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The Gender Gap in Earnings

Author

Listed:
  • ITA G. G. KREFT

    (California State University)

  • JAN de LEEUW

    (University of California, Los Angeles)

Abstract

The gender income gap is a much debated subject both at an analytical and economic level. This article considers both, but emphasizes the different ways the data can be analyzed. The authors show that a hierarchical linear model is the best way to evaluate male-female wage differentials. Both interindustry and intraindustry wage disparities between men and women are measured by using a technique that assumes that observations within the same industry have correlated error terms. By simultaneously testing human capital factors and environmental factors, the analysis model serves as a link between theory and empirical analysis. The results show that the wage differences are larger in some industries than in others, so that it can be assumed that a gender income gap is not only a function of individual differences in qualification, but also differences between industries. The between-industry differences in gender income gaps contradict the hypothesis that gender income differential is largely due to female work preferences and the resulting segregation.

Suggested Citation

  • ITA G. G. KREFT & JAN de LEEUW, 1994. "The Gender Gap in Earnings," Sociological Methods & Research, , vol. 22(3), pages 319-341, February.
    • Handle: RePEc:sae:somere:v:22:y:1994:i:3:p:319-341
    DOI: 10.1177/0049124194022003003
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    References listed on IDEAS

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