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Why do women earn more than men in some regions? : Explaining regional differences in the gender pay gap in Germany

Author

Listed:
  • Fuchs, Michaela

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Rossen, Anja

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Weyh, Antje

    (Institute for Employment Research (IAB), Nuremberg, Germany)

  • Wydra-Somaggio, Gabriele

    (Institute for Employment Research (IAB), Nuremberg, Germany)

Abstract

"This paper provides first-time evidence on the magnitude and determinants of regional differences in the gender pay gap (GPG) in Germany. Using a comprehensive data set of all full-time employees, we conduct Oaxaca-Blinder decompositions for Germany and its regions to explain the regional variation of the GPG with theory-based individual, job-related and regional characteristics. Our results provide several novel insights into the regional dimension of the GPG. First, men's wages are more strongly correlated with the regional GPG than those of women, indicating that their wages drive the regional variation in the GPG much more than the wages of women. Second, the decomposition results reveal pronounced differences in the impact of the individual and job-related characteristics between the regions. Whereas job-related characteristics are important in regions with a high GPG, individual characteristics rather come into play in regions with a low or negative GPG. The results underscore the role played by the establishment composition in a region and the kind of jobs provided for the regional GPG. Women earn more than men in regions with a weak local economic structure and the absence of large firms providing well-paid manufacturing jobs. In regions with a high GPG, in contrast, men usually benefit from such jobs. The third result relates to the validity of the theoretical determinants of the GPG in regional respect. In contrast to the clear-cut decomposition results at the national level, at the regional level their validity mainly applies to specific subsets of regions. We conclude that analyses at the national level come too short in precisely explaining the regional variation of the GPG." (Author's abstract, IAB-Doku) ((en))

Suggested Citation

  • Fuchs, Michaela & Rossen, Anja & Weyh, Antje & Wydra-Somaggio, Gabriele, 2019. "Why do women earn more than men in some regions? : Explaining regional differences in the gender pay gap in Germany," IAB-Discussion Paper 201911, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    • Handle: RePEc:iab:iabdpa:201911
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    2. Maik Hamjediers, 2021. "Can Regional Gender Ideologies Account for Variation of Gender Pay Gaps? The Case of Germany," Social Sciences, MDPI, vol. 10(9), pages 1-21, September.
    3. Kajari Saha, 2021. "The China trade shock and the gender wage gap in India: A District-level analysis," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2021-012, Indira Gandhi Institute of Development Research, Mumbai, India.
    4. Rossen, Anja & Fuchs, Michaela & Lawitzky, Corinna & Weyh, Antje, 2019. "Geschlechtsspezifische Lohnunterschiede in Bayern," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Bayern 201903, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Philipp Heß, 2020. "SDG 5 and the Gender Gap in Standardization: Empirical Evidence From Germany," Sustainability, MDPI, vol. 12(20), pages 1-20, October.
    6. Fuchs, Michaela & Lawitzky, Corinna & Rossen, Anja & Weyh, Antje, 2020. "Geschlechtsspezifische Lohnunterschiede in Sachsen-Anhalt," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Sachsen-Anhalt-Thüringen 202001, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Melanie Jones & Ezgi Kaya, 2022. "The gender pay gap: what can we learn from Northern Ireland? [Women’s labour market participation in Northern Ireland: a re-examination of the ‘traditionalism’ argument]," Oxford Economic Papers, Oxford University Press, vol. 74(1), pages 94-114.
    8. Schmid, Ramona, 2022. "Mind the gap: Effects of the national minimum wage on the gender wage gap in Germany," Hohenheim Discussion Papers in Business, Economics and Social Sciences 06-2022, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    9. Schmid, Ramona, 2023. "Mind the Gap: Effects of the National Minimum Wage on the Gender Wage Gap in Germany," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277646, Verein für Socialpolitik / German Economic Association.
    10. Weyh, Antje & Lawitzky, Corinna & Rossen, Anja & Fuchs, Michaela, 2019. "Geschlechtsspezifische Lohnunterschiede in Sachsen," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Sachsen 201902, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Bundesrepublik Deutschland ; erwerbstätige Frauen ; erwerbstätige Männer ; geschlechtsspezifische Faktoren ; Landkreis ; Lohnunterschied ; regionale Disparität ; regionaler Vergleich ; sozialversicherungspflichtige Arbeitnehmer ; Vollzeitarbeit ; Wirtschaftsstruktur;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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