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The Gender Reservation Wage Gap: Evidence form British Panel Data

Author

Listed:
  • Brown, Sarah

    () (University of Sheffield)

  • Roberts, Jennifer

    () (University of Sheffield)

  • Taylor, Karl

    () (University of Sheffield)

Abstract

Our findings suggest the existence of a gender reservation wage gap. The presence of children, particularly pre-school age children, plays an important role in determining the proportion of this gap that can be explained by individual characteristics. For individuals without children, the unexplained component of the differential is 99% compared to only 22% for those with pre-school age children, which might indicate that perceived discrimination in the labour market influences the reservation wage setting of females.

Suggested Citation

  • Brown, Sarah & Roberts, Jennifer & Taylor, Karl, 2011. "The Gender Reservation Wage Gap: Evidence form British Panel Data," IZA Discussion Papers 5457, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5457
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    References listed on IDEAS

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    1. Deborah J. Anderson & Melissa Binder & Kate Krause, 2002. "The Motherhood Wage Penalty: Which Mothers Pay It and Why?," American Economic Review, American Economic Association, vol. 92(2), pages 354-358, May.
    2. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-229, April.
    3. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    4. Lancaster, Tony & Chesher, Andrew, 1983. "An Econometric Analysis of Reservation Wages," Econometrica, Econometric Society, vol. 51(6), pages 1661-1676, November.
    5. Becker, Gary S, 1985. "Human Capital, Effort, and the Sexual Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 33-58, January.
    6. Blackaby, D.H. & Latreille, P.L. & Murphy, P.D. & O'Leary, N.C. & Sloane, P.J., 2007. "An analysis of reservation wages for the economically inactive," Economics Letters, Elsevier, vol. 97(1), pages 1-5, October.
    7. 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.
    8. Sarah Brown & Jennifer Roberts & Karl Taylor, 2010. "Reservation wages, labour market participation and health," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 173(3), pages 501-529.
    9. Joshi, Heather & Paci, Pierella & Waldfogel, Jane, 1999. "The Wages of Motherhood: Better or Worse?," Cambridge Journal of Economics, Oxford University Press, vol. 23(5), pages 543-564, September.
    10. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
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    Citations

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    Cited by:

    1. Vassil, Kristjan & Eamets, Raul & Mõtsmees, Pille, 2014. "Socio-demographic Model of Gender Gap in Expected and Actual Wages in Estonia," IZA Discussion Papers 8604, Institute for the Study of Labor (IZA).
    2. Stephan Humpert & Christian Pfeifer, 2011. "Explaining Age and Gender Differences in Employment Rates: A Labor Supply Side Perspective," Working Paper Series in Economics 214, University of Lüneburg, Institute of Economics.
    3. Barbara Hofmann, 2014. "Sick of being “Activated?”," Empirical Economics, Springer, vol. 47(3), pages 1103-1127, November.
    4. Caliendo, Marco & Lee, Wang-Sheng & Mahlstedt, Robert, 2017. "The gender wage gap and the role of reservation wages: New evidence for unemployed workers," Journal of Economic Behavior & Organization, Elsevier, vol. 136(C), pages 161-173.
    5. Jaanika Merikull & Pille Mõtsmees, 2015. "Do you get what you ask? The gender gap in desired and realised wages," Bank of Estonia Working Papers wp2014-9, Bank of Estonia, revised 20 Jan 2015.
    6. repec:spr:jlabre:v:38:y:2017:i:2:d:10.1007_s12122-017-9244-9 is not listed on IDEAS
    7. repec:spr:jlabre:v:38:y:2017:i:2:d:10.1007_s12122-017-9247-6 is not listed on IDEAS
    8. Damian Grimshaw, 2016. "What Does the Minimum Wage Do ?, by Dale Belman and Paul Wolfson . W.E. Upjohn Institute for Employment Research , Kalamazoo, MI , 2014 , 471 pp., ISBN: 9780880994569, $35.00, paperback," British Journal of Industrial Relations, London School of Economics, vol. 54(1), pages 243-244, March.
    9. Liina Malk, 2015. "Determinants of reservation wages: empirical evidence for Estonia," Bank of Estonia Working Papers wp2014-8, Bank of Estonia, revised 20 Jan 2015.
    10. Kristina Nyström & Gulzat Zhetibaeva Elvung, 2015. "New Firms as Employers: The Wage Penalty for Voluntary and Involuntary Job Switchers," LABOUR, CEIS, vol. 29(4), pages 348-366, December.
    11. NAGORE GARCIA Amparo, 2017. "Gender Differences in Unemployment Dynamics and Initial Wages over the Business Cycle," LISER Working Paper Series 2017-06, LISER.
    12. Mariusz Kaszubowski & Joanna Wolszczak-Derlacz, 2014. "Salary and reservation wage gender gaps in Polish academia," GUT FME Working Paper Series A 19, Faculty of Management and Economics, Gdansk University of Technology.

    More about this item

    Keywords

    reservation wages; wage decomposition;

    JEL classification:

    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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