Gender Wage Gaps Reconsidered: A Structural Approach Using Matched Employer-Employee Data
In this paper I propose and estimate an equilibrium search model using matched employer-employee data to study the extent to which wage differentials between men and women can be explained by differences in productivity, disparities in friction patterns, segregation or wage discrimination. The availability of matched employer-employee data is essential to empirically disentangle differences in workers productivity across groups from differences in wage policies toward those groups. The model features rent splitting, on-the-job search and two-sided heterogeneity in productivity. It is estimated using German microdata. I find that female workers are less productive and more mobile than males. Female workers have on average slightly lower bargaining power than their male counterparts. The total gender wage gap is 42 percent. It turns out that most of the gap, 65 percent, is accounted for by differences in productivity, 17 percent of this gap is driven by segregation while differences in destruction rates explain 9 percent of the total wage-gap. Netting out differences in offer-arrival rates would increase the gap by 13 percent. Due to differences in wage setting, female workers receive wages 9 percent lower than male ones.
|Date of creation:||2009|
|Date of revision:||2010|
|Contact details of provider:|| Postal: |
Web page: http://www.carloalberto.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- M Arellano & O Bover, 1990.
"Another Look at the Instrumental Variable Estimation of Error-Components Models,"
CEP Discussion Papers
dp0007, Centre for Economic Performance, LSE.
- Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
- Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010.
"Rising Wage Inequality, the Decline of Collective Bargaining, and the Gender Wage Gap,"
IZA Discussion Papers
4911, Institute for the Study of Labor (IZA).
- Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," Labour Economics, Elsevier, vol. 17(5), pages 835-847, October.
- Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," ZEW Discussion Papers 10-014, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Becker, Gary S, 1973. "A Theory of Marriage: Part I," Journal of Political Economy, University of Chicago Press, vol. 81(4), pages 813-46, July-Aug..
When requesting a correction, please mention this item's handle: RePEc:cca:wpaper:116. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Giovanni Bert)
If references are entirely missing, you can add them using this form.