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Market Orientation and Gender Wage Gaps: an International Study

Author

Listed:
  • 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.

Suggested Citation

  • 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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    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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