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Glass Ceiling or Sticky Floor? Exploring the Australian Gender Pay Gap using Quantile Regression and Counterfactual Decomposition Methods

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  • Hiau Joo Kee

Abstract

Using the HILDA survey, this paper analyses Australian gender wage gaps in both public and private sectors across the wage distribution. Quantile Regression (QR) techniques are used to control for various characteristics at different points of the wage distributions. Counterfactual decomposition analysis, adjusted for the QR framework, is utilised to examine if the gap is attributed to differences in gender characteristic, or differing returns between genders. The main finding is that a strong glass ceiling effect is detected only in the private sector. Secondly, the acceleration in the gender gap across the distribution does not vanish even after extensive controls. This suggests that the observed wage gap is a result of differences in returns to genders. By focussing only on the mean gender wage gap, substantial variations of the gap will be hidden.

Suggested Citation

  • Hiau Joo Kee, 2005. "Glass Ceiling or Sticky Floor? Exploring the Australian Gender Pay Gap using Quantile Regression and Counterfactual Decomposition Methods," CEPR Discussion Papers 487, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    • Handle: RePEc:auu:dpaper:487
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    File URL: https://www.cbe.anu.edu.au/researchpapers/CEPR/DP487.pdf
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    References listed on IDEAS

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    Cited by:

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    3. Gudrun Biffl & Thomas Leoni, 2008. "Arbeitsbedingte Erkrankungen. Schätzung der gesamtwirtschaftlichen Kosten mit dem Schwerpunkt auf physischen Belastungen," WIFO Studies, WIFO, number 35099, April.
    4. Olga Takacs & Janos Vincze, 2018. "The within-job gender pay gap in Hungary," CERS-IE WORKING PAPERS 1834, Institute of Economics, Centre for Economic and Regional Studies.
    5. Pendakur, Krishna & Pendakur, Ravi & Woodcock, Simon, 2006. "Glass Ceilings and Sticky Floors: A Representation Index," MPRA Paper 133, University Library of Munich, Germany.
    6. Etoundi Atenga, Eric Martial & Chameni Nembua, Célestin & Meva Avoulou, Henri Joel, 2013. "Ecarts de salaire entre hommes et femmes au Cameroun : Discrimination ou Capital humain ? Une approche par sous groupes [Gender wage gap : Discrimination or Human Capital? A subgroup approach]," MPRA Paper 64761, University Library of Munich, Germany, revised Aug 2014.

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    More about this item

    Keywords

    glass ceiling; sticky floor; quantile regression; public sector;
    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
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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