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Recruitment and Pay at the Establishment Level: Gender Segregation and the Wage Gap in Portugal

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Author Info
Cabral Vieira, José A. (University of the Azores)
Cardoso, Ana Rute () (IZA Bonn, University of Minho and CEPR)
Portela, Miguel (Tinbergen Institute and University of Minho)

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Abstract

This paper aims at quantifying the trend in worker segregation at the establishment level and its impact on wages in Portugal over a fifteen year period. We concentrate on the gender dimension, to answer the questions: have changes in recruitment policies at the establishment level resulted in higher gender segregation in the labour market? What is the impact of segregation on wages? Is that impact different for men and women? A large linked employer-employee data set is used. Systematic and random components of segregation are computed. We use standard wage decomposition techniques to evaluate the impact of the composition of the labour force at the establishment level on wages. Results reveal a high degree of systematic gender segregation. A higher proportion of females in the establishment lowers females' wages while, on the contrary, it raises males' wages. Between mid-80s and late-90s, the contribution of the gender composition of the workforce within the establishment to the wage gap increased, though fluctuating within that period. The evidence gathered lends support to the taste-based model of employer behaviour.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 789.

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Length: 20 pages
Date of creation: Jun 2003
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Handle: RePEc:iza:izadps:dp789

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Related research
Keywords: systematic segregation random segregation gender wage inequality

Find related papers by JEL classification:
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
J7 - Labor and Demographic Economics - - Labor Discrimination

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Kremer, Michael, 1993. "The O-Ring Theory of Economic Development," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 551-75, August. [Downloadable!] (restricted)
  2. Kiker, B. F. & Santos, Maria C., 1991. "Human capital and earnings in Portugal," Economics of Education Review, Elsevier, vol. 10(3), pages 187-203, September. [Downloadable!] (restricted)
  3. Kenneth R Troske & William J Carrington, 1992. "Gender Segregation Small Firms," Working Papers 92-13, Center for Economic Studies, U.S. Census Bureau, revised May 1993. [Downloadable!]
  4. Kenneth R Troske & William J Carrington, 1996. "Sex Segregation in U.S. Manufacturing," Working Papers 96-4, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  5. Kevin Reilly & Tony Wirjanto, 1999. "Does More Mean Less? The Male/Female Wage Gap and the Proportion of Females at the Establishment Level," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 906-929, August. [Downloadable!] (restricted)
    Other versions:
  6. Carrington, William J & Troske, Kenneth R, 1997. "On Measuring Segregation in Samples with Small Units," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(4), pages 402-09, October.
  7. Erica L. Groshen, 1987. "The structure of the female/male wage differential: is it who you are, what you do, or where you work?," Working Paper 8708, Federal Reserve Bank of Cleveland. [Downloadable!]
  8. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
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Cited by:
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  1. Pilar González & Maria Clementina Santos & Luís Delfim Santos, 2005. "The Gender Wage Gap in Portugal: Recent Evolution and Decomposition," CETE Discussion Papers 0505, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
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