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

  • Marie Drolet
  • Karen Mumford

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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File URL: http://hdl.handle.net/10.1111/j.1467-8543.2011.00868.x
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Article provided by London School of Economics in its journal British Journal of Industrial Relations.

Volume (Year): 50 (2012)
Issue (Month): 3 (09)
Pages: 529-553

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Handle: RePEc:bla:brjirl:v:50:y:2012:i:3:p:529-553
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