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Comparisons in Gender Wage Differentials and Discrimination between Germany and the United Kingdom

  • Mick Brookes
  • Timothy Hinks
  • Duncan Watson

Due to the lack of consistent data, direct and robust comparisons of cross‐country labour markets have been virtually impossible. This study uses a new panel data series that controls for inconsistencies, thus overcoming this problem. This study estimates gender wage differentials and gender discrimination in the German and UK labour markets. Panel estimates are used to identify general wage differences between the two countries, with cross‐sectional comparisons undertaken to identify changes that have occurred between 1991 and 1993, that are consistent with known labour market policies. It is found that gender wage differentials are greater in the UK than Germany with employer discrimination against females attributed with the majority of the difference in both countries. Copyright Fondazione Giacomo Brodolini and Blackwell Publishers Ltd 2001.

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Article provided by CEIS in its journal Labour.

Volume (Year): 15 (2001)
Issue (Month): 3 (09)
Pages: 393-414

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Handle: RePEc:bla:labour:v:15:y:2001:i:3:p:393-414
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  1. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162.
  2. Wright, Robert E & Ermisch, John F, 1991. "Gender Discrimination in the British Labour Market: A Reassessment," Economic Journal, Royal Economic Society, vol. 101(406), pages 508-22, May.
  3. Goldberg, Matthew S, 1982. "Discrimination, Nepotism, and Long-Run Wage Differentials," The Quarterly Journal of Economics, MIT Press, vol. 97(2), pages 307-19, May.
  4. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-12, March.
  5. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
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  7. Lang, Kevin, 1986. "A Language Theory of Discrimination," The Quarterly Journal of Economics, MIT Press, vol. 101(2), pages 363-82, May.
  8. Susan Harkness, 1996. "The gender earnings gap: evidence from the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 17(2), pages 1-36, May.
  9. Miller, Paul W, 1987. "The Wage Effect of the Occupational Segregation of Women in Britain," Economic Journal, Royal Economic Society, vol. 97(388), pages 885-96, December.
  10. Black, B & Trainor, M & Spencer, J E, 1999. "Wage Protection Systems, Segregation and Gender Pay Inequalities: West Germany, the Netherlands and Great Britain," Cambridge Journal of Economics, Oxford University Press, vol. 23(4), pages 449-64, July.
  11. Ashenfelter, Orley & Layard, Richard, 1983. "Incomes Policy and Wage Differentials," Economica, London School of Economics and Political Science, vol. 50(198), pages 127-43, May.
  12. Greenhalgh, Christine A, 1980. "Male-Female Wage Differentials in Great Britain: Is Marriage an Equal Opportunity?," Economic Journal, Royal Economic Society, vol. 90(363), pages 751-75, December.
  13. Knut Gerlach, 1987. "A Note on Male-Female Wage Differences in West Germany," Journal of Human Resources, University of Wisconsin Press, vol. 22(4), pages 584-592.
  14. Phelps, Edmund S, 1972. "The Statistical Theory of Racism and Sexism," American Economic Review, American Economic Association, vol. 62(4), pages 659-61, September.
  15. repec:cup:cbooks:9780521367288 is not listed on IDEAS
  16. John E. Roemer, 1979. "Divide and Conquer: Microfoundations of a Marxian Theory of Wage Discrimination," Bell Journal of Economics, The RAND Corporation, vol. 10(2), pages 695-705, Autumn.
  17. Dolton, P J & Makepeace, G H, 1986. "Sample Selection and Male-Female Earnings Differentials in the Graduate Labour Market," Oxford Economic Papers, Oxford University Press, vol. 38(2), pages 317-41, July.
  18. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  19. Chiplin, Brian & Sloane, P J, 1976. "Personal Characteristics and Sex Differentials in Professional Employment," Economic Journal, Royal Economic Society, vol. 86(344), pages 729-45, December.
  20. Robin Naylor, 1994. "Pay discrimination and imperfect competition in the labor market," Journal of Economics, Springer, vol. 60(2), pages 177-188, June.
  21. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
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