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Inter-industry wage differentials and the gender wage gap in Belgium

  • Ilan Tojerow
  • François Rycx

This paper simultaneously analyses the gender wage gap and the inter-industry wage differentials in the Belgian private sector. On the basis of the 1995 Structure of Earning Survey, we estimate the inter-industry wage differentials by gender and the gender wage gap by industry. We find significant interindustry wage differentials for men and women, even when controlling for a large number of productivity-related factors. These differentials are highly correlated but significantly different. An Oaxaca (1973) and Blinder (1973) decomposition, realised at the Nace three-digit level, shows that around one-tenth of the overall gender wage gap (on average women earn 22% less than men) is due to industry effects.

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Article provided by ULB -- Universite Libre de Bruxelles in its journal Brussels economic review.

Volume (Year): 45 (2002)
Issue (Month): 2 ()
Pages: 119-141

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Handle: RePEc:bxr:bxrceb:y:2002:v:45:i:2:p:119-141
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  1. Gibbons, Robert & Katz, Lawrence F, 1992. "Does Unmeasured Ability Explain Inter-industry Wage Differentials?," Review of Economic Studies, Wiley Blackwell, vol. 59(3), pages 515-35, July.
  2. Ilan Tojerow & François Rycx, 2007. "Inter-industry wage differentials: what do we know?," ULB Institutional Repository 2013/8789, ULB -- Universite Libre de Bruxelles.
  3. 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.
  4. Judith Fields & Edward N. Wolff, 1995. "Interindustry wage differentials and the gender wage gap," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(1), pages 105-120, October.
  5. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March.
  6. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
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