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

Author

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  • D. BOROWCZYK MARTINS

    () (University of BristoL, Department of Economics)

  • V. VANDENBERGHE

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

Abstract

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.

Suggested Citation

  • D. Borowczyk Martins & V. Vandenberghe, 2010. "Using Firm-Level Data to Assess Gender Wage Discrimination in the Belgian Labour Market," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2010007, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  • Handle: RePEc:ctl:louvir:2010007
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2010007.pdf
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    Cited by:

    1. V. Vandenberghe, 2011. "Boosting the Employment Rate of Older Men and Women," De Economist, Springer, vol. 159(2), pages 159-191, June.
    2. Lovász, Anna & Rigó, Mariann, 2013. "Vintage effects, aging and productivity," Labour Economics, Elsevier, vol. 22(C), pages 47-60.

    More about this item

    Keywords

    labour productivity; wages; gender discrimination; structural production function estimation; panel data;

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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