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Glass Ceiling Effect and Earnings: The Gender Pay Gap in Managerial Positions in Germany

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Author Info

  • Elke Holst
  • Anne Busch

Abstract

Although there are a variety of studies on the gender pay gap, only a few relate to managerial positions. The present study attempts to fill this gap. Managers in private companies in Germany are a highly selective group of women and men, who differ only marginally in their human capital endowments. The Oaxaca/Blinder decomposition shows that the gender pay gap in the gross monthly salary can hardly be explained using the human capital approach. Adding variableson gender-specific labor market segregation and dimensions of the household and family to the model allows more than two-thirds of the gender pay gap to be explained. However, taking selection effects in a managerial position into account (Heckman correction), the proportion explained decreases to only one-third. This reveals the real extent to whichwomen are disadvantaged on the labor market. In addition, we observe not only that the wages in typical women's jobs are lower than in typical men's jobs but also that women are paid less than men in typical women's jobs. The two-thirds of the gender pay gap that remain unexplained represent the unobserved heterogeneity. This includes, for example, general societal and cultural conditions as well as structures and practices on the labor market and in companies that subject women to pay discrimination and pose an obstacle to them breaking the glass ceiling.

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Bibliographic Info

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 201.

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Length: 34 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp201

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Keywords: Gender pay gap; managerial positions; segregation; Oaxaca/Blinder decomposition; Heckman correction;

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References

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  1. Joni Hersch & Leslie S. Stratton, 2002. "Housework and Wages," Journal of Human Resources, University of Wisconsin Press, vol. 37(1), pages 217-229.
  2. Elke Holst & Anne-Katrin Stahn, 2007. "Zu wenige Frauen in Spitzenpositionen der großen Banken und Versicherungen," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 74(26), pages 405-407.
  3. Dohmen, Thomas & Falk, Armin & Huffman, David B. & Sunde, Uwe & Schupp, Jürgen & Wagner, Gert G., 2005. "Individual Risk Attitudes: New Evidence from a Large, Representative, Experimentally-Validated Survey," IZA Discussion Papers 1730, Institute for the Study of Labor (IZA).
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  6. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
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  8. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 75-99, Fall.
  9. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2005. "Is there a glass ceiling over Europe? Exploring the gender pay gap across the wages distribution," ISER Working Paper Series 2005-25, Institute for Social and Economic Research.
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  14. Elke Holst & Anne Busch, 2010. "Führungskräfte-Monitor 2010," DIW Berlin: Politikberatung kompakt, DIW Berlin, German Institute for Economic Research, volume 56, number pbk56, March.
  15. Hinz, Thomas & Gartner, Hermann, 2005. "Lohnunterschiede zwischen Frauen und Männern in Branchen, Berufen und Betrieben," IAB Discussion Paper 200504, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
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  22. Markus Gmuer, 2006. "The Gendered Stereotype of the ?Good Manager? Sex Role Expectations towards Male and Female Managers," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 17(2), pages 104-121.
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Citations

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Cited by:
  1. Eileen Trzcinski & Elke Holst, 2011. "A Critique and Reframing of Personality in Labour Market Theory: Locus of Control and Labour Market Outcomes," SOEPpapers on Multidisciplinary Panel Data Research 403, DIW Berlin, The German Socio-Economic Panel (SOEP).
  2. Barbara Liberda & Joanna Tyrowicz & Magdalena Smyk, 2013. "Age-productivity patterns in talent occupations for men and women: a decomposition," Working Papers 2013-27, Faculty of Economic Sciences, University of Warsaw.
  3. Anne Busch & Elke Holst, 2011. "Gender-Specific Occupational Segregation, Glass Ceiling Effects, and Earnings in Managerial Positions: Results of a Fixed Effects Model," Discussion Papers of DIW Berlin 1101, DIW Berlin, German Institute for Economic Research.
  4. Eileen Trzcinski & Elke Holst, 2010. "Gender Differences in Subjective Well-Being in and out of Management Positions," SOEPpapers on Multidisciplinary Panel Data Research 299, DIW Berlin, The German Socio-Economic Panel (SOEP).
  5. Eileen Trzcinski & Elke Holst, 2010. "Interrelationships among Locus of Control and Years in Management and Unemployment: Differences by Gender," SOEPpapers on Multidisciplinary Panel Data Research 266, DIW Berlin, The German Socio-Economic Panel (SOEP).
  6. Anna Ruzik & Magdalena Rokicka, 2010. "The Gender Pay Gap in Informal Employment in Poland," CASE Network Studies and Analyses 406, CASE-Center for Social and Economic Research.
  7. Nina Smith & Valdemar Smith & Mette Verne, 2011. "The gender pay gap in top corporate jobs in Denmark: Glass ceilings, sticky floors or both?," International Journal of Manpower, Emerald Group Publishing, vol. 32(2), pages 156-177, May.

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