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Sources of the Gender Wage Gap in a New Zealand Birth Cohort

Author

Listed:
  • David Fergusson

    () (University of Otago)

  • Sheree J. Gibb

    (University of Otago)

Abstract

The gender wage gap is a well-established finding that has been observed in a range of different societies. This paper examined the sources and composition of the gender wage gap in a New Zealand birth cohort of 30 year-olds. Prior to adjustment for explanatory variables, male wages were 38.0 per cent higher than female wages. After adjustment for human capital endowments, job characteristics and family responsibilities, there remained an unexplained gender wage gap of 11.5 per cent. Decomposition of the gender wage gap revealed that 66.4 per cent of the total gender wage gap could be explained by gender differences in human capital, job characteristics and family factors. These results suggest that, even after accounting for gender differences in a wide range of explanatory variables, males continue to earn significantly higher wages than females.

Suggested Citation

  • David Fergusson & Sheree J. Gibb, 2009. "Sources of the Gender Wage Gap in a New Zealand Birth Cohort," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 12(3), pages 281-298.
  • Handle: RePEc:ozl:journl:v:12:y:2009:i:3:p:281-298
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    Cited by:

    1. Jessica Dye & StephaniƩ Rossouw & Gail Pacheco, 2012. "Well-being of women in New Zealand: The changing landscape," New Zealand Economic Papers, Taylor & Francis Journals, vol. 46(3), pages 273-302, December.

    More about this item

    Keywords

    Wage differentials; Economics of Gender; Human Capital; Skills; Occupational choice;

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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