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The Gender Wage Gap as a Function of Educational Degree Choices in Greece

  • Pouliakas, Konstantinos
  • Livanos, Ilias

This study investigates the extent to which differences in the subject of degree studied by male and female university graduates contributes to the gender pay gap in Greece. The case of Greece is interesting as it is an EU country with historically large gender discrepancies in earnings and one of the highest levels of occupational gender segregation among OECD economies. Using micro-data from the most recently available waves (2000-2003) of the Greek Labour Force Survey (LFS), the returns to academic disciplines are firstly estimated by gender. It is found that the subjects in which women are relatively over-represented (e.g. Education, Humanities) are also those with the lowest amortization in terms of wage returns. Oaxaca-Blinder decompositions subsequently imply that gender differences in the type of degree studied can explain an additional 8.4% of the male-female pay gap in Greece. Risk-augmented earnings functions (Hartog, 2006) indicate that Greek women seek for less risky educations that consequently command lower wage premiums in the job market.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14168.

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Date of creation: 14 Aug 2008
Date of revision: 19 Mar 2009
Handle: RePEc:pra:mprapa:14168
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  4. 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.
  5. Pereira, Pedro T. & Martins, Pedro S., 2001. "Returns to Education and Wage Equations," IZA Discussion Papers 298, Institute for the Study of Labor (IZA).
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  8. Heckman, James J. & Lochner, Lance John & Todd, Petra E., 2003. "Fifty Years of Mincer Earnings Regressions," IZA Discussion Papers 775, Institute for the Study of Labor (IZA).
  9. MONTMARQUETTE, Claude & CANNINGS, Kathy & MAHSEREDJIAN, Sophie, 1997. "How do Young People Choose College Majors?," Cahiers de recherche 9719, Universite de Montreal, Departement de sciences economiques.
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  11. Derek Leslie, 2003. "Using success to measure quality in British higher education: which subjects attract the best-qualified students?," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 166(3), pages 329-347.
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  16. Boskin, Michael J, 1974. "A Conditional Logit Model of Occupational Choice," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 389-98, Part I, M.
  17. D. H. Blackaby & P. D. Murphy & N. C. O'Leary, 1999. "Graduate earnings in Great Britain: a matter of degree?," Applied Economics Letters, Taylor & Francis Journals, vol. 6(5), pages 311-315.
  18. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75, pages 352.
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  22. Polachek, Solomon William, 1981. "Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 60-69, February.
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