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Wage Inequality, Selection and the Evolution of the Gender Earnings Gap in Sweden

Author

Listed:
  • Ahrsjö, Ulrika

    (Dept. of Economics, Stockholm University)

  • Niknami, Susan

    (Dept. of Economics, Stockholm University)

  • Palme, Mårten

    (Dept. of Economics, Stockholm University)

Abstract

We estimate the change in the gender wage gap between 1968 and 2010 in Sweden accounting for (1) changes in the intensive margin of labour supply; (2) changes in the overall wage inequality; (3) changes in selection into the labor market using parametric and non-parametric selection corrections. Our results show that between 1968 and 1991, about half of the changes in the gender wage gap can be attributed to changes in the overall wage distribution. Conversely, changes in the wage distribution in 1991-2010 masks a larger closure of the gender wage gap. Our corrections for selection into the labor force suggest that uncorrected estimates miss about half of the around 20 percentage points decrease in the gender wage gap over the 1968-2010 period.

Suggested Citation

  • Ahrsjö, Ulrika & Niknami, Susan & Palme, Mårten, 2021. "Wage Inequality, Selection and the Evolution of the Gender Earnings Gap in Sweden," Research Papers in Economics 2021:3, Stockholm University, Department of Economics.
    • Handle: RePEc:hhs:sunrpe:2021_0003
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    References listed on IDEAS

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    More about this item

    Keywords

    Gender pay gap; wage gap; gender inequality; selective samples;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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