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Gender disparities in wage returns to human capital components: how different are European labour markets?

Author

Listed:
  • Maryna Tverdostup

    (The Vienna Institute for International Economic Studies (wiiw), Vienna, Austria)

  • Tiiu Paas

    (School of Economics and Business Administration, University of Tartu, Tartu, Estonia)

Abstract

The paper investigates the gender wage gap in relation to the multi-dimensional human capital measure, asking which human capital components are most valued in the European labour markets. Relying on the Programme of International Assessment of Adult Competencies (PIAAC) data for seventeen European countries and applying Gelbach (Citation2016) decomposition, we document remarkable cross-country disparities in the returns to different human capital components. The only dimension that consistently and significantly decreases gender wage disparities in all countries is work experience related to a currently occupied position. Numeracy cognitive ability is another strong predictors of the gender wage disparity, while job-specific cognitive and non-cognitive skills reveal weaker than expected association with the gender wage gap. Unlike the studies stressing the decreasing importance of human capital in the gender wage gap assessment, we argue that a narrow definition of human capital may undermine the actual effect of the latter.

Suggested Citation

  • Maryna Tverdostup & Tiiu Paas, 2022. "Gender disparities in wage returns to human capital components: how different are European labour markets?," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 22(1), pages 28-48.
    • Handle: RePEc:bic:journl:v:22:y:2022:i:1:p:28-48
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    File URL: https://www.tandfonline.com/doi/epdf/10.1080/1406099X.2022.2033418
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    Citations

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    Cited by:

    1. Iimi, Atsushi, 2025. "Job Accessibility, Commute Time, and Efficiency of Urban Transport : Evidence from Dar es Salaam," Policy Research Working Paper Series 11186, The World Bank.
    2. Iimi, Atsushi, 2025. "Measuring Job Accessibility : Different Methods and New Data," Policy Research Working Paper Series 11181, The World Bank.
    3. Iimi, Atsushi, 2025. "Direct and Indirect Impacts of Transport Mobility on Access to Jobs : Evidence from South Africa," Policy Research Working Paper Series 11255, The World Bank.
    4. Scoppa, Vincenzo & Spanò, Idola Francesca, 2025. "Do Women Ask for Less? Evidence from Reservation Wages in Italy," IZA Discussion Papers 18230, IZA Network @ LISER.

    More about this item

    Keywords

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    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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