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The Effect of Higher Education on Gender Wage-Gap

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  • Livanos, Ilias
  • Nunez, Imanol

Abstract

In this paper we investigate the effect of an academic degree on gender wage gap in Greece and the United Kingdom. Using Labour Force Survey (LFS) micro-data, first, we compare the returns to higher education for males and females, second, we decompose the gender wage gap between graduates and individuals with secondary education, and finally we analyse the effect of higher education on the (un)explained part of the wage gap. For that purpose, an extension of the Oaxaca-Blinder decomposition technique is used. We find that the unexplained part, which is often related to discrimination is lower for graduates in both countries.

Suggested Citation

  • Livanos, Ilias & Nunez, Imanol, 2010. "The Effect of Higher Education on Gender Wage-Gap," MPRA Paper 25487, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:25487
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    References listed on IDEAS

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    1. Patrick Bolton & Mathias Dewatripont, 2005. "Contract Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262025760, February.
    2. Banerjee, Dyuti S. & Gaston, Noel, 2004. "Labour market signalling and job turnover revisited," Labour Economics, Elsevier, vol. 11(5), pages 599-622, October.
    3. Ilias Livanos & Çagri Yalkin & Imanol Nuñez, 2009. "Gender employment discrimination: Greece and the United Kingdom," International Journal of Manpower, Emerald Group Publishing, vol. 30(8), pages 815-834, November.
    4. McGuinness, Seamus & Bennett, Jessica, 2007. "Overeducation in the graduate labour market: A quantile regression approach," Economics of Education Review, Elsevier, vol. 26(5), pages 521-531, October.
    5. Arnaud Chevalier, 2007. "Education, Occupation and Career Expectations: Determinants of the Gender Pay Gap for UK Graduates," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 819-842, December.
    6. Black, Dan A. & Smith, J.A.Jeffrey A., 2004. "How robust is the evidence on the effects of college quality? Evidence from matching," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 99-124.
    7. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
    8. Wright, Robert E & Ermisch, John F, 1991. "Gender Discrimination in the British Labour Market: A Reassessment," Economic Journal, Royal Economic Society, vol. 101(406), pages 508-522, May.
    9. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
    10. Nielsen, Helena Skyt, 1998. "Discrimination and detailed decomposition in a logit model," Economics Letters, Elsevier, vol. 61(1), pages 115-120, October.
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    Cited by:

    1. Gracia Serrano & Francisco Llamazares & F. Javier Otamendi, 2015. "Measurement and Sustainability of the Qualifications Frameworks in the European Higher Education Area through an Employment Survey on Access to the Labour Market," Sustainability, MDPI, Open Access Journal, vol. 7(10), pages 1-36, October.
    2. Carolina Castagnetti & Luisa Rosti & Marina Toepfer, 2017. "Overeducation and the Gender Pay Gap in Italy. A Double Selectivity Approach," DEM Working Papers Series 144, University of Pavia, Department of Economics and Management.
    3. Michael Chletsos & Stelios Roupakias, 2020. "Education and wage inequality before and during the fiscal crisis: A quantile regression analysis for Greece 2006–2016," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1333-1364, November.
    4. Abrar ul haq, Muhammad & Mehtab, Nadia & Khan, Tasneem, 2012. "Gender Disparity in Economic Returns to Higher Education: Evidence from Private Formal Sector of Bahawalpur (Pakistan)," MPRA Paper 62958, University Library of Munich, Germany, revised 2012.
    5. Andreea Mirica, 2014. "Higher Education – A Solution To Unemployment? Case Study: Romania," Romanian Statistical Review, Romanian Statistical Review, vol. 62(3), pages 63-75, September.

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    More about this item

    Keywords

    Discrimination; graduates; gender;
    All these keywords.

    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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