gap between male and female pay in the Spanish tourism industry

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Author Info
Fernando Munoz-Bullon ()

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Abstract

This paper analyzes wage differentials between male and female workers in the Spanish tourism industry, using a large, administratively matched employer-employee data set obtained from a representative sample of companies. This allows us to control for unobserved firm-specific factors likely to affect the magnitude of the gender wage gap. Our findings indicate that male workers earn on average 6.7% higher monthly wages than their socially comparable female counterparts. In particular, the type of contract held, the qualifications required for the job and the specific sub-sector of employment are very important variables in explaining this gender wage difference. We also find that only around 12% of the mean wage difference in the tourism industry cannot be explained by differences in observable characteristics, which is well below the average for the rest of the industries in Spain (87%). Our interpretation is that minimum wage legislation provides a particularly effective protection to women in the tourism industry, which is characterized by a large number of low-wage earners.

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Publisher Info
Paper provided by Universidad Carlos III, Departamento de Economía de la Empresa in its series Business Economics Working Papers with number wb085713.

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Date of creation: Nov 2008
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Handle: RePEc:cte:wbrepe:wb085713

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Related research
Keywords: Spanish tourism industry; Wage discrimination; Blinder-Oaxaca decomposition; Censored models;

Find related papers by JEL classification:
C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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References listed on IDEAS
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  1. Luís Delfim Santos & José Varejão, 2006. "Employment, Pay and Discrimination in the Tourism Industry," FEP Working Papers 205, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  2. Javier Gardeazabal & Arantza Ugidos, 2005. "Gender wage discrimination at quantiles," Journal of Population Economics, Springer, vol. 18(1), pages 165-179, 07. [Downloadable!] (restricted)
  3. Meng, Xin, 2004. "Gender earnings gap: the role of firm specific effects," Labour Economics, Elsevier, vol. 11(5), pages 555-573, October. [Downloadable!] (restricted)
  4. Sara Rica & Juan Dolado & Vanesa Llorens, 2008. "Ceilings or floors? Gender wage gaps by education in Spain," Journal of Population Economics, Springer, vol. 21(3), pages 777-778, July. [Downloadable!] (restricted)
    Other versions:
  5. Sara de la Rica & Arantza Ugidos, 1995. "¿Son las diferencias en capital humano determinantes en las diferencias salariales observadas entre hombres y mujeres?," Investigaciones Economicas, Fundación SEPI, vol. 19(3), pages 395-414, September. [Downloadable!]
  6. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2003. "A meta-analysis of the international gender wage gap," Economics working papers 2003-11, Department of Economics, Johannes Kepler University Linz, Austria. [Downloadable!]
    Other versions:
  7. Jacob Mincer & Solomon Polacheck, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 397-431 National Bureau of Economic Research, Inc. [Downloadable!]
  8. repec:bep:eapcon:v:5:y:2006:i:1:p:1498-1498 is not listed on IDEAS
  9. Juan Dolado & Florentino Felgueroso & Juan F. Jimeno, 2003. "Where do Women Work Analysing Patterns in Occupational Segregation by Gender?," Annales d'Economie et de Statistique, ADRES, issue 71-72, pages 13, Juillet-D. [Downloadable!]
  10. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S76-S108, Part II, . [Downloadable!] (restricted)
    Other versions:
  11. Elaine Sorensen, 1989. "Measuring the pay disparity between typically female occupations and other jobs: A bivariate selectivity approach," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 42(4), pages 624-639, July.
  12. Erica L. Groshen, 1987. "The structure of the female/male wage differential: is it who you are, what you do, or where you work?," Working Paper 8708, Federal Reserve Bank of Cleveland. [Downloadable!]
  13. Sara de la Rica & Juan J. Dolado & Vanessa LLorens, 2005. "Ceilings and Floors?: Gender Wage Gaps by Education in Spain," DFAEII Working Papers 200501, University of the Basque Country - Department of Foundations of Economic Analysis II, revised 16 Nov 2006. [Downloadable!]
    Other versions:
  14. Angel López-Nicolás & Jaume García & Pedro J. Hernández, 2001. "How wide is the gap? An investigation of gender wage differences using quantile regression," Empirical Economics, Springer, vol. 26(1), pages 149-167. [Downloadable!] (restricted)
    Other versions:
  15. Xin Meng & Dominique Meurs, 2004. "The gender earnings gap: effects of institutions and firms--a comparative study of French and Australian private firms," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 189-208, April. [Downloadable!] (restricted)
  16. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-79, November. [Downloadable!] (restricted)
  17. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9. [Downloadable!] (restricted)
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