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Gender wage gap across the distribution: What is the role of within- and between-firm effects?

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  • Kaya Ezgi

    (Cardiff Business School, Cardiff University, Aberconway Building, Colum Drive, Cardiff, CF10 3EU, UK.)

Abstract

This paper studies the role of within- and between-firm effects on the gender wage gap (GWG). Using linked employer–employee data for Turkey for 2006 and 2014, we show that the wage gap among comparable men and women is much wider within establishments than between establishments. Our distributional analysis shows a more pronounced gap among highly paid workers, consistent with the presence of a glass-ceiling effect. This effect, however, is more apparent within establishments than between establishments, and it is the former that drives the economy-wide glass ceiling that women face. We also find that between 2006 and 2014, the GWG in Turkey widened at all points in the wage distribution, and that this widening was more pronounced within establishments than between establishments.

Suggested Citation

  • Kaya Ezgi, 2021. "Gender wage gap across the distribution: What is the role of within- and between-firm effects?," IZA Journal of Development and Migration, Sciendo & Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 12(1), pages 1-49, January.
  • Handle: RePEc:vrs:izajdm:v:12:y:2021:i:1:p:49:n:3
    DOI: 10.2478/izajodm-2021-0014
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    2. Jones, Melanie K. & Kaya, Ezgi, 2022. "Organisational Gender Pay Gaps in the UK: What Happened Post-transparency?," IZA Discussion Papers 15342, Institute of Labor Economics (IZA).
    3. Jones, Melanie & Kaya, Ezgi, 2022. "The UK Gender Pay Gap: Does Firm Size Matter?," GLO Discussion Paper Series 1149, Global Labor Organization (GLO).

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    More about this item

    Keywords

    gender wage gap; within- and between-establishments; wage distribution;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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