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The Gender Pay Gap for Private Sector Employees in Canada and Britain

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  • Drolet, Marie

    ()
    (Statistics Canada)

  • Mumford, Karen A.

    ()
    (University of York)

Abstract

This paper uses British and Canadian linked employer-employee data to investigate the importance of the workplace for the gender wage gap. Implementing a novel decomposition approach, we find high levels of unexplained wage inequality in the private sector of both countries, which is related to women receiving relatively lower wages within workplaces than do men. Whilst this inequality is partially offset by women, on average, receiving a workplace specific return which is relatively higher than that paid to men, a substantial and significant unexplained within workplace wage gap remains which is considerably higher in Britain than in Canada. The results are consistent with a prima facie argument that country-specific factors, such as the wage setting environment, are important determinants in explaining the relative size 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 3957.

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Length: 30 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:iza:izadps:dp3957

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Keywords: workplaces; gender earnings gap; Britain; Canada;

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References

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  1. Xin Meng & Dominique Meurs, 2004. "The gender earnings gap: effects of institutions and firms--a comparative study of French and Australian private firms," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 189-208, April.
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  3. Daly, Anne & Kawaguchi, Akira & Meng, Xin & Mumford, Karen A., 2006. "The Gender Wage Gap in Four Countries," IZA Discussion Papers 1921, Institute for the Study of Labor (IZA).
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  7. 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.
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  12. Karen Mumford & Peter N. Smith, 2003. "Determinants of current job tenure: a cross country comparison," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(3), pages 435-451, September.
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  20. Mueller, Richard E., 1998. "Public-private sector wage differentials in Canada: evidence from quantile regressions," Economics Letters, Elsevier, Elsevier, vol. 60(2), pages 229-235, August.
  21. Mumford, Karen A. & Smith, Peter N., 2004. "The Gender Earnings Gap in Britain," IZA Discussion Papers 1109, Institute for the Study of Labor (IZA).
  22. Marie Drolet, 2002. "Can the Workplace Explain Canadian Gender Pay Differentials?," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 28(s1), pages 41-63, May.
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Cited by:
  1. Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 10-014, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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