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The Gender Wage Gap and Sex Segregation in Finland


  • Kyyrä, Tomi
  • Korkeamäki, Ossi


This paper investigates how the segregation of women and men into certain occupations, industries, firms and jobs within the firms is reflected in the gender wage gap in the Finnish manufacturing sector. Using matched employer-employee data we evaluate wage differentials between men and women doing the same kind of job for the same employer. This allows us to differentiate between wage differentials caused by human capital differences, wage differentials resulting from labour market segregation and within-job wage differentials. We find that at least half of the gender wage gap can be attributed to labour market segregation while human capital differences by sex account for less than 10 percent.

Suggested Citation

  • Kyyrä, Tomi & Korkeamäki, Ossi, 2003. "The Gender Wage Gap and Sex Segregation in Finland," Discussion Papers 288, VATT Institute for Economic Research.
  • Handle: RePEc:fer:dpaper:288

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    References listed on IDEAS

    1. Nabanita Datta Gupta & Donna S. Rothstein, 2005. "The Impact of Worker and Establishment-level Characteristics on Male-Female Wage Differentials: Evidence from Danish Matched Employee-Employer Data," LABOUR, CEIS, vol. 19(1), pages 1-34, March.
    2. Erica L. Groshen, 1991. "The Structure of the Female/Male Wage Differential: Is It Who You Are, What You Do, or Where You Work?," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 457-472.
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    More about this item


    Gender wage gap; wage discrimination; sex segregation; Labour market; Työmarkkinat; Labor market and policies promoting economic growth; Työmarkkinat ja kasvua tukeva politiikka; J160 - Economics of Gender; Non-labor Discrimination; J310 - Wage Level and Structure; Wage Differentials by Skill; Training; Occupation; etc. (industry; schooling; experience; tenure; cohort; etc.); J700 - Labor Discrimination: General;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing


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