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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. 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.
    2. Yun, Myeong-Su, 2006. "Revisiting Inter-Industry Wage Differentials and the Gender Wage Gap: An Identification Problem," IZA Discussion Papers 2427, IZA Network @ LISER.
    3. 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.
    4. Maury Gittleman & Brooks Pierce, 2011. "Inter-Industry Wage Differentials Job Content and Unobserved Ability," ILR Review, Cornell University, ILR School, vol. 64(2), pages 356-374, January.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Frédéric Palomino & Eloïc-Anil Peyrache, 2010. "Psychological Bias and Gender Wage Gap," Post-Print hal-00911836, HAL.
    11. 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.
    12. 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.
    13. 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.
    14. Judith Fields & Edward N. Wolff, 1997. "Gender Wage Differentials, Affirmative Action, and Employment Growth on the Industry Level," Economics Working Paper Archive wp_186, Levy Economics Institute.
    15. 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.
    16. Peter Dorman & Paul Hagstrom, 1998. "Wage Compensation for Dangerous Work Revisited," ILR Review, Cornell University, ILR School, vol. 52(1), pages 116-135, October.
    17. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS

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