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The Effect of Higher Education on Gender Wage-Gap

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  • Livanos, Ilias
  • Nunez, Imanol

Abstract

In this paper we investigate the effect of an academic degree on gender wage gap in Greece and the United Kingdom. Using Labour Force Survey (LFS) micro-data, first, we compare the returns to higher education for males and females, second, we decompose the gender wage gap between graduates and individuals with secondary education, and finally we analyse the effect of higher education on the (un)explained part of the wage gap. For that purpose, an extension of the Oaxaca-Blinder decomposition technique is used. We find that the unexplained part, which is often related to discrimination is lower for graduates in both countries.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 25487.

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Date of creation: 01 Jan 2010
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Handle: RePEc:pra:mprapa:25487

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Keywords: Discrimination; graduates; gender;

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  1. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
  2. Dan A. Black & Jeffrey Smith, 2003. "How Robust is the Evidence on the Effects of College Quality? Evidence From Matching," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20033, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
  3. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
  4. Banerjee, Dyuti S. & Gaston, Noel, 2004. "Labour market signalling and job turnover revisited," Labour Economics, Elsevier, vol. 11(5), pages 599-622, October.
  5. Patrick Bolton & Mathias Dewatripont, 2005. "Contract Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262025760, December.
  6. McGuinness, Seamus & Bennett, Jessica, 2007. "Overeducation in the graduate labour market: A quantile regression approach," Economics of Education Review, Elsevier, vol. 26(5), pages 521-531, October.
  7. Wright, Robert E & Ermisch, John F, 1991. "Gender Discrimination in the British Labour Market: A Reassessment," Economic Journal, Royal Economic Society, vol. 101(406), pages 508-22, May.
  8. Arnaud Chevalier, 2007. "Education, Occupation and Career Expectations: Determinants of the Gender Pay Gap for UK Graduates," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 819-842, December.
  9. Nielsen, Helena Skyt, 1998. "Discrimination and detailed decomposition in a logit model," Economics Letters, Elsevier, vol. 61(1), pages 115-120, October.
  10. Ilias Livanos & Çagri Yalkin & Imanol Nuñez, 2009. "Gender employment discrimination: Greece and the United Kingdom," International Journal of Manpower, Emerald Group Publishing, vol. 30(8), pages 815-834, November.
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