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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. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  2. Joseph G. Altonji & Rebecca M. Blank, . "Race and Gender in the Labor Market," IPR working papers 98-18, Institute for Policy Resarch at Northwestern University.
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  4. Tracy L. Regan & Ronald L. Oaxaca, 2007. "Work experience as a source of specification errorin earnings models: implications for genderwage decompositions," Working Papers 2010-6, University of Miami, Department of Economics.
  5. Sara Connolly & Mary Gregory, 2008. "Moving Down: Women's Part-Time Work and Occupational Change in Britain 1991-2001," Economic Journal, Royal Economic Society, vol. 118(526), pages F52-F76, 02.
  6. Michael Baker & Nicole M. Fortin, 1999. "Occupational Gender Composition and Wages in Canada: 1987-1988," NBER Working Papers 7371, National Bureau of Economic Research, Inc.
  7. Karen Mumford & Peter N. Smith, 2003. "Determinants of current job tenure: a cross country comparison," Australian Journal of Labour Economics (AJLE), The Centre for Labour Market Research (CLMR), Curtin Business School, vol. 6(3), pages 435-451, September.
  8. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
  9. Richard Disney & Amanda Gosling, 2008. "Changing public sector wage differentials in the UK," IFS Working Papers W08/02, Institute for Fiscal Studies.
  10. Manning, Alan & Petrongolo, Barbara, 2006. "The Part-Time Pay Penalty for Women in Britain," IZA Discussion Papers 2419, Institute for the Study of Labor (IZA).
  11. Marie Drolet, 2002. "Can the Workplace Explain Canadian Gender Pay Differentials?," Canadian Public Policy, University of Toronto Press, vol. 28(s1), pages 41-63, May.
  12. Linda Dickens, 2007. "The Road is Long: Thirty Years of Equality Legislation in Britain," British Journal of Industrial Relations, London School of Economics, vol. 45(3), pages 463-494, 09.
  13. 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).
  14. Francine D. Blau & Lawrence M. Kahn, 2003. "Understanding International Differences in the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 106-144, January.
  15. 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.
  16. Rhys Davies & Richard Welpton, 2008. "How Does Workplace Monitoring Affect the Gender Wage Differential? Analysis of the Annual Survey of Hours and Earnings and the 2004 Workplace Employment Relations Survey - A Research Note," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 732-749, December.
  17. Karen Mumford & Peter N Smith, . "The Gender Earnings Gap in Britain," Discussion Papers 04/05, Department of Economics, University of York.
  18. Marie Drolet, 2002. "Can the workplace explain Canadian gender pay differentials?," New Zealand Economic Papers, Taylor and Francis Journals, vol. 36(1), pages 75-77.
  19. John M. Abowd & John C. Haltiwanger & Julia I. Lane, 2004. "Integrated Longitudinal Employee-Employer Data for the United States," Longitudinal Employer-Household Dynamics Technical Papers 2004-02, Center for Economic Studies, U.S. Census Bureau.
  20. Erica L. Groshen, 1991. "The Structure of the Female/Male Wage Differential: Is It Who You Are, What You Do, or Where You Work?," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 457-472.
  21. Stewart, Mark B, 1982. "On Least Squares Estimation when the Dependent Variable is Grouped," The Warwick Economics Research Paper Series (TWERPS) 207, University of Warwick, Department of Economics.
  22. Mueller, Richard E., 1998. "Public-private sector wage differentials in Canada: evidence from quantile regressions," Economics Letters, Elsevier, vol. 60(2), pages 229-235, August.
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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 10-014, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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