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Wage differences between women and men in Sweden - the impact of skill mismatch

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Author Info
Johansson, Mats (Institute for Futures Studies)
Katz, Katarina () (Department of Economics and Business, Karlstad University)
Abstract

We investigate skill mismatch and its impact on gender differences in wage gap and in returns to education in Sweden 1993 to 2002.Women are more likely to have more formal education than what is normally required for their occupation (overeducation), while men are more likely to have less (undereducation).Over- and undereducation contribute far more to the gender wage gap than years of schooling and work experience. In decompositions, adjusting for skill mismatch decreases the gender wage gap by between one tenth and one sixth. This is roughly a third to a half as much as is accounted for by segregation by industry. Thus, taking skill mismatch into account is essential for the analysis of gender wage differentiation, even though it does not alter the result that the estimated returns to education are smaller for women than for men in Sweden.

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Publisher Info
Paper provided by IFAU - Institute for Labour Market Policy Evaluation in its series Working Paper Series with number 2007:13.

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Length: 54 pages
Date of creation: 07 Jun 2007
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Handle: RePEc:hhs:ifauwp:2007_013

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Related research
Keywords: Gender differentials discrimination over- and undereducation

Find related papers by JEL classification:
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
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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