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The Gender Pay Gap for Private Sector Employees in Canada and Britain

  • Drolet, Marie


    (Statistics Canada)

  • Mumford, Karen A.


    (University of York)

This paper uses British and Canadian linked employer-employee data to investigate the importance of the workplace for the gender wage gap. Implementing a novel decomposition approach, we find high levels of unexplained wage inequality in the private sector of both countries, which is related to women receiving relatively lower wages within workplaces than do men. Whilst this inequality is partially offset by women, on average, receiving a workplace specific return which is relatively higher than that paid to men, a substantial and significant unexplained within workplace wage gap remains which is considerably higher in Britain than in Canada. The results are consistent with a prima facie argument that country-specific factors, such as the wage setting environment, are important determinants in explaining the relative size of the gender wage gap.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 3957.

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Length: 30 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:iza:izadps:dp3957
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  2. Daly, Anne & Kawaguchi, Akira & Meng, Xin & Mumford, Karen A., 2006. "The Gender Wage Gap in Four Countries," IZA Discussion Papers 1921, Institute for the Study of Labor (IZA).
  3. Karen Mumford & Peter N. Smith, 2003. "Determinants of current job tenure: a cross country comparison," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 6(3), pages 435-451, September.
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  5. Francine D. Blau & Lawrence M. Kahn, 2003. "Understanding International Differences in the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 106-144, January.
  6. 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.
  7. Manning, Alan & Petrongolo, Barbara, 2007. "The Part-Time Pay Penalty for Women in Britain," CEPR Discussion Papers 6058, C.E.P.R. Discussion Papers.
  8. Stewart, Mark B, 1983. "On Least Squares Estimation When the Dependent Variable Is Grouped," Review of Economic Studies, Wiley Blackwell, vol. 50(4), pages 737-53, October.
  9. Rhys Davies & Richard Welpton, 2008. "How Does Workplace Monitoring Affect the Gender Wage Differential? Analysis of the Annual Survey of Hours and Earnings and the 2004 Workplace Employment Relations Survey - A Research Note," British Journal of Industrial Relations, London School of Economics, vol. 46(4), pages 732-749, December.
  10. Connolly, Sara & Gregory, Mary, 2007. "Moving Down: Women’s Part-time Work and Occupational Change in Britain 1991–2001," IZA Discussion Papers 3106, Institute for the Study of Labor (IZA).
  11. Michael Baker & Nicole M. Fortin, 2000. "Occupational Gender Composition and Wages in Canada: 1987-1988," Working Papers baker-00-01, University of Toronto, Department of Economics.
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  14. Xin Meng & Dominique Meurs, 2004. "The gender earnings gap: effects of institutions and firms--a comparative study of French and Australian private firms," Oxford Economic Papers, Oxford University Press, vol. 56(2), pages 189-208, April.
  15. Tracy L. Regan & Ronald L. Oaxaca, 2007. "Work experience as a source of specification errorin earnings models: implications for genderwage decompositions," Working Papers 2010-6, University of Miami, Department of Economics.
  16. John M. Abowd & John C. Haltiwanger & Julia I. Lane, 2004. "Integrated Longitudinal Employee-Employer Data for the United States," Longitudinal Employer-Household Dynamics Technical Papers 2004-02, Center for Economic Studies, U.S. Census Bureau.
  17. Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
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  19. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," Journal of Political Economy, University of Chicago Press, vol. 70, pages 9.
  20. Marie Drolet, 2002. "Can the workplace explain Canadian gender pay differentials?," New Zealand Economic Papers, Taylor & Francis Journals, vol. 36(1), pages 75-77.
  21. Linda Dickens, 2007. "The Road is Long: Thirty Years of Equality Legislation in Britain," British Journal of Industrial Relations, London School of Economics, vol. 45(3), pages 463-494, 09.
  22. Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
  23. Richard Disney & Amanda Gosling, 2008. "Changing public sector wage differentials in the UK," IFS Working Papers W08/02, Institute for Fiscal Studies.
  24. Marie Drolet, 2002. "Can the Workplace Explain Canadian Gender Pay Differentials?," Canadian Public Policy, University of Toronto Press, vol. 28(s1), pages 41-63, May.
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