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Everything You Always Wanted to Know about Sex Discrimination

  • Cardoso, Ana Rute

    ()

    (IAE Barcelona (CSIC))

  • Guimaraes, Paulo

    ()

    (Banco de Portugal)

  • Portugal, Pedro

    ()

    (Banco de Portugal)

Earlier literature on the gender pay gap has taught us that occupations matter and so do firms. However, the role of the firm has received little scrutiny; occupations have most often been coded in a rather aggregate way, lumping together different jobs; and the use of samples of workers prevents any reliable determination of either the extent of segregation or the relative importance of access to firms versus occupations. Our contribution is twofold. We provide a clear measure of the impact of the allocation of workers to firms and to job titles shaping the gender pay gap. We also provide a methodological contribution that combines the estimation of sets of high-dimensional fixed effects and Gelbach's (2009) unambiguous decomposition of the conditional gap. We find that one fifth of the gender pay gap results from segregation of workers across firms and one fifth from job segregation. We also show that the widely documented glass ceiling effect operates mainly through worker allocation to firms rather than occupations.

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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7109.

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Length: 28 pages
Date of creation: Dec 2012
Date of revision:
Handle: RePEc:iza:izadps:dp7109
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  1. Claudia Goldin & Cecilia Rouse, 1997. "Orchestrating Impartiality: The Impact of "Blind" Auditions on Female Musicians," NBER Working Papers 5903, National Bureau of Economic Research, Inc.
  2. Simon D. Woodcock, 2007. "Wage Differentials in the Presence of Unobserved Worker, Firm, and Match Heterogeneity," Discussion Papers dp07-10, Department of Economics, Simon Fraser University.
  3. William J Carrington & Kenneth R Troske, 1996. "Sex Segregation in US Manufacturing," Economics Working Paper Archive 364, The Johns Hopkins University,Department of Economics.
  4. Olivetti, Claudia & Petrongolo, Barbara, 2006. "Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps," CEPR Discussion Papers 5506, C.E.P.R. Discussion Papers.
  5. Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "A Meta-Analysis of the International Gender Wage Gap," Economics Series 143, Institute for Advanced Studies.
  6. Torres, Sónia & Portugal, Pedro & Addison, John T. & Guimaraes, Paulo, 2013. "The Sources of Wage Variation: A Three-Way High-Dimensional Fixed Effects Regression Model," IZA Discussion Papers 7276, Institute for the Study of Labor (IZA).
  7. Alan Manning & Joanna Swaffield, 2005. "The Gender Gap in Early Career Wage Growth," CEP Discussion Papers dp0700, Centre for Economic Performance, LSE.
  8. Marianne Bertrand & Kevin Hallock, 1999. "The Gender Gap in Top Corporate Jobs," Working Papers 805, Princeton University, Department of Economics, Industrial Relations Section..
  9. Paulo Guimarães & Pedro Portugal, 2010. "A simple feasible procedure to fit models with high-dimensional fixed effects," Stata Journal, StataCorp LP, vol. 10(4), pages 628-649, December.
  10. John T. Addison & Mário Centeno & Pedro Portugal, 2004. "Reservation Wages, Search Duration, and Accepted Wages in Europe," Working Papers w200413, Banco de Portugal, Economics and Research Department.
  11. Kunze, Astrid, 2005. "The evolution of the gender wage gap," Labour Economics, Elsevier, vol. 12(1), pages 73-97, February.
  12. T.D. Stanley & Stephen B. Jarrell, 1998. "Gender Wage Discrimination Bias? A Meta-Regression Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 947-973.
  13. David Blackaby & Alison L Booth & Jeff Frank, 2005. "Outside Offers And The Gender Pay Gap: Empirical Evidence From the UK Academic Labour Market," Economic Journal, Royal Economic Society, vol. 115(501), pages F81-F107, 02.
  14. Joseph G. Altonji & Rebecca M. Blank, . "Race and Gender in the Labor Market," IPR working papers 98-18, Institute for Policy Resarch at Northwestern University.
  15. 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.
  16. Stephen B. Jarrell & T. D. Stanley, 2004. "Declining Bias and Gender Wage Discrimination? A Meta-Regression Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 39(3).
  17. Nicole M. Fortin & Michael Huberman, 2002. "Occupational Gender Segregation and Women's Wages in Canada: An Historical Perspective," CIRANO Working Papers 2002s-22, CIRANO.
  18. Kathy Cannings & Claude Montmarquette, 1991. "Managerial momentum: A simultaneous model of the career progress of male and female managers," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 44(2), pages 212-228, January.
  19. Baldwin, Marjorie L & Butler, Richard J & Johnson, William G, 2001. "A Hierarchical Theory of Occupational Segregation and Wage Discrimination," Economic Inquiry, Western Economic Association International, vol. 39(1), pages 94-110, January.
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