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Drivers behind the diverging gender patterns of wage inequality

Author

Listed:
  • Oliver, Xisco

    (Department of Applied Economics, Universitat de les Illes Balears, Palma de Mallorca, Spain ; University of the Balearic Islands and EQUALITAS, Palma, Spain)

  • Sard, Maria

    (University of the Balearic Islands, Palma, Spain)

Abstract

"This paper examines wage inequality in Spain across the economic cycle of 2006–2018. Employing the Firpo, Fortin, and Lemieux decomposition method, we analyze how differences in worker, firm, and job characteristics impact wage inequality evolution. Drawing on data from the Spanish Wage Structure Survey, our analysis reveals a decline in wage inequality over the entire economic cycle, with a more pronounced reduction among females. However, this decrease in wage inequality cannot be attributed to changes in characteristics (composition effect), as they increased. Our analysis indicates that rewards associated with these characteristics (wage structure effect) primarily drove the reduction in wage inequality. Nonetheless, gender disparities become evident when exploring the contribution of the primary explanatory variables. We find no significant correlation between the economic cycle and the evolution of wage inequality. J31; C21 and D63" (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Oliver, Xisco & Sard, Maria, 2025. "Drivers behind the diverging gender patterns of wage inequality," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 59, pages 1-028.
    • Handle: RePEc:iab:iabjlr:v:59:i::p:a028
    DOI: 10.1186/s12651-025-00415-z
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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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