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Can the Workplace Explain Canadian Gender Pay Differentials?

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  • Marie Drolet

Abstract

Using matched employee-employer data from the 1999 Workplace and Employee Survey, the contribution of the workplace to gender pay differentials is explored. The inclusion of workplace characteristics and more accurate industry measures tend to increase the "explained" component to around 60 percent. The workplace accounts for more of gender pay differentials than the worker. When controls for occupation and industry are excluded, about 10.8 percent and 27.9 percent of the pay gap are explained by worker and workplace characteristics respectively. The corresponding numbers are 18.6 percent and 42.6 percent when industry and occupation are included. However, a significant portion of gender pay differentials remains unexplained.

Suggested Citation

  • Marie Drolet, 2002. "Can the Workplace Explain Canadian Gender Pay Differentials?," Canadian Public Policy, University of Toronto Press, vol. 28(s1), pages 41-63, May.
    • Handle: RePEc:cpp:issued:v:28:y:2002:i:s1:p:41-63
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    Cited by:

    1. Marie Drolet & Karen Mumford, 2012. "The Gender Pay Gap for Private-Sector Employees in Canada and Britain," British Journal of Industrial Relations, London School of Economics, vol. 50(3), pages 529-553, September.
    2. Chicha, Marie-Thérèse., 2006. "Analyse comparative de la mise en oeuvre du droit à l'égalité de rémunération : modèles et impacts," ILO Working Papers 993920333402676, International Labour Organization.
    3. Lesley Andres & Maria Adamuti-Trache, 2007. "You've Come a Long Way, Baby? Persistent Gender Inequality in University Enrolment and Completion in Canada, 1979­2004," Canadian Public Policy, University of Toronto Press, vol. 33(1), pages 93-116, March.
    4. Margaret Yap, 2010. "Slicing and dicing the gender/racial earnings differentials," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(4), pages 466-488, July.
    5. Paul H. Jensen, 2010. "Exploring the Uses of Matched Employer–Employee Datasets," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 43(2), pages 209-216, June.
    6. Mumford, Karen A. & Smith, Peter N., 2007. "Assessing the Importance of Male and Female Part-Time Work for the Gender Earnings Gap in Britain," IZA Discussion Papers 2981, Institute of Labor Economics (IZA).
    7. Li, Jiang & Dostie, Benoit & Simard-Duplain, Gaëlle, 2020. "What Is the Role of Firm-Specific Pay Policies on the Gender Earnings Gap in Canada?," IZA Discussion Papers 13907, Institute of Labor Economics (IZA).
    8. Abdullah, Borhan & Zangelidis, Alexandros & Theodossiou, Ioannis, 2023. "Demand and supply effects on native-immigrant wage differentials: the case of Malaysia," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 57, pages 1-22.
    9. Monojit Chatterji & Karen Mumford & Peter N Smith, 2007. "The Public-Private Sector Wage Differential: Gender, Workplaces and Family Friendliness," Dundee Discussion Papers in Economics 202, Economic Studies, University of Dundee.
    10. Luiza Antonie & Miana Plesca & Jennifer Teng, 2016. "Heterogeneity in the Gender Wage Gap in Canada," Working Papers 1603, University of Guelph, Department of Economics and Finance.
    11. repec:ilo:ilowps:399524 is not listed on IDEAS
    12. Mohsen Javdani, 2015. "Glass ceilings or glass doors? The role of firms in male‐female wage disparities," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(2), pages 529-560, May.
    13. Steven Wald & Tony Fang, 2008. "Overeducated Immigrants in the Canadian Labour Market: Evidence from the Workplace and Employee Survey," Canadian Public Policy, University of Toronto Press, vol. 34(4), pages 457-480, December.
    14. Anja Heinze & Elke Wolf, 2010. "The intra-firm gender wage gap: a new view on wage differentials based on linked employer–employee data," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 851-879, June.
    15. Kato, Takao & Kodama, Naomi, 2017. "Women in the Workplace and Management Practices: Theory and Evidence," IZA Discussion Papers 10788, Institute of Labor Economics (IZA).
    16. Heinze, Anja & Wolf, Elke, 2006. "Gender Earnings Gap in German Firms: The Impact of Firm Characteristics and Institutions," ZEW Discussion Papers 06-020, ZEW - Leibniz Centre for European Economic Research.
    17. Chicha, Marie-Thérèse., 2006. "A comparative analysis of promoting pay equity : models and impacts," ILO Working Papers 993995243402676, International Labour Organization.
    18. Wolf, Elke & Heinze, Anja, 2007. "How to Limit Discrimination? Analyzing the Effects of Innovative Workplace Practices on Intra-Firm Gender Wage Gaps Using Linked Employer-Employee Data," ZEW Discussion Papers 07-077, ZEW - Leibniz Centre for European Economic Research.
    19. Christopher Worswick & Frances Woolley & Casey Warman, 2006. "The Evolution Of Male-female Wages Differentials In Canadian Universities: 1970-2001," Working Paper 1099, Economics Department, Queen's University.
    20. repec:ilo:ilowps:392033 is not listed on IDEAS
    21. Heinze, Anja, 2010. "Beyond the mean gender wage gap: Decomposition of differences in wage distributions using quantile regression," ZEW Discussion Papers 10-043, ZEW - Leibniz Centre for European Economic Research.

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