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Gender Differences in Managerial Compensation - Evidences from Denmark

This paper examines the gender earnings gap at the executive level on a unique data set of Danish executives in the period 1992-1995. Ordinary wage equations show that the wage gap disappears when controlling for “Who you are”, “Where you work” and “What you do”. Additionally, decomposition into inter- and intra-occupational differences shows that two thirds of the wage gap are due to differences between occupations. Individual-specific characteristics contribute negatively to the wage gap, i.e. in favour of women. Decomposing by real authority level shows a larger unexplained part of the wage gap. Real authority is more discriminating than formal authority.

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File URL: http://www.hha.dk/nat/WPER/01-4_ml.pdf
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Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number 01-4.

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Length: 27 pages
Date of creation: 01 Jan 2001
Date of revision:
Handle: RePEc:hhs:aareco:2001_004
Contact details of provider: Postal:
The Aarhus School of Business, Prismet, Silkeborgvej 2, DK 8000 Aarhus C, Denmark

Phone: +45 89 486396
Fax: +45 8615 5175
Web page: http://www.asb.dk/departments/nat.aspx

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  1. 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.
  2. Erikson, T. & Lausten, M., 1997. "Managerial Pay and Firm Performance: Danish Evidence," Papers 97-11, Aarhus School of Business - Department of Economics.
  3. Randall S. Brown & Marilyn Moon & Barbara S. Zoloth, 1980. "Incorporating Occupational Attainment in Studies of Male-Female Earnings Differentials," Journal of Human Resources, University of Wisconsin Press, vol. 15(1), pages 3-28.
  4. repec:ner:ucllon:http://discovery.ucl.ac.uk/17678/ is not listed on IDEAS
  5. Lausten, M., 1998. "CEO Turnover, Firm Performance and Corporate Governance," Papers 98-10, Aarhus School of Business - Department of Economics.
  6. 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.
  7. Aghion, Philippe & Tirole, Jean, 1997. "Formal and Real Authority in Organizations," Journal of Political Economy, University of Chicago Press, vol. 105(1), pages 1-29, February.
  8. Murphy, Kevin J., 1999. "Executive compensation," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 38, pages 2485-2563 Elsevier.
  9. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," NBER Working Papers 7732, National Bureau of Economic Research, Inc.
  10. Gubta, Nabanita Datta & Oaxaca, Ronald L. & Smith, Nina, 2002. "Swimming Upstream, Floating Downstream: Trends in the U.S. and Danish Gender Wage Gaps," CLS Working Papers 01-6, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
  11. Miller, Paul W, 1987. "The Wage Effect of the Occupational Segregation of Women in Britain," Economic Journal, Royal Economic Society, vol. 97(388), pages 885-96, December.
  12. Marianne Bertrand & Kevin F. Hallock, 2000. "The Gender Gap in Top Corporate Jobs," NBER Working Papers 7931, National Bureau of Economic Research, Inc.
  13. Sherwin Rosen, 1990. "Contracts and the Market for Executives," NBER Working Papers 3542, National Bureau of Economic Research, Inc.
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