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Using Firm-Level Data to Assess Gender Wage Discrimination in the Belgian Labour Market

  • D. BOROWCZYK MARTINS

    ()

    (University of BristoL, Department of Economics)

  • V. VANDENBERGHE

    ()

    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

In this paper we explore a matched employer-employee data set to investigate the presence of gender wage discrimination in the Belgian private economy labour market. We identify and measure gender wage discrimination from firm-level data using a labour index decomposition pioneered by Hellerstein and Neumark (1995), which allows us to compare direct estimates of a gender productivity differential with those of a gender labour costs differential. We take advantage of the panel structure of the data set and identify gender wage discrimination from within-firm variation. Moreover, inspired by recent developments in the production function estimation literature, we address the problem of endogeneity in input choice using a structural production function estimator (Levinsohn and Petrin, 2003). Our results suggest that there is no gender wage discrimination inside private firms located in Belgium.

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Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2010007.

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Length: 37
Date of creation: 16 Mar 2010
Date of revision:
Handle: RePEc:ctl:louvir:2010007
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