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Women Labor Market: Gender Pay Gap and Its Determinants / Trh práce žen: Gender pay gap a jeho determinanty [available in Czech only]

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Abstract

This study is concerned with decomposing the gender pay gap in the Czech Republic. It aims not only to compare male and female wage-equations but also to uncover the gender pay gap structure. The decision of many women not to participate in the labor market can be influenced by potentially low wages. Their entry into the labor market could increase the gender pay gap in large measure. The advantage of this study is that it uses a selection method to estimate the male and female wage equations and this enables us to include the impact of non participating individuals. The Oaxaca-Blinder decomposition divides the gender pay gap into several effects, which stem not only from discrimination but also from different male and female characteristics. The combination with the Heckman selection model enables one to separate the sample selection effect, which refers to the potential gender pay gap when non participating individuals enter the labor market. The results of the decomposition confirm the hypothesis that the observed pay gap would increase if non-participating individuals enter the labor market. The study uses data from the new household survey Living Conditions 2005 (EU-SILC), which provides us with a large number of individual characteristics of working as well as non-working individuals, and therefore it enriches the existing empirical literature with new data.

Suggested Citation

  • Martina Mysíková, 2007. "Women Labor Market: Gender Pay Gap and Its Determinants / Trh práce žen: Gender pay gap a jeho determinanty [available in Czech only]," Working Papers IES 2007/13, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Apr 2007.
  • Handle: RePEc:fau:wpaper:wp2007_13
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    File URL: http://ies.fsv.cuni.cz/default/file/download/id/5402
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    Keywords

    gender pay gap; labor market participation; Heckman model; Oaxaca-Blinder decomposition; endowment effect; remuneration effect; sample selection effect;

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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