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Wage Differences Between Men and Women in Austria: Evidence from 1983 and 1997

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Author Info

  • Böheim, René

    ()
    (University of Linz)

  • Hofer, Helmut

    ()
    (IHS - Institute for Advanced Studies, Vienna)

  • Zulehner, Christine

    ()
    (University of Vienna)

Abstract

In most OECD countries the wage gap between men and women has declined during the past two decades. Developments of the last 20 years, e.g. increased labour market attachment of women, changes in the bargaining structure, and the introduction of equal pay laws, may have reduced the gender wage gap. We investigate the extent, persistence, and socio-economic determinants of the gender wage gap in Austria, for the years 1983 and 1997. Using wage decomposition techniques, we find that the average gender wage gap was almost as high in 1997 as it was in 1983. Not accounting for differences, the gender wage gap dropped from 25.5 to 23.3 per cent. Taking observable differences between men and women into account, we estimate that the mean gender wage gap which cannot be explained, i.e. discrimination against women, dropped from 18 to 15.5 per cent of men’s wages. The drop in discrimination is the main reason for the narrowing of the gender wage gap.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1554.

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Length: 23 pages
Date of creation: Apr 2005
Date of revision:
Publication status: published as 'Wage differences between Austrian men and women: semper idem?' in: Empirica, 2007, 34 (3), 213-29
Handle: RePEc:iza:izadps:dp1554

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Keywords: decomposition; wage differentials; wage inequality;

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References

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  1. Nicole M. Fortin & Thomas Lemieux, 1998. "Rank Regressions, Wage Distributions, and the Gender Gap," Journal of Human Resources, University of Wisconsin Press, vol. 33(3), pages 610-643.
  2. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2003. "A meta-analysis of the international gender wage gap," Economics working papers, Department of Economics, Johannes Kepler University Linz, Austria 2003-11, Department of Economics, Johannes Kepler University Linz, Austria.
  3. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  4. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
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  6. Zweimuller, Jopsef & Winter- Ebmer, Rudolf, 1993. "Gender Wage Differentials in Private and Public Sector Jobs," Institute for Research on Labor and Employment, Working Paper Series, Institute of Industrial Relations, UC Berkeley qt7ps0140j, Institute of Industrial Relations, UC Berkeley.
  7. Fersterer, Josef & Winter-Ebmer, Rudolf, 1999. "Are Austrian Returns to Education Falling Over Time?," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2313, C.E.P.R. Discussion Papers.
  8. Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 2003. "New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee-Employer Data," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 21(4), pages 887-922, October.
  9. Machin, Stephen & Puhani, Patrick A., 2002. "Subject of Degree and the Gender Wage Differential: Evidence from the UK and Germany," IZA Discussion Papers 553, Institute for the Study of Labor (IZA).
  10. Jaume Garcia & Pedro J. Hernández & Ángel López Nicolás, 1998. "How wide is the gap? An investigation of gender wage differences using quantile regression," Economics Working Papers, Department of Economics and Business, Universitat Pompeu Fabra 287, Department of Economics and Business, Universitat Pompeu Fabra.
  11. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 101(3), pages 410-42, June.
  12. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 63(250), pages S29-62, Suppl..
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Cited by:
  1. René Böheim & Klemens Himpele & Helmut Mahringer & Christine Zulehner, 2011. "The Gender Pay Gap in Austria: Tamensi Movetur!," WIFO Working Papers, WIFO 394, WIFO.
  2. Thomas Grandner & Dieter Gstach, 2012. "Decomposing wage discrimination in Germany and Austria with counterfactual densities," Department of Economics Working Papers wuwp145, Vienna University of Economics, Department of Economics.

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