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Everything You Always Wanted to Know about Sex Discrimination

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  • Cardoso, Ana Rute

    ()
    (IAE Barcelona (CSIC))

  • Guimaraes, Paulo

    ()
    (University of Porto)

  • Portugal, Pedro

    ()
    (Banco de Portugal)

Abstract

Earlier literature on the gender pay gap has taught us that occupations matter and so do firms. However, the role of the firm has received little scrutiny; occupations have most often been coded in a rather aggregate way, lumping together different jobs; and the use of samples of workers prevents any reliable determination of either the extent of segregation or the relative importance of access to firms versus occupations. Our contribution is twofold. We provide a clear measure of the impact of the allocation of workers to firms and to job titles shaping the gender pay gap. We also provide a methodological contribution that combines the estimation of sets of high-dimensional fixed effects and Gelbach's (2009) unambiguous decomposition of the conditional gap. We find that one fifth of the gender pay gap results from segregation of workers across firms and one fifth from job segregation. We also show that the widely documented glass ceiling effect operates mainly through worker allocation to firms rather than occupations.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7109.

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Length: 28 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:iza:izadps:dp7109

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Keywords: gender wage gap; high-dimensional fixed effects; segregation;

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References

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  1. Paulo Guimarães & Pedro Portugal, 2010. "A simple feasible procedure to fit models with high-dimensional fixed effects," Stata Journal, StataCorp LP, StataCorp LP, vol. 10(4), pages 628-649, December.
  2. Claudia Olivetti & Barbara Petrongolo, 2005. "Unequal pay or unequal employment? A cross-country analysis of gender gaps," Boston University - Department of Economics - Working Papers Series, Boston University - Department of Economics WP2005-008, Boston University - Department of Economics.
  3. Simon D. Woodcock, 2007. "Wage Differentials in the Presence of Unobserved Worker, Firm, and Match Heterogeneity," Discussion Papers dp07-10, Department of Economics, Simon Fraser University.
  4. Nicole M. Fortin & Michael Huberman, 2002. "Occupational Gender Segregation and Women's Wages in Canada: An Historical Perspective," Canadian Public Policy, University of Toronto Press, University of Toronto Press, vol. 28(s1), pages 11-39, May.
  5. Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "A Meta-Analysis of the International Gender Wage Gap," CEPR Discussion Papers, C.E.P.R. Discussion Papers 4127, C.E.P.R. Discussion Papers.
  6. Kathy Cannings & Claude Montmarquette, 1991. "Managerial momentum: A simultaneous model of the career progress of male and female managers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 44(2), pages 212-228, January.
  7. Stephen B. Jarrell & T. D. Stanley, 2004. "Declining Bias and Gender Wage Discrimination? A Meta-Regression Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
  8. Claudia Goldin & Cecilia Rouse, 1997. "Orchestrating Impartiality: The Impact of "Blind" Auditions on Female Musicians," NBER Working Papers 5903, National Bureau of Economic Research, Inc.
  9. Alan Manning & Joanna Swaffield, 2005. "The gender gap in early career wage growth," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 19883, London School of Economics and Political Science, LSE Library.
  10. Marianne Bertrand & Kevin F. Hallock, 2001. "The Gender gap in top corporate jobs," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 55(1), pages 3-21, October.
  11. John T. Addison & Mário Centeno & Pedro Portugal, 2004. "Reservation Wages, Search Duration, and Accepted Wages in Europe," Working Papers, Banco de Portugal, Economics and Research Department w200413, Banco de Portugal, Economics and Research Department.
  12. Kunze, Astrid, 2005. "The evolution of the gender wage gap," Labour Economics, Elsevier, Elsevier, vol. 12(1), pages 73-97, February.
  13. Joseph G. Altonji & Rebecca M. Blank, . "Race and Gender in the Labor Market," IPR working papers, Institute for Policy Resarch at Northwestern University 98-18, Institute for Policy Resarch at Northwestern University.
  14. Sónia Torres & Pedro Portugal & John T. Addison & Paulo Guimarães, 2013. "The sources of wage variation: a three-way high-dimensional fixed effects regression model," Working Papers, Banco de Portugal, Economics and Research Department w201309, Banco de Portugal, Economics and Research Department.
  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. William J. Carrington & Kenneth R. Troske, 1998. "Sex segregation in U.S. manufacturing," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(3), pages 445-464, April.
  17. Baldwin, Marjorie L & Butler, Richard J & Johnson, William G, 2001. "A Hierarchical Theory of Occupational Segregation and Wage Discrimination," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 39(1), pages 94-110, January.
  18. T.D. Stanley & Stephen B. Jarrell, 1998. "Gender Wage Discrimination Bias? A Meta-Regression Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 947-973.
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Cited by:
  1. Card, David & Cardoso, Ana Rute & Kline, Patrick, 2013. "Bargaining and the Gender Wage Gap: A Direct Assessment," IZA Discussion Papers 7592, Institute for the Study of Labor (IZA).

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