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Market Orientation and Gender Wage Gaps: an International Study

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  • Martina Zweimüller
  • Rudolf Winter‐Ebmer
  • Doris Weichselbaumer

Abstract

More market orientation may reduce gender wage gaps via its effects on competition in product and labor markets and a generally lower level of regulation in the economy. On the other hand, less regulation and state intervention – which goes along with higher market orientation – may diminish the role of legislature and institutions that influence wage setting and may therefore increase gender wage differentials. In this paper, two very different approaches are used to test the relation between market orientation and gender wage differentials in international data. The first approach employs meta‐analysis data and takes advantage of the fact that many studies already exist which use national data sources to the best possible extent. The second approach uses comparable micro data from the International Social Survey Programme (ISSP), which allows calculating internationally consistent gender wage residuals in the first place. By comparing these two very different methods of data collection we get the robust result that higher levels of market orientation as proxied by the Economic Freedom Index lead to lower gender wage gaps across countries and time periods.

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  • Martina Zweimüller & Rudolf Winter‐Ebmer & Doris Weichselbaumer, 2008. "Market Orientation and Gender Wage Gaps: an International Study," Kyklos, Wiley Blackwell, vol. 61(4), pages 615-635, November.
  • Handle: RePEc:bla:kyklos:v:61:y:2008:i:4:p:615-635
    DOI: 10.1111/j.1467-6435.2008.00419.x
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    2. Hirata, Guilherme & Soares, Rodrigo R., 2020. "Competition and the racial wage gap: Evidence from Brazil," Journal of Development Economics, Elsevier, vol. 146(C).
    3. Boris Hirsch & Steffen Mueller, 2014. "Firm leadership and the gender pay gap: do active owners discriminate more than hired managers?," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 47(1), pages 129-142, March.
    4. Josef Montag, 2013. "Is Pro-Labor Law Pro-Women? Evidence from India," MENDELU Working Papers in Business and Economics 2013-40, Mendel University in Brno, Faculty of Business and Economics.
    5. Kathryn H. Anderson & Damir Esenaliev, 2019. "Gender Earnings Inequality and Wage Policy: Teachers, Health Care, and Social Workers in Central Asia," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(4), pages 551-575, December.
    6. Joshua C. Hall & Robert A. Lawson, 2014. "Economic Freedom Of The World: An Accounting Of The Literature," Contemporary Economic Policy, Western Economic Association International, vol. 32(1), pages 1-19, January.
    7. Irene Comeig & Ainhoa Jaramillo-Gutiérrez & Federico Ramírez, 2017. "Toward Value Co-Creation: Increasing Women’s Presence in Management Positions through Competition against a Set Target," Sustainability, MDPI, Open Access Journal, vol. 9(10), pages 1-10, October.
    8. Parra Osorio, Juan Carlos & Wodon, Quentin, 2010. "Gender, Time Use, and Labor Income in Guinea: Micro and Macro Analyses," MPRA Paper 28465, University Library of Munich, Germany.
    9. Boris Hirsch & Michael Oberfichtner & Claus Schnabel, 2014. "The levelling effect of product market competition on gender wage discrimination," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-14, December.
    10. repec:kap:iaecre:v:19:y:2013:i:4:p:331-354 is not listed on IDEAS
    11. Karolina Goraus & Joanna Tyrowicz & Lucas van der Velde, 2017. "How (Not) to make women work?," GRAPE Working Papers 1, GRAPE Group for Research in Applied Economics.
    12. Backiny-Yetna, Prospere & Wodon, Quentin, 2010. "Gender Labor Income Shares and Human Capital Investment in the Republic of Congo," MPRA Paper 27737, University Library of Munich, Germany.
    13. Ghani,Syed Ejaz & Grover,Arti & Kerr,Sari & Kerr,William Robert, 2016. "Will market competition trump gender discrimination in India ?," Policy Research Working Paper Series 7814, The World Bank.
    14. Nopo, Hugo R. & Daza, Nancy & Ramos, Johanna, 2011. "Gender Earnings Gaps in the World," IZA Discussion Papers 5736, Institute of Labor Economics (IZA).
    15. Laura Serviere-Munoz & Anshu Saran, 2012. "Market Orientation, Innovation, And Dynamism From An Ownership And Gender Approach: Evidence From Mexico," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 5(2), pages 1-17.
    16. Iga Magda & Katarzyna Sałach, 2021. "Gender pay gaps in domestic and foreign-owned firms," Empirical Economics, Springer, vol. 61(4), pages 2237-2263, October.
    17. Dorota Witkowska, 2013. "Gender Disparities in the Labor Market in the EU," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 19(4), pages 331-354, November.
    18. Boris Hirsch & Michael Oberfichtner & Claus Schnabel, 2012. "Do women benefit from competitive markets? Product market competition and the gender pay gap in Germany," Economics Bulletin, AccessEcon, vol. 32(2), pages 1618-1624.

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    More about this item

    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
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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