The Distribution of the Gender Wage Gap in Italy: Does Education Matter?
AbstractIn this paper we evaluate the wage gap due to differences in rewards to characteristics by studying the entire distribution of the individual unexplained wage gap. We use quantile regressions and an adaptation of the procedure suggested by Machado and Mata (2005) to derive the marginal distributions of predicted and counterfactual female wages. Then, we estimate probability distributions of unexplained wage gap conditional to observed characteristics. The methodology allows to evaluate the probability of women with different characteristics to experience any level of discrimination. The main focus of the paper is on the relationship between human capital characteristics and outcomes in differences in pay. In particular, we focus our attention on different educational levels. Under the hypothesis that women invest in education to signal their productivity, we should detect a lower wage gap -due to differences in rewards to characteristics- among high educated females. Our analysis suggests that education can be a good signal but not for all females. We also show that education interacts differently with other human capital characteristics, such as general experience acquired in the labour market. The analysis is carried out on Italian data drawn from the last available cross-section of the European Community Household Panel (2001)
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Bibliographic InfoPaper provided by University of Modena and Reggio E., Dept. of Economics in its series Center for Economic Research (RECent) with number 004.
Length: pages 42
Date of creation: Sep 2007
Date of revision:
Gender Wage Gap; Distributive Analysis; Human Capital;
Find related papers by JEL classification:
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
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- Mussida, C. & Picchio, M., 2011.
"The Trend over Time of the GenderWage Gap in Italy,"
2011-093, Tilburg University, Center for Economic Research.
- Chiara MUSSIDA & Matteo PICCHIO, 2011. "The Trend over Time of the Gender Wage Gap in Italy," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011031, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Mussida, Chiara & Picchio, Matteo, 2011. "The Trend over Time of the Gender Wage Gap in Italy," IZA Discussion Papers 5932, Institute for the Study of Labor (IZA).
- Yolanda Pena-Boquete & Sergio De Stefanis & Manuel Fernandez-Grela, 2010. "The distribution of gender wage discrimination in Italy and Spain: a comparison using the ECHP," International Journal of Manpower, Emerald Group Publishing, vol. 31(2), pages 109-137, May.
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