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Gender Differences in Managerial Compensation - Evidences from Denmark

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Author Info

  • Lausten, Mette

    ()
    (Institute of Local Government Studies,)

Abstract

This paper examines the gender earnings gap at the executive level on a unique data set of Danish executives in the period 1992-1995. Ordinary wage equations show that the wage gap disappears when controlling for “Who you are”, “Where you work” and “What you do”. Additionally, decomposition into inter- and intra-occupational differences shows that two thirds of the wage gap are due to differences between occupations. Individual-specific characteristics contribute negatively to the wage gap, i.e. in favour of women. Decomposing by real authority level shows a larger unexplained part of the wage gap. Real authority is more discriminating than formal authority.

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File URL: http://www.hha.dk/nat/WPER/01-4_ml.pdf
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Bibliographic Info

Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 01-4.

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Length: 27 pages
Date of creation: 01 Jan 2001
Date of revision:
Handle: RePEc:hhs:aareco:2001_004

Contact details of provider:
Postal: The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark
Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx
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Related research

Keywords: Managerial compensation; Gender wage gap; Corporate governance;

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References

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  1. Marianne Bertrand & Kevin Hallock, 1999. "The Gender Gap in Top Corporate Jobs," Working Papers 805, Princeton University, Department of Economics, Industrial Relations Section..
  2. Gubta, Nabanita Datta & Rothstein, Donna S., 2001. "The Impact of Worker and Establishment-level Characteristics on Male-Female Wage Differentials: Evidence from Danish Matched Employee-Employer Data," CLS Working Papers 01-9, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
  3. Miller, Paul W, 1987. "The Wage Effect of the Occupational Segregation of Women in Britain," Economic Journal, Royal Economic Society, vol. 97(388), pages 885-96, December.
  4. Philippe Aghion & Jean Tirole, 1994. "Normal and Real Authority in Organizations," Working papers 94-13, Massachusetts Institute of Technology (MIT), Department of Economics.
  5. Kenneth R Troske & Kimberly N Bayard & Judith Hellerstein & David Neumark, 1998. "New Evidence On Sex Segregation And Sex Differences In Wages From Matched Employee-Employer Data," Working Papers 98-18, Center for Economic Studies, U.S. Census Bureau.
  6. Murphy, Kevin J., 1999. "Executive compensation," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 38, pages 2485-2563 Elsevier.
  7. Lausten, M., 1998. "CEO Turnover, Firm Performance and Corporate Governance," Papers 98-10, Aarhus School of Business - Department of Economics.
  8. Sherwin Rosen, 1990. "Contracts and the Market for Executives," NBER Working Papers 3542, National Bureau of Economic Research, Inc.
  9. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," NBER Working Papers 7732, National Bureau of Economic Research, Inc.
  10. Erikson, T. & Lausten, M., 1997. "Managerial Pay and Firm Performance: Danish Evidence," Papers 97-11, Aarhus School of Business - Department of Economics.
  11. Eriksson, Tor & Lausten, Mette, 2000. "Managerial pay and firm performance -- Danish evidence," Scandinavian Journal of Management, Elsevier, vol. 16(3), pages 269-286, September.
  12. Randall S. Brown & Marilyn Moon & Barbara S. Zoloth, 1980. "Incorporating Occupational Attainment in Studies of Male-Female Earnings Differentials," Journal of Human Resources, University of Wisconsin Press, vol. 15(1), pages 3-28.
  13. Gubta, Nabanita Datta & Oaxaca, Ronald L. & Smith, Nina, 2002. "Swimming Upstream, Floating Downstream: Trends in the U.S. and Danish Gender Wage Gaps," CLS Working Papers 01-6, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
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Citations

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Cited by:
  1. 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.
  2. Anne Busch & Elke Holst, 2012. "Occupational Sex Segregation and Management-Level Wages in Germany: What Role Does Firm Size Play?," SOEPpapers on Multidisciplinary Panel Data Research 444, DIW Berlin, The German Socio-Economic Panel (SOEP).
  3. Datta Gupta, Nabanita & Tor, Eriksson, 2005. "New workplace practices and the gender wage gap," Working Papers 04-18, University of Aarhus, Aarhus School of Business, Department of Economics.
  4. Ana Rute Cardoso & Rudolf Winter-Ebmer, 2007. "Mentoring and Segregation: Female-Led Firms and Gender Wage Policies," Economics working papers 2007-20, Department of Economics, Johannes Kepler University Linz, Austria.
  5. Anne Busch & Elke Holst, 2009. "Glass Ceiling Effect and Earnings: The Gender Pay Gap in Managerial Positions in Germany," Discussion Papers of DIW Berlin 905, DIW Berlin, German Institute for Economic Research.

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