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Education and wage differentials by gender in Italy

  • Tindara Addabbo

    ()

  • Donata Favaro

    ()

In this paper we evaluate wage differentials in Italy combining gender and education perspectives. The main goal of the article is to verify whether the extent of the gender pay gap varies between highly- and low-educated workers, and whether or not the role played by gender differences in characteristics and in market rewards is similar in the two groups. We apply quantile regression analysis and an adaptation of the procedure suggested by Machado and Mata (2005) to evaluate the predicted wage gap at different levels of education, at different points of the female wage distribution scale. The analysis is carried out on the Italian sample of the last available year of the European Community Household Panel (2001). We show that the extent and the trend of the gap predicted across the female distribution is sharply different between groups with diverse educational levels. In the case of low-educated workers, although the predicted gap is largely explained by differences in rewards, lower levels of education or experience are however responsible for the gap, especially on the right-hand side of the distribution. On the contrary, highly-educated females have better characteristics than highly-educated men that partially compensate the rather high difference in returns, in particular at the extremes of the distribution. It thus follows that the unexplained part of the predicted gap reveals a glass ceiling effect only for more highly-educated females.

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File URL: http://www.recent.unimore.it/wp/RECent-wp36.pdf
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Paper provided by University of Modena and Reggio E., Dept. of Economics "Marco Biagi" in its series Center for Economic Research (RECent) with number 036.

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Length: pages 46
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:mod:recent:036
Contact details of provider: Web page: http://www.recent.unimore.it/

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  1. Jaume Garcia & Pedro J. Hernández & Ángel López Nicolás, 1998. "How wide is the gap? An investigation of gender wage differences using quantile regression," Economics Working Papers 287, Department of Economics and Business, Universitat Pompeu Fabra.
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  11. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, vol. 63(250), pages S29-62, Suppl..
  12. James Albrecht & Anders Bjorklund & Susan Vroman, 2003. "Is There a Glass Ceiling in Sweden?," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 145-177, January.
  13. Moshe Buchinsky, 1998. "Recent Advances in Quantile Regression Models: A Practical Guideline for Empirical Research," Journal of Human Resources, University of Wisconsin Press, vol. 33(1), pages 88-126.
  14. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
  15. Favaro, Donata & Magrini, Stefano, 2008. "Group versus individual discrimination among young workers: A distributional approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 1856-1879, October.
  16. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
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