IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

The Gender Pay Gap across Countries: A Human Capital Approach

  • Solomon W. Polachek
  • Jun Xiang

The gender wage gap varies across countries. For example, among OECD nations women in Australia, Belgium, Italy and Sweden earn 80% as much as males, whereas in Austria, Canada and Japan women earn about 60%. Current studies examining cross-country differences focus on the impact of labor market institutions such as minimum wage laws and nationwide collective bargaining. However, these studies neglect labor market institutions that affect women'slifetime work behavior - a factor crucially important in gender wage gap studies that employ individual data. This paper explicitly concentrates on labor market institutions that are related to female lifetime work that affect the gender wage gap across countries. Using ISSP (International Social Survey Programme), LIS (Luxembourg Income Study) and OECD wage data for 35 countries covering 1970-2002, we show that the gender pay gap is positively associated with the fertilityrate (treated exogenously and endogenously with religion as the instrument), positively associated with the husbandwifeage gap at first marriage, and positively related to the top marginal tax rate, all factors which negatively affect women's lifetime labor force participation. In addition, we show that collective bargaining, as found in previous studies, is negatively associated with the gender pay gap.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.342785.de/diw_sp0227.pdf
Download Restriction: no

Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 227.

as
in new window

Length: 59 p.
Date of creation: 2009
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp227
Contact details of provider: Postal: Mohrenstraße 58, D-10117 Berlin
Phone: xx49-30-89789-671
Fax: xx49-30-89789-109
Web page: http://www.diw.de/en/soep
Email:


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.:

