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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. 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, vol. 14(3), pages 693-709, October.
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  6. Blau, Francine D & Kahn, Lawrence M, 1997. "Swimming Upstream: Trends in the Gender Wage Differential in 1980s," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 1-42, January.
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  11. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2004. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wages Distribution," IZA Discussion Papers 1373, Institute for the Study of Labor (IZA).
  12. Dohmen, Thomas J & Falk, Armin & Huffman, David & Schupp, Jürgen & Sunde, Uwe & Wagner, Gert Georg, 2006. "Individual Risk Attitudes: New Evidence from a Large, Representative, Experimentally-Validated Survey," CEPR Discussion Papers 5517, C.E.P.R. Discussion Papers.
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  19. Anne Busch & Elke Holst, 2009. "Berufswahl wichtig für Karrierechancen von Frauen und Männern," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 76(23), pages 376-384.
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  27. repec:ilo:ilowps:344117 is not listed on IDEAS
  28. Anne Busch & Elke Holst, 2008. "Gender Pay Gap Lower in Large Cities than in Rural Areas," Weekly Report, DIW Berlin, German Institute for Economic Research, vol. 4(6), pages 36-41.
  29. Anne Busch & Elke Holst, 2008. "Verdienstdifferenzen zwischen Frauen und Männern nur teilweise durch Strukturmerkmale zu erklären," DIW Wochenbericht, DIW Berlin, German Institute for Economic Research, vol. 75(15), pages 184-190.
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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," Discussion Papers of DIW Berlin 1157, DIW Berlin, German Institute for Economic Research.
  2. 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).
  3. 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.
  4. 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).
  5. 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.
  6. Smith, Nina & Smith, Valdemar & Verner, Mette, 2010. "The Gender Pay Gap in Top Corporate Jobs in Denmark: Glass Ceilings, Sticky Floors or Both?," IZA Discussion Papers 4848, Institute for the Study of Labor (IZA).
  7. 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.

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