Explaining Gender Wage Differentials: Findings from a Random Effects Model
In this paper we evaluate the extent to which the gender wage gap in the Finnish manufacturing sector is attributable to within-job wage differentials, sex differences in individual qualifications, and disproportionate concentration of women in lower-paying firms and lower-paying jobs within firms. We use matched employer-employee data to compare wage differentials between similarly qualified female and male workers who are doing the same job for the same employer. Our modelling approach employs a nested random effects specification to account for the hierarchical grouped structure of the underlying data. White-collar women are found to earn 22% less on average than their male counterparts do. Among blue-collar workers, women?s mean wage is 16% lower than men?s mean wage. The major part of the gender wage gap of white-collar workers results from sex segregation among jobs within firms. By contrast, most of the gap of blue-collar workers is attributable to sex segregation among firms. Unexplained within-job wage differentials account for a quarter of the overall gap of white-collar workers and one-fifth of the overall gap of blue-collar workers.
|Date of creation:||18 Dec 2003|
|Date of revision:|
|Contact details of provider:|| Postal: Arkadiankatu 7, P.O. Box 1279, FI-00101 Helsinki|
Phone: +358 295 519 400
Fax: +358 295 519 599
Web page: http://www.vatt.fi/
More information through EDIRC
|Order Information:|| Email: |
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.:
- Francine D. Blau & Lawrence M. Kahn, 2000.
"Gender Differences in Pay,"
Journal of Economic Perspectives,
American Economic Association, vol. 14(4), pages 75-99, Fall.
- 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,"
CEIS, vol. 19(1), pages 1-34, 03.
- Gubta, Nabanita Datta & Rothstein, Donna S., 2001. "The Impact of Worker and Establishment-level Characteristics on Male-Female Wage Differentials: Evidence from Danish Matched Employee-Employer Data," CLS Working Papers 01-9, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
- Davis, Peter, 2002. "Estimating multi-way error components models with unbalanced data structures," Journal of Econometrics, Elsevier, vol. 106(1), pages 67-95, January.
- Kenneth R Troske & Kimberly N Bayard & Judith Hellerstein & David Neumark, 1998.
"New Evidence On Sex Segregation And Sex Differences In Wages From Matched Employee-Employer Data,"
98-18, Center for Economic Studies, U.S. Census Bureau.
- Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 2003. "New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee-Employer Data," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 887-922, October.
- Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 1999. "New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee-Employer Data," NBER Working Papers 7003, National Bureau of Economic Research, Inc.
- Joseph G. Altonji & Rebecca M. Blank, .
"Race and Gender in the Labor Market,"
IPR working papers
98-18, Institute for Policy Resarch at Northwestern University.
- 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.
- Erica L. Groshen, 1987. "The structure of the female/male wage differential: is it who you are, what you do, or where you work?," Working Paper 8708, Federal Reserve Bank of Cleveland.
- H. Baltagi, Badi & Heun Song, Seuck & Cheol Jung, Byoung, 2001. "The unbalanced nested error component regression model," Journal of Econometrics, Elsevier, vol. 101(2), pages 357-381, April.
When requesting a correction, please mention this item's handle: RePEc:fer:dpaper:320. 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: (Anita Niskanen)
If references are entirely missing, you can add them using this form.