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Hidden in Plain Sight: Occupational Structure and the Gender Wage Gap

Author

Listed:
  • Riccarda Rosenball

    (Department of Economics, University of Graz)

  • Tobias Eibinger

    (Department of Economics, University of Graz)

  • Joern Kleinert

    (Department of Economics, University of Graz)

  • Ismir Mulalic

    (Department of Economics, Copenhagen Business School)

Abstract

This paper studies the role of occupational segregation in shaping gender differences in firm sorting and wages. We show theoretically and in simulations that standard AKM models that omit occupations misattribute part of occupation-specific wage premia to worker and firm effects, thereby inflating the gender pay gap. Using Danish register data, we find that accounting for occupations reduces the estimated contribution of firm sorting by up to 30%. Occupational segregation itself is of comparable importance to firm sorting in explaining the gender gap. Our findings suggest that gender differences in firm sorting are closely linked to occupational and industry segregation.

Suggested Citation

  • Riccarda Rosenball & Tobias Eibinger & Joern Kleinert & Ismir Mulalic, 2026. "Hidden in Plain Sight: Occupational Structure and the Gender Wage Gap," Graz Economics Papers 2026-11, University of Graz, Department of Economics.
    • Handle: RePEc:grz:wpaper:2026-11
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    Keywords

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    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General
    • J81 - Labor and Demographic Economics - - Labor Standards - - - Working Conditions

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