Decomposing the Gender Wage Gap: The effect of firms, occupations and Job Stratification
AbstractThis paper presents new evidence on the role of segregation into firms, occupations within a firm and stratification into professional categories within firm-occupations in explaining the gender wage gap. I use a generalized earnings model that allows observed and unobserved group characteristics to have different impact on wages of men and women within the same group. The database is a large sample of individual wage data from the 1995 Spanish Wage Structure Survey. Results indicate that firm segregation in our sample accounts for around one-fifth of the raw gender wage gap. Occupational segregation within firms accounts for about one-third of the raw wage gap, and stratification into different professional categories within firms and occupations explains another one-third of it. The remaining one-fifth of the overall gap arises from better outcomes of men relative to women within professional categories. It is also found that rewards to both observable and unobservable skills, particularly those related to education, are higher for males than for females within the same group. Finally, mean wages in occupations or job categories with a higher fraction of female co-workers are lower, but the negative impact of femaleness in higher for women.
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Bibliographic InfoPaper provided by University of the Basque Country - Department of Foundations of Economic Analysis II in its series DFAEII Working Papers with number 2002-10.
Date of creation: Oct 2003
Date of revision:
Postal: Dpto. de Fundamentos del Análisis Económico II, = Facultad de CC. Económicas y Empresariales, Universidad del País Vasco, Avda. Lehendakari Aguirre 83, 48015 Bilbao, Spain
Find related papers by JEL classification:
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination
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- Card, David & de la Rica, Sara, 2004.
"The Effect of Firm-Level Contracts on the Structure of Wages: Evidence from Matched Employer-Employee Data,"
IZA Discussion Papers
1421, Institute for the Study of Labor (IZA).
- De la Rica Goiricelaya, Sara & Card, David E., 2004. "The effect of firm-level contracts on the structure of wages: evidence from matched employer-employee data," DFAEII Working Papers 2004-06, University of the Basque Country - Department of Foundations of Economic Analysis II.
- David Card & Sara de la Rica, 2005. "The Effect of Firm-Level Contracts on the Structure of Wages: Evidence from Matched Employer-Employee Data," NBER Working Papers 11829, National Bureau of Economic Research, Inc.
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