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Interindustry Wage Differentials and the Gender Wage Gap

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  • Judith Fields
  • Edward N. Wolff

Abstract

Using data from the March 1988 Current Population Survey, the authors find that the wages of female workers differ significantly by industry, even when the analysis controls for workers' productivity-related characteristics. Although these interindustry wage differentials are at least as large as men's and are highly correlated with them as well, there are statistically significant differences between the two. Of the overall gender wage gap (the average female worker earns about 65% as much as the average male worker), 12–22% can be explained by differences between the patterns of interindustry wage differentials of men and women and 15–19% by differences in the distribution of male and female workers across industries. Thus, the combined industry effects explain about one-third of the overall gender wage gap.

Suggested Citation

  • Judith Fields & Edward N. Wolff, 1995. "Interindustry Wage Differentials and the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 49(1), pages 105-120, October.
    • Handle: RePEc:sae:ilrrev:v:49:y:1995:i:1:p:105-120
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    Cited by:

    1. Judith Fields & Edward N. Wolff, 1997. "Gender Wage Differentials, Affirmative Action, and Employment Growth on the Industry Level," Macroeconomics 9711005, University Library of Munich, Germany.
    2. Yun, Myeong-Su, 2006. "Revisiting Inter-Industry Wage Differentials and the Gender Wage Gap: An Identification Problem," IZA Discussion Papers 2427, Institute of Labor Economics (IZA).
    3. Judith K. Hellerstein & David Neumark, 2006. "Using Matched Employer–Employee Data to Study Labor Market Discrimination," Chapters, in: William M. Rodgers III (ed.), Handbook on the Economics of Discrimination, chapter 2, Edward Elgar Publishing.
    4. Beyza Ural & William Horrace & Jin Hwa Jung, 2009. "Inter-industry gender wage gaps by knowledge intensity: discrimination and technology in Korea," Applied Economics, Taylor & Francis Journals, vol. 41(11), pages 1437-1452.
    5. Brenda Gannon & Robert Plasman & Francois Rycx & Ilan Tojerow, 2007. "Inter-Industry Wage Differentials and the Gender Wage Gap: Evidence from European Countries," The Economic and Social Review, Economic and Social Studies, vol. 38(1), pages 135-155.
    6. Heinze, Anja, 2009. "Earnings of Men and Women in Firms with a Female Dominated Workforce: What Drives the Impact of Sex Segregation on Wages?," ZEW Discussion Papers 09-012, ZEW - Leibniz Centre for European Economic Research.
    7. Abdallah Dah & Ali Fakih, 2016. "Decomposing Gender Wage Differentials Using Quantile Regression: Evidence from the Lebanese Banking Sector," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 22(2), pages 171-185, May.
    8. Chuang, Hwei-Lin & Lin, Eric S. & Chiu, Shih-Yung, 2018. "The gender wage gap in the financial industry: Evidence from the interindustry ranking," International Review of Economics & Finance, Elsevier, vol. 55(C), pages 246-258.
    9. Myeong-Su Yun & Eric S. Lin, 2015. "Alternative Estimator for Industrial Gender Wage Gaps: A Normalized Regression Approach," Pacific Economic Review, Wiley Blackwell, vol. 20(4), pages 569-587, October.
    10. Eleonora Matteazzi & Ariane Pailhé & Anne Solaz, 2013. "Does Part-Time Employment Widen the Gender Wage Gap? Evidence from Twelve European Countries," Working Papers 293, ECINEQ, Society for the Study of Economic Inequality.
    11. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
    12. Min-Ning Lee & Yi-Fang Yang & Lee-Wen Yang & Yahn-Shir Chen, 2017. "Gender Pay Gap And Discrimination In Taiwanese Auditing Industry," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 11(3), pages 1-11.
    13. Frédéric Palomino & Eloïc-Anil Peyrache, 2010. "Psychological Bias and Gender Wage Gap," Post-Print hal-00911836, HAL.
    14. Paul Sicilian & Adam Grossberg, 2001. "Investment in human capital and gender wage differences: evidence from the NLSY," Applied Economics, Taylor & Francis Journals, vol. 33(4), pages 463-471.
    15. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS

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