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The Gender Wage Gap and Sex Segregation in Finland


  • Ossi Korkeamäki

    () (Government Institute for Economic Research, Finland)

  • Tomi Kyyrä

    () (Government Institute for Economic Research, Finland)


We investigate how segregation of women and men into certain occupations, industries, firms and jobs within firms is reflected in the gender wage gap in the Finnish manufacturing sector. Using a matched employer-employee data we evaluate wage differentials between men and women in similar occupation with the same employer. This allows us to separate the effects of labour market segregation and differences in human capital and estimate the unexplained within-job wage gap. We find that at least half of the gender wage gap arises from labour market segregation while human capital differences by sex account for less than 10 per cent.

Suggested Citation

  • Ossi Korkeamäki & Tomi Kyyrä, 2005. "The Gender Wage Gap and Sex Segregation in Finland," Finnish Economic Papers, Finnish Economic Association, vol. 18(2), pages 57-71, Autumn.
  • Handle: RePEc:fep:journl:v:18:y:2005:i:2:p:57-71

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    References listed on IDEAS

    1. Nabanita Datta Gupta & Donna S. Rothstein, 2005. "The Impact of Worker and Establishment-level Characteristics on Male-Female Wage Differentials: Evidence from Danish Matched Employee-Employer Data," LABOUR, CEIS, vol. 19(1), pages 1-34, March.
    2. Erica L. Groshen, 1991. "The Structure of the Female/Male Wage Differential: Is It Who You Are, What You Do, or Where You Work?," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 457-472.
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    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing


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