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A distribution-sensitive examination of the gender wage gap in Germany

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  • Ekaterina Selezneva

  • Philippe Van Kerm

Abstract

This paper provides a new examination of the gender pay gap for Germany based on a family of distribution-sensitive indicators. Wage distributions for men and women do not only differ by a fixed constant; differences are more complex. We show that focusing on the bottom of the wage distribution reveals a larger gender gap. Our distribution-sensitive analysis can also be used to study whether the statistical disadvantage of women in average pay might be ‘offset’ by lower inequality. Over a broad range of plausible preferences over inequality, we show however that ‘inequality-adjusted’ estimates of the gap can be up to three times higher than standard inequality-neutral measures in Eastern Germany and up to fifty percent higher in Western Germany. Using preference parameters elicited from a hypothetical risky investment question in our sample, inequality-adjusted gender gap measures turn out to be close to those upper bounds. Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • Ekaterina Selezneva & Philippe Van Kerm, 2016. "A distribution-sensitive examination of the gender wage gap in Germany," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(1), pages 21-40, March.
    • Handle: RePEc:kap:jecinq:v:14:y:2016:i:1:p:21-40
    DOI: 10.1007/s10888-016-9320-z
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    Cited by:

    1. Kobus, Martyna & Kapera, Marek & Maasoumi, Esfandiar, 2024. "Gap in many dimensions: Application to gender," Labour Economics, Elsevier, vol. 89(C).
    2. de la Vega, Noa, 2022. "The differential effect of childbirth on men's and women's careers," Labour Economics, Elsevier, vol. 78(C).
    3. Santiago Pindado & Carlos Pindado & Javier Cubas, 2017. "Fréchet Distribution Applied to Salary Incomes in Spain from 1999 to 2014. An Engineering Approach to Changes in Salaries’ Distribution," Economies, MDPI, vol. 5(2), pages 1-19, May.
    4. M. Costa, 2019. "The evaluation of gender income inequality by means of the Gini index decomposition," Working Papers wp1130, Dipartimento Scienze Economiche, Universita' di Bologna.
    5. Maike Hohberg & Katja Landau & Thomas Kneib & Stephan Klasen & Walter Zucchini, 2018. "Vulnerability to poverty revisited: Flexible modeling and better predictive performance," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 16(3), pages 439-454, September.
    6. Schmid, Ramona, 2022. "Mind the gap: Effects of the national minimum wage on the gender wage gap in Germany," Hohenheim Discussion Papers in Business, Economics and Social Sciences 06-2022, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    7. Hoy, Michael & Huang, Rachel J., 2017. "Measuring discrimination using principles of stochastic dominance," Journal of Economic Theory, Elsevier, vol. 167(C), pages 39-52.
    8. Ayal Kimhi & Nirit Hanuka-Taflia, 2019. "What drives the convergence in male and female wage distributions in Israel? A Shapley decomposition approach," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(3), pages 379-399, September.
    9. Averkamp, Dorothée, 2024. "The Gender Wage Gap, Labor-Market Experience, and Family Choices: Lessons from East Germany?," VfS Annual Conference 2024 (Berlin): Upcoming Labor Market Challenges 302347, Verein für Socialpolitik / German Economic Association.
    10. Männasoo, Kadri, 2022. "Working hours and gender wage differentials: Evidence from the American Working Conditions Survey," Labour Economics, Elsevier, vol. 76(C).

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