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The Gender Pay Gap in the Australian Private Sector: Is Selection Relevant across the Wage Distribution?

  • Chzhen, Yekaterina

    ()

    (University of Oxford)

  • Mumford, Karen A.

    ()

    (University of York)

  • Nicodemo, Catia

    ()

    (University of Oxford)

We use quantile regression and counterfactual decomposition methods to explore gender gaps across the earning distribution for full-time employees in the Australian private sector. Significant evidence of a self selection effect for women into full-time employment (or of components of self selection related to observable or unobservable characteristics) is, interestingly, not found to be relevant in the Australian context. Substantial gender earnings gaps (and glass ceilings) are established, with these earnings gaps found to be predominantly related to women receiving lower returns to their observable characteristics than men.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6558.

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Length: 22 pages
Date of creation: May 2012
Date of revision:
Publication status: published in: Economic Record, 2013, 89 (286), 367–381
Handle: RePEc:iza:izadps:dp6558
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  1. Barón, Juan D. & Cobb-Clark, Deborah A., 2008. "Occupational Segregation and the Gender Wage Gap in Private- and Public-Sector Employment: A Distributional Analysis," IZA Discussion Papers 3562, Institute for the Study of Labor (IZA).
  2. Albrecht, James & van Vuuren, Aico & Vroman, Susan, 2009. "Counterfactual distributions with sample selection adjustments: Econometric theory and an application to the Netherlands," Labour Economics, Elsevier, vol. 16(4), pages 383-396, August.
  3. Paul Gregg & Maria Gutierrez-Domenech & Jane Waldfogel, 2003. "The Employment of Married Mothers in Great Britain: 1974 - 2000," The Centre for Market and Public Organisation 03/078, Department of Economics, University of Bristol, UK.
  4. Kidd, Michael P & Viney, Rosalie, 1991. "Sex Discrimination and Non-random Sampling in the Australian Labour Market," Australian Economic Papers, Wiley Blackwell, vol. 30(56), pages 28-49, June.
  5. Nicodemo, Catia, 2009. "Gender Pay Gap and Quantile Regression in European Families," IZA Discussion Papers 3978, Institute for the Study of Labor (IZA).
  6. Hiau Joo Kee, 2006. "Glass Ceiling or Sticky Floor? Exploring the Australian Gender Pay Gap," The Economic Record, The Economic Society of Australia, vol. 82(259), pages 408-427, December.
  7. Miller, Paul & Rummery, Sarah, 1991. "Male-Female Wage Differentials in Australia: A Reassessment," Australian Economic Papers, Wiley Blackwell, vol. 30(56), pages 50-69, June.
  8. Chzhen, Yekaterina & Mumford, Karen, 2011. "Gender gaps across the earnings distribution for full-time employees in Britain: Allowing for sample selection," Labour Economics, Elsevier, vol. 18(6), pages 837-844.
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