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Gender wage differences in West Germany: a cohort analysis

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  • Fitzenberger, Bernd
  • Wunderlich, Gaby

Abstract

A comprehensive descriptive analysis of gender wage differences over a long time period is missing for West Germany. Using an empirical approach which takes into account explicitely changes of wage distributions for both males and females as well as life-cycle and birth cohort effects, we go beyond conventional decomposition techniques of the average gender wage gap. The paper provides some stylized facts of the level and dynamics of the gender wage gap from 1975 - 1995. The empirical analysis is based upon the IAB-Beschäftigtenstichprobe. Our findings confirm the importance of distributional effects relating to skill level and employment status. While life-cycle wage growth is in general much lower for females compared to males, comparing their estimated time trends implies that the gender wage gap has narrowed substantially in the lower part of the wage distribution especially for low-and medium-skilled females but much less so in the upper part of the wage distribution. Surprisingly, we do not find any cohort effects for wages of female employees. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 00-48.

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Date of creation: 2000
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Handle: RePEc:zbw:zewdip:5332

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Keywords: Gender Wage Gap; Quantile Regression; Cohort Analysis;

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References

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  1. Reinhard Hujer & Bernd Fitzenberger & Reinhold Schnabel & Thomas E. MaCurdy, 2001. "Testing for uniform wage trends in West-Germany: A cohort analysis using quantile regressions for censored data," Empirical Economics, Springer, vol. 26(1), pages 41-86.
  2. Hunt, Jennifer, 1998. "The Transition in East Germany: When is a Ten Point Fall in the Gender Wage Gap Bad News?," CEPR Discussion Papers 1805, C.E.P.R. Discussion Papers.
  3. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, vol. 63(250), pages S29-62, Suppl..
  4. Lauer, Charlotte, 2000. "Gender wage gap in West Germany: how far do gender differences in human capital matter?," ZEW Discussion Papers 00-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Boockmann, Bernhard & Steiner, Viktor, 2000. "Cohort effects and the returns to education in West Germany," ZEW Discussion Papers 00-05, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  6. Fitzenberger, Bernd, 1998. "The moving blocks bootstrap and robust inference for linear least squares and quantile regressions," Journal of Econometrics, Elsevier, vol. 82(2), pages 235-287, February.
  7. Powell, James L., 1986. "Censored regression quantiles," Journal of Econometrics, Elsevier, vol. 32(1), pages 143-155, June.
  8. A Gosling & Stephen Machin, 1995. "The Changing Distribution of Male Wages in the UK," CEP Discussion Papers dp0271, Centre for Economic Performance, LSE.
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