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The Gender Pay Gap for Private Sector Employees in Canada and Britain

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  • Marie Drolet
  • Karen Mumford

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 substantial unexplained wage gaps in the private sector of both countries. Whilst this wage differential 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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Paper provided by Department of Economics, University of York in its series Discussion Papers with number 09/28.

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Handle: RePEc:yor:yorken:09/28

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Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
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  2. 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.
  3. 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.
  4. 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).
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  7. Connolly, Sara & Gregory, Mary, 2007. "Moving Down: Women’s Part-time Work and Occupational Change in Britain 1991–2001," IZA Discussion Papers 3106, Institute for the Study of Labor (IZA).
  8. Francine D. Blau & Lawrence M. Kahn, 2001. "Understanding International Differences in the Gender Pay Gap," NBER Working Papers 8200, National Bureau of Economic Research, Inc.
  9. Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 2003. "New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee-Employer Data," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 887-922, October.
  10. Mumford, Karen A. & Smith, Peter N., 2004. "The Gender Earnings Gap in Britain," IZA Discussion Papers 1109, Institute for the Study of Labor (IZA).
  11. 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.
  12. 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.
  13. 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.
  14. Michael Baker & Nicole M. Fortin, 2000. "Occupational Gender Composition and Wages in Canada: 1987-1988," Working Papers baker-00-01, University of Toronto, Department of Economics.
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  16. 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.
  17. 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.
  18. 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.
  19. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  20. Richard Disney & Amanda Gosling, 2008. "Changing public sector wage differentials in the UK," IFS Working Papers W08/02, Institute for Fiscal Studies.
  21. Anne Daly & Xin Meng & Akira Kawaguchi & Karen Mumford, 2006. "The Gender Wage Gap in Four Countries," The Economic Record, The Economic Society of Australia, vol. 82(257), pages 165-176, 06.
  22. Karen Mumford & Peter N. Smith, 2003. "Determinants of current job tenure: a cross country comparison," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(3), pages 435-451, September.
  23. Marie Drolet, 2002. "Can the workplace explain Canadian gender pay differentials?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 36(1), pages 75-77.
  24. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier.
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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," Labour Economics, Elsevier, vol. 17(5), pages 835-847, October.

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