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The Gender Pay Gap in German Manufacturing: How Exporters Drive Wage Equality Trends

Author

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  • Riccarda Rosenball

    (University of Graz, Austria)

Abstract

This study examines the gender pay gap in West Germany's manufacturing sector using linked employer-employee data. The gender pay gap has nearly halved for exporting firms since 1993 - a decline that is much smaller for non-exporting firms. Long-term exporters employ a large share of the workforce and drive trends across the entire sector. Some of the largest exporting industries, such as vehicle manufacturing, show the lowest gender pay gaps. I show that the decline in the gender pay gap of exporters is driven by the increasing representation of women in high-paying positions. Tracking the gender pay gap over the first 10 to 15 years of employees' careers reveals that this decline is largely due to a growing share of highly educated women in the workforce, along with stronger opportunities for career advancement for women. Providing women with early career advancement opportunities is key to breaking the glass ceiling and reducing persistent gender pay disparities.

Suggested Citation

  • Riccarda Rosenball, 2025. "The Gender Pay Gap in German Manufacturing: How Exporters Drive Wage Equality Trends," Graz Economics Papers 2025-08, University of Graz, Department of Economics.
    • Handle: RePEc:grz:wpaper:2025-08
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    References listed on IDEAS

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    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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