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Gender wage gap studies: consistency and decomposition

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  • Astrid Kunze

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Abstract

This paper reviews the empirical literature on the gender wage gap, with particular attention given to the identification of the key parameters in human capital wage regression models. This is of great importance in the literature for two main reasons. First, the main explanatory variables in the wage model, i.e., measures of work experience and time-out-of-work, are endogenous. As a result, applying traditional estimators may lead to inconsistent parameter estimates. Second, empirical evidence on the gender wage gap hinges on estimates of the parameters of interest. Accordingly, their economic meaning may be limited by restrictive assumptions included in wage models. This challenges both researchers and policymakers who require precise measures of the gender wage gap in order to create and enforce efficient equality policies. Copyright Springer-Verlag 2008

Suggested Citation

  • Astrid Kunze, 2008. "Gender wage gap studies: consistency and decomposition," Empirical Economics, Springer, vol. 35(1), pages 63-76, August.
  • Handle: RePEc:spr:empeco:v:35:y:2008:i:1:p:63-76 DOI: 10.1007/s00181-007-0143-4
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    Cited by:

    1. Christl, Michael & Köppl-Turyna, Monika, 2017. "Gender wage gap and the role of skills: evidence from PIAAC dataset," GLO Discussion Paper Series 63, Global Labor Organization (GLO).
    2. René Böheim & Klemens Himpele & Helmut Mahringer & Christine Zulehner, 2013. "The gender wage gap in Austria: eppur si muove!," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 40(4), pages 585-606, November.
    3. Christofides, Louis N. & Polycarpou, Alexandros & Vrachimis, Konstantinos, 2013. "Gender wage gaps, ‘sticky floors’ and ‘glass ceilings’ in Europe," Labour Economics, Elsevier, vol. 21(C), pages 86-102.
    4. Nils Braakmann, 2010. "Neo-Nazism and discrimination against foreigners: A direct test of taste discrimination," Working Paper Series in Economics 165, University of Lüneburg, Institute of Economics.
    5. repec:eei:journl:v:60:y:2017:i:1:p:28-51 is not listed on IDEAS
    6. Elke Holst & Anne Busch, 2009. "Der "Gender Pay Gap" in Führungspositionen der Privatwirtschaft in Deutschland," SOEPpapers on Multidisciplinary Panel Data Research 169, DIW Berlin, The German Socio-Economic Panel (SOEP).
    7. Christofides, Louis N. & Polycarpou, Alexandros & Vrachimis, Konstantinos, 2010. "The Gender Wage Gaps, 'Sticky Floors' and 'Glass Ceilings' of the European Union," IZA Discussion Papers 5044, Institute for the Study of Labor (IZA).
    8. Danijel Nestic, 2010. "The Gender Wage Gap in Croatia – Estimating the Impact of Differing Rewards by Means of Counterfactual Distributions," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 12(1), pages 83-119, April.
    9. Busch, Anne & Holst, Elke, 2013. "Geschlechtsspezifische Verdienstunterschiede bei Führungskräften und sonstigen Angestellten in Deutschland: Welche Relevanz hat der Frauenanteil im Beruf?," EconStor Open Access Articles, ZBW - German National Library of Economics, pages 315-336.
    10. Aleksandra Majchrowska & Paweł Strawiński & Karolina Konopczak & Agnieszka Skierska, 2014. "Why are women paid less than men? An investigation into gender wage gap in Poland," Working Papers 2014-31, Faculty of Economic Sciences, University of Warsaw.
    11. Boris Kaiser, 2013. "Decomposing Differences in Arithmetic Means: A Doubly-Robust Estimation Approach," Diskussionsschriften dp1308, Universitaet Bern, Departement Volkswirtschaft.
    12. Gevrek, Z. Eylem & Seiberlich, Ruben R., 2014. "Semiparametric decomposition of the gender achievement gap: An application for Turkey," Labour Economics, Elsevier, vol. 31(C), pages 27-44.
    13. Aleksandra Majchrowska & Pawel Strawinski & Karolina Konopczak & Agnieszka Skierska, 2015. "Gender wage gap by occupational groups in Poland," Lodz Economics Working Papers 3/2015, University of Lodz, Faculty of Economics and Sociology.
    14. Sloczynski, Tymon, 2015. "Average Wage Gaps and Oaxaca–Blinder Decompositions," IZA Discussion Papers 9036, Institute for the Study of Labor (IZA).
    15. Martin Huber, 2015. "Causal Pitfalls in the Decomposition of Wage Gaps," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 33(2), pages 179-191, April.
    16. Anne Busch & Elke Holst, 2009. "Glass Ceiling Effect and Earnings: The Gender Pay Gap in Managerial Positions in Germany," Discussion Papers of DIW Berlin 905, DIW Berlin, German Institute for Economic Research.
    17. Anne Busch & Elke Holst, 2011. "Gender-Specific Occupational Segregation, Glass Ceiling Effects, and Earnings in Managerial Positions: Results of a Fixed Effects Model," SOEPpapers on Multidisciplinary Panel Data Research 357, DIW Berlin, The German Socio-Economic Panel (SOEP).
    18. Kaya, Ezgi, 2014. "Gender Wage Gap Trends in Europe: The Role of Occupational Allocation and Skill Prices," Cardiff Economics Working Papers E2014/23, Cardiff University, Cardiff Business School, Economics Section.
    19. 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.
    20. Braakmann Nils, 2013. "What Determines Wage Inequality Among Young German University Graduates?," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(2), pages 130-158, April.
    21. repec:spr:jlabre:v:38:y:2017:i:3:d:10.1007_s12122-017-9243-x is not listed on IDEAS
    22. Min Qin & James Brown & Sabu Padmadas & Li Bohua & Qi Jianan & Jane Falkingham, 2016. "Gender Inequalities in Employment and Wage-earning among Economic Migrants in Chinese Cities," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 34(6), pages 175-202, January.
    23. repec:sgh:gosnar:y:2017:i:2:p:29-43 is not listed on IDEAS
    24. Eiji Yamamura, 2017. "Historical education levels and present-day non-cognitive skills," Journal of Economics and Econometrics, Economics and Econometrics Society, pages 28-51.
    25. Eva Spring & Volker Grossmann, 2016. "Does bilateral trust across countries really affect international trade and factor mobility?," Empirical Economics, Springer, pages 103-136.

    More about this item

    Keywords

    Male–female wage differentials; Human capital wage regression model; Model construction and estimation; Wage discrimination; J16; J3; J71;

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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