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The Gender Wage Gap in Developed Countries

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  • Astrid Kunze

Abstract

Despite the increased attachment of women to the labour force in nearly all developed countries, a stubborn gender pay gap remains. This chapter provides a review of the economics literature on the gender wage gap, with an emphasis on developed countries. We begin with an overview of the trends in the gender differences in wages and employment rates. We then review methods used to decompose the gender wage gap and the results from such decompositions. We discuss how trends and differences in the gender wage gap across countries can be understood in light of non-random selection and human capital differences. We then review the evidence on demand-side factors used to explain the existing gender wage gap and then discuss occupational segregation. The chapter concludes with suggestions for further research.

Suggested Citation

  • Astrid Kunze, 2017. "The Gender Wage Gap in Developed Countries," CESifo Working Paper Series 6529, CESifo.
    • Handle: RePEc:ces:ceswps:_6529
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp6529.pdf
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    Cited by:

    1. René Böheim & Marian Fink & Silvia Rocha-Akis & Christine Zulehner, 2017. "Die Entwicklung geschlechtsspezifischer Lohnunterschiede in Österreich," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(9), pages 713-725, September.
    2. Nikolaos Theodoropoulos & John Forth & Alex Bryson, 2019. "Are Women Doing It For Themselves? Gender Segregation and the Gender Wage Gap," DoQSS Working Papers 19-07, Quantitative Social Science - UCL Social Research Institute, University College London.
    3. Andreas Kuhn & Stefan C. Wolter, 2023. "The strength of gender norms and gender‐stereotypical occupational aspirations among adolescents," Kyklos, Wiley Blackwell, vol. 76(1), pages 101-124, February.
    4. Biewen, Martin & Fitzenberger, Bernd & Seckler, Matthias, 2020. "Counterfactual quantile decompositions with selection correction taking into account Huber/Melly (2015): An application to the German gender wage gap," Labour Economics, Elsevier, vol. 67(C).
    5. Li, Jiang & Dostie, Benoit & Simard-Duplain, Gaëlle, 2020. "What Is the Role of Firm-Specific Pay Policies on the Gender Earnings Gap in Canada?," IZA Discussion Papers 13907, Institute of Labor Economics (IZA).
    6. Fuchs, Michaela & Rossen, Anja & Weyh, Antje & Wydra-Somaggio, Gabriele, 2019. "Why do women earn more than men in some regions? : Explaining regional differences in the gender pay gap in Germany," IAB-Discussion Paper 201911, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Tsou, Meng-Wen & Yang, Chih-Hai, 2019. "Does gender structure affect firm productivity? Evidence from China," China Economic Review, Elsevier, vol. 55(C), pages 19-36.
    8. Assaf Rotman & Hadas Mandel, 2023. "Gender-Specific Wage Structure and the Gender Wage Gap in the U.S. Labor Market," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(2), pages 585-606, January.
    9. Joana Passinhas & Isabel Proença, 2020. "Measuring the gender disparities in unemployment dynamics during the recession: evidence from Portugal," Applied Economics, Taylor & Francis Journals, vol. 52(6), pages 623-636, February.
    10. Gashi Ardiana & Adnett Nick, 2020. "Are Women Really Paid More than Men in Kosovo? Unpicking the Evidence," South East European Journal of Economics and Business, Sciendo, vol. 15(2), pages 83-95, December.
    11. Wifo, 2017. "WIFO-Monatsberichte, Heft 9/2017," WIFO Monatsberichte (monthly reports), WIFO, vol. 90(9), September.

    More about this item

    Keywords

    wages; gender wage gap; wage differentials; labor force participation; discrimination; human capital investment; non-random selection; developed countries;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • 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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