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Inequality-adjusted gender wage differentials in Germany

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  • SELEZNEVA Ekaterina
  • VAN KERM Philippe

Abstract

This paper exploits data from the German Socio-Economic Panel (SOEP) to re-examine the gender wage gap in Germany on the basis of inequality-adjusted measures of wage differentials which fully account for gender differences in pay distributions. The inequality-adjusted gender pay gap measures are significantly larger than suggested by standard indicators, especially in East Germany. Women appear penalized twice, with both lower mean wages and greater wage inequality. A hypothetical risky investment question collected in 2004 in the SOEP is used to estimate individual risk aversion parameters and benchmark the ranges of inequality-adjusted wage differentials measures.

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Bibliographic Info

Paper provided by CEPS/INSTEAD in its series CEPS/INSTEAD Working Paper Series with number 2013-18.

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Length: 28 pages
Date of creation: Sep 2013
Date of revision:
Handle: RePEc:irs:cepswp:2013-18

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Keywords: gender gap; wage differentials; wage inequality; expected utility; risk aversion; East and West Germany; SOEP; Singh-Maddala distribution; copula-based selection model;

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