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Gender wage gap and the glass ceiling effect: a firm‐level investigation

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  • Christine Barnet‐Verzat
  • François‐Charles Wolff

Abstract

Purpose - The purpose of this paper is to assess the relevance of the glass ceiling effect, according to which the gender log wage gap accelerates in the upper tail of the wage distribution, at the firm level. Design/methodology/approach - The empirical analysis is based on a sample of 4,654 employees, working in a French private company from the Defence and Aerospace sector. Quantile wage regressions were used to study whether a glass ceiling effect exits at the firm level. The difference between the male and female wage distributions is also decomposed into two components, one due to differences in labour market characteristics between men and women and one due to differences in rewards to these individual characteristics. Findings - It was found that the gender wage gap measured through OLS is quite low, less than 8 per cent when controlling for age, experience, qualification and location. It remains rather flat along the wage distribution, a result which casts doubt on the glass ceiling theory. The gender gap is mainly due to differences in labour market characteristics rather than to differences in the rewards of these characteristics, especially among executives. Finally, women face a lower probability of reaching higher hierarchical positions within the firm. Research limitations/implications - Taking into account firm effects matters when measuring the magnitude of the gender wage throughout the wage gap distribution. Originality/value - This paper presents original estimates of the gender wage gap with an unusual, firm‐based sample of workers.

Suggested Citation

  • Christine Barnet‐Verzat & François‐Charles Wolff, 2008. "Gender wage gap and the glass ceiling effect: a firm‐level investigation," International Journal of Manpower, Emerald Group Publishing Limited, vol. 29(6), pages 486-502, September.
    • Handle: RePEc:eme:ijmpps:v:29:y:2008:i:6:p:486-502
    DOI: 10.1108/01437720810904185
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    Citations

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    Cited by:

    1. Madhurima Basu & Anubha Shekhar Sinha, 2021. "The Glass-Ceiling Phenomenon: A Literature Review and Research AgendaAbstract: In a patriarchal society with values that are mostly male-dominated, it is indeed difficult for a woman to secure a deser," Working papers 425, Indian Institute of Management Kozhikode.
    2. Christian Pfeifer & Tatjana Sohr, 2009. "Analysing the Gender Wage Gap (GWG) Using Personnel Records," LABOUR, CEIS, vol. 23(2), pages 257-282, June.
    3. Moritz Drechsel-Grau & Felix Holub, 2020. "Gender Gaps and the Role of Bosses," CRC TR 224 Discussion Paper Series crctr224_2020_237, University of Bonn and University of Mannheim, Germany.
    4. Das, Jishnu & Joubert, Clément, 2023. "Women in the pipeline: A dynamic decomposition of firm pay gaps," Labour Economics, Elsevier, vol. 80(C).
    5. Dohmen, Thomas & Lehmann, Hartmut & Zaiceva, Anzelika, 2008. "The gender earnings gap inside a Russian firm : first evidence from personnel data - 1997 to 2002," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 157-179.
    6. Thomas Dohmen & Hartmut Lehmann & Anzelika Zaiceva, 2008. "The Gender Earnings Gap inside a Russian Firm: First Evidence from Personnel Data - 1997 to 2002 ; Updated Version," ESCIRRU Working Papers 6, DIW Berlin, German Institute for Economic Research.
    7. Madhurima Basu & Anubha Shekhar Sinha, 2021. "Unravelling the Glass Ceiling Phenomenon Using Critical Hermeneutics," Working papers 426, Indian Institute of Management Kozhikode.
    8. Christophe J. Nordman & François-Charles Wolff, 2009. "Gender differences in pay in African manufacturing firms," Working Papers hal-00421227, HAL.
    9. Dohmen, Thomas & Lehmann, Hartmut & Zaiceva, Anzelika, 2008. "The gender earnings gap inside a Russian firm : first evidence from personnel data - 1997 to 2002," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 157-179.
    10. Robert Breunig & Sandrine Rospabe, 2013. "The male-female wage gap in France - differences across the wage distribution," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 16(1), pages 155-199.
    11. Sajjad Haider Bhatti & Muhammad Aslam & Jean Bourdon, 2018. "Market Returns to Education in Pakistan, Corrected for Endogeneity Bias," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 23(1), pages 79-96, Jan-June.
    12. Dohmen, Thomas & Lehmann, Hartmut & Zaiceva, Anzelika, 2008. "The gender earnings gap inside a Russian firm : first evidence from personnel data - 1997 to 2002," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(2/3), pages 157-179.
    13. Jan‐luca Hennig & Balazs Stadler, 2023. "Firm‐specific pay premiums and the gender wage gap in Europe," Post-Print hal-04171877, HAL.
    14. Pfeifer, Christian & Sohr, Tatjana, 2008. "Analysing the Gender Wage Gap Using Personnel Records of a Large German Company," IZA Discussion Papers 3533, Institute of Labor Economics (IZA).
    15. Jan‐Luca Hennig & Balazs Stadler, 2023. "Firm‐specific pay premiums and the gender wage gap in Europe," Economica, London School of Economics and Political Science, vol. 90(359), pages 911-936, July.

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