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A distribution-sensitive examination of the gender wage gap in Germany

Author

Listed:
  • Ekaterina Selezneva

    (Institut for East and Southeast European Studies)

  • Philippe Van Kerm

    (Luxembourg Institute of Socio-Economic Research)

Abstract

This paper provides a new examination of the gender pay gap for Germany based on a family of distribution-sensitive indicators. Wage distributions for men and women do not only differ by a fixed constant; differences are more complex. We show that focusing on the bottom of the wage distribution reveals a larger gender gap. Our distribution-sensitive analysis can also be used to study whether the statistical disadvantage of women in average pay might be ‘offset’ by lower inequality. Over a broad range of plausible preferences over inequality, we show however that ‘inequality-adjusted’ estimates of the gap can be up to three times higher than standard inequality-neutral measures in Eastern Germany and up to fifty percent higher in Western Germany. Using preference parameters elicited from a hypothetical risky investment question in our sample, inequality-adjusted gender gap measures turn out to be close to those upper bounds.

Suggested Citation

  • Ekaterina Selezneva & Philippe Van Kerm, 2016. "A distribution-sensitive examination of the gender wage gap in Germany," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(1), pages 21-40, March.
    • Handle: RePEc:spr:joecin:v:14:y:2016:i:1:d:10.1007_s10888-016-9320-z
    DOI: 10.1007/s10888-016-9320-z
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