as in new window
  1. Davies, Rhys & Pierre, Gaelle, 2005. "The family gap in pay in Europe: a cross-country study," Labour Economics, Elsevier, vol. 12(4), pages 469-486, August.
  2. Eckstein, Zvi & Wolpin, Kenneth I, 1989. "Dynamic Labour Force Participation of Married Women and Endogenous Work Experience," Review of Economic Studies, Wiley Blackwell, vol. 56(3), pages 375-90, July.
  3. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  4. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S76-S108, Part II, .
  5. Francine D. Blau & Lawrence M. Kahn, 2003. "Understanding International Differences in the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 106-144, January.
  6. Mark Bagnoli & Ted Bergstrom, . "Courtship as a Waiting Game," Papers _030, University of Michigan, Department of Economics.
  7. Claudia Goldin, 1990. "Understanding the Gender Gap: An Economic History of American Women," NBER Books, National Bureau of Economic Research, Inc, number gold90-1, August.
  8. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
  9. Francine D. Blau & Lawrence M. Kahn, 1992. "The Gender Earnings Gap: Some International Evidence," NBER Working Papers 4224, National Bureau of Economic Research, Inc.
  10. Manser, Marilyn & Brown, Murray, 1980. "Marriage and Household Decision-Making: A Bargaining Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 31-44, February.
  11. Weiss, Yoram & Gronau, Reuben, 1981. "Expected Interruptions in Labour Force Participation and Sex-Related Differences in Earnings Growth," Review of Economic Studies, Wiley Blackwell, vol. 48(4), pages 607-19, October.
  12. Jeremy Greenwood & Nezih Guner, 2004. "Marriage and Divorce since World War II: Analyzing the Role of Technological Progress on the Formation of Households," NBER Working Papers 10772, National Bureau of Economic Research, Inc.
  13. Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "The Effects of Competition and Equal Treatment Laws on the Gender Wage Differential," IZA Discussion Papers 822, Institute for the Study of Labor (IZA).
  14. Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "A Meta-Analysis of the International Gender Wage Gap," IZA Discussion Papers 906, Institute for the Study of Labor (IZA).
  15. Polachek, Solomon, 2004. "How the Human Capital Model Explains Why the Gender Wage Gap Narrowed," IZA Discussion Papers 1102, Institute for the Study of Labor (IZA).
  16. Christopher J. Ruhm, 1998. "Parental Leave and Child Health," NBER Working Papers 6554, National Bureau of Economic Research, Inc.
  17. Polachek, Solomon William, 1975. "Differences in Expected Post-school Investments as a Determinant of Market Wage Differentials," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 451-70, June.
  18. Stephen Machin & Alan Manning, 1994. "The Effects of Minimum Wages on Wage Dispersion and Employment: Evidence from the U.K. Wages Councils," ILR Review, Cornell University, ILR School, vol. 47(2), pages 319-329, January.
  19. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  20. Jane Waldfogel, 1998. "Understanding the "Family Gap" in Pay for Women with Children," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 137-156, Winter.
  21. Joshi, Heather & Paci, Pierella & Waldfogel, Jane, 1999. "The Wages of Motherhood: Better or Worse?," Cambridge Journal of Economics, Oxford University Press, vol. 23(5), pages 543-64, September.
  22. Nina Smith & Shirley Dex & Jan Dirk Vlasblom & Tim Callan, 2003. "The effects of taxation on married women's labour supply across four countries," Oxford Economic Papers, Oxford University Press, vol. 55(3), pages 417-439, July.
  23. Myeong-Su Yun, 2009. "Wage Differentials, Discrimination And Inequality: A Cautionary Note On The Juhn, Murphy And Pierce Decomposition Method," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(1), pages 114-122, 02.
  24. Christy Spivey, 2005. "Time off at what price? The effects of career interruptions on earnings," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 59(1), pages 119-140, October.
  25. Gary S. Becker, 1960. "An Economic Analysis of Fertility," NBER Chapters, in: Demographic and Economic Change in Developed Countries, pages 209-240 National Bureau of Economic Research, Inc.
  26. Solomon W. Polachek & John Robst, 2001. "Trends in the Male–Female Wage Gap: The 1980s Compared with the 1970s," Southern Economic Journal, Southern Economic Association, vol. 67(4), pages 869-888, April.
  27. Wayne Simpson, 2000. "Intermittent work activity and earnings," Applied Economics, Taylor & Francis Journals, vol. 32(14), pages 1777-1786.
  28. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, August.
  29. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, vol. 63(250), pages S29-62, Suppl..
  30. Smith, James P & Ward, Michael, 1989. "Women in the Labor Market and in the Family," Journal of Economic Perspectives, American Economic Association, vol. 3(1), pages 9-23, Winter.
  31. Christopher J. Ruhm, 1996. "The Economic Consequences of Parental Leave Mandates: Lessons from Europe," NBER Working Papers 5688, National Bureau of Economic Research, Inc.
  32. Dora L. Costa & Matthew E. Kahn, 2008. "Learning from the Past," NBER Chapters, in: Heroes and Cowards: The Social Face of War National Bureau of Economic Research, Inc.
  33. Weinberger, Catherine & Kuhn, Peter J., 2006. "The Narrowing of the U.S. Gender Earnings Gap, 1959-1999: A Cohort-Based Analysis," IZA Discussion Papers 2007, Institute for the Study of Labor (IZA).
  34. Jacob Mincer & Solomon Polacheck, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 397-431 National Bureau of Economic Research, Inc.
  35. Goldin, Claudia & Polachek, Solomon, 1987. "Residual Differences by Sex: Perspectives on the Gender Gap in Earnings," American Economic Review, American Economic Association, vol. 77(2), pages 143-51, May.
  36. James Gwartney, 2004. "What Have We Learned from the Economic Freedom of the World Index?," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 20(Fall 2004), pages 1-8.
  37. Polachek, Solomon W. & Kim, Moon-Kak, 1994. "Panel estimates of the gender earnings gap : Individual-specific intercept and individual-specific slope models," Journal of Econometrics, Elsevier, vol. 61(1), pages 23-42, March.
  38. Kao, Charng & Polachek, Solomon W & Wunnava, Phanindra V, 1994. "Male-Female Wage Differentials in Taiwan: A Human Capital Approach," Economic Development and Cultural Change, University of Chicago Press, vol. 42(2), pages 351-74, January.
  39. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  40. Suen, Wing, 1997. "Decomposing Wage Residuals: Unmeasured Skill or Statistical Artifact?," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 555-66, July.
  41. Anil Kumar, 2005. "Lifecycle consistent estimation of effect of taxes on female labor supply in the US: evidence from panel data," Working Papers 0504, Federal Reserve Bank of Dallas.
  42. Tadashi Yamada & Tetsuji Yamada, 1984. "Estimation of a Simultaneous Model of Married Women's Labor Force Participation and Fertility in Urban Japan," NBER Working Papers 1362, National Bureau of Economic Research, Inc.
  43. Becker, Gary S, 1985. "Human Capital, Effort, and the Sexual Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S33-58, January.
  44. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
  45. Willis, Robert J, 1973. "A New Approach to the Economic Theory of Fertility Behavior," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages S14-64, Part II, .
  46. Blau, Francine D & Kahn, Lawrence M, 1992. "The Gender Earnings Gap: Learning from International Comparisons," American Economic Review, American Economic Association, vol. 82(2), pages 533-38, May.
  47. Richard B. Freeman & Lawrence F. Katz, 1995. "Differences and Changes in Wage Structures," NBER Books, National Bureau of Economic Research, Inc, number free95-1, August.
  48. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-49, June.
  49. Polachek, Solomon William, 1981. "Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 60-69, February.
  50. Florence Jaumotte, 2003. "Labour Force Participation of Women: Empirical Evidence on The Role of Policy and Other Determinants in OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2003(2), pages 51-108.
  51. Solomon William Polachek, 1975. "Potential Biases in Measuring Male-Female Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 10(2), pages 205-229.
  52. Sakiko Tanaka, 2005. "Parental leave and child health across OECD countries," Economic Journal, Royal Economic Society, vol. 115(501), pages F7-F28, 02.
  53. Baltagi, Badi H & Griffin, James M, 1984. "Short and Long Run Effects in Pooled Models," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(3), pages 631-45, October.
  54. Jacob Mincer & Haim Ofek, 1982. "Interrupted Work Careers: Depreciation and Restoration of Human Capital," Journal of Human Resources, University of Wisconsin Press, vol. 17(1), pages 3-24.
Full references (including those not matched with items on IDEAS)

This item is featured on the following reading lists or Wikipedia pages:

  1. SOEP based publications

When requesting a correction, please mention this item's handle: RePEc:diw:diwsop:diw_sp227. 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: (Bibliothek)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.