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Decomposing the Gender Wage Gap Across the Wage Distribution: South Korea in 2003 vs. 2013

Author

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  • Tromp, Nikolas

Abstract

I analyze the gender wage gap in South Korea across the wage distribution in 2003 vs. 2013. Gaps are decomposed into composition and structural effects using a semi-parametric framework. I find a "glass ceiling" effect in both years with larger wage gaps at the upper end of the wage distribution. Decompositions show that the structural effect decreases, and composition effect increases, in importance as we move up the distribution. Between 2003 and 2013, a fall in the composition effect drives the narrowing of the wage gap across the entire distribution. While a fall in the structural effect augments the narrowing at the lower end of the distribution, a rise in the structural effect curtails it at the upper end, maintaining the glass ceiling. Lastly, controlling for occupational choice causes minor increases in the composition effect at the lower end and structural effect at the upper end of the distribution.

Suggested Citation

  • Tromp, Nikolas, 2016. "Decomposing the Gender Wage Gap Across the Wage Distribution: South Korea in 2003 vs. 2013," MPRA Paper 75123, University Library of Munich, Germany, revised 08 Nov 2016.
  • Handle: RePEc:pra:mprapa:75123
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    File URL: https://mpra.ub.uni-muenchen.de/75123/1/MPRA_paper_75123.pdf
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    References listed on IDEAS

    as
    1. DiNardo, John & Fortin, Nicole M & Lemieux, Thomas, 1996. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," Econometrica, Econometric Society, vol. 64(5), pages 1001-1044, September.
    2. Cho, Donghun, 2007. "Why is the gender earnings gap greater in Korea than in the United States?," Journal of the Japanese and International Economies, Elsevier, vol. 21(4), pages 455-469, December.
    3. 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.
    4. Cho, Donghun & Cho, Joonmo & Song, Bohwa, 2010. "An empirical analysis of the gender earnings gap between the public and private sectors in Korea: A comparative study with the US," Journal of the Japanese and International Economies, Elsevier, vol. 24(3), pages 441-456, September.
    5. Monk-Turner, Elizabeth & Turner, Charlie, 2004. "The gender wage gap in South Korea: how much has changed in 10 years?," Journal of Asian Economics, Elsevier, vol. 15(2), pages 415-424, April.
    6. M. C. Berger & P. Groothuis & P. Jeon, 1997. "The changing gender wage gap in Korea," Applied Economics Letters, Taylor & Francis Journals, vol. 4(9), pages 579-582.
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    Citations

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    Cited by:

    1. Faruk, Avinno, 2019. "Analysing the glass ceiling and sticky floor effects in Bangladesh: Evidence, extent and elements," MPRA Paper 92137, University Library of Munich, Germany.
    2. Mustafizur Rahman & Marzuka Md. Al-Hasan, 2019. "Women in Bangladesh Labour Market: Determinants of Participation, Gender Wage Gap and Returns to Schooling," CPD Working Paper 124, Centre for Policy Dialogue (CPD).
    3. Rahman, Mustafizur & Al-Hasan, Md., 2018. "Male-Female wage gap and informal employment in Bangladesh: A quantile regression approach," MPRA Paper 90131, University Library of Munich, Germany.

    More about this item

    Keywords

    Gender wage gaps; Decomposition methods; Wage Distributions;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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