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Everything you always wanted to know about sex discrimination

  • Ana Rute Cardoso
  • Paulo Guimarães
  • Pedro 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 Banco de Portugal, Economics and Research Department in its series Working Papers with number w201302.

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Date of creation: 2013
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Handle: RePEc:ptu:wpaper:w201302
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  1. 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.
  2. 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.
  3. Addison, John T. & Centeno, Mario & Portugal, Pedro, 2004. "Reservation Wages, Search Duration, and Accepted Wages in Europe," IZA Discussion Papers 1252, Institute for the Study of Labor (IZA).
  4. Woodcock, Simon, 2006. "Wage Differentials in the Presence of Unobserved Worker, Firm, and Match Heterogeneity," MPRA Paper 1341, University Library of Munich, Germany.
  5. 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).
  6. Olivetti, Claudia & Petrongolo, Barbara, 2006. "Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps," IZA Discussion Papers 1941, Institute for the Study of Labor (IZA).
  7. 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.
  8. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2003. "A meta-analysis of the international gender wage gap," Economics working papers 2003-11, Department of Economics, Johannes Kepler University Linz, Austria.
  9. Alan Manning & Joanna Swaffield, 2005. "The Gender Gap in Early Career Wage Growth," CEP Discussion Papers dp0700, Centre for Economic Performance, LSE.
  10. 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).
  11. William J. Carrington & Kenneth R. Troske, 1998. "Sex segregation in U.S. manufacturing," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 51(3), pages 445-464, April.
  12. Marianne Bertrand & Kevin F. Hallock, 2000. "The Gender Gap in Top Corporate Jobs," NBER Working Papers 7931, National Bureau of Economic Research, Inc.
  13. Nicole M. Fortin & Michael Huberman, 2002. "Occupational Gender Segregation and Women's Wages in Canada: An Historical Perspective," CIRANO Working Papers 2002s-22, CIRANO.
  14. Claudia Goldin & Cecilia Rouse, 1997. "Orchestrating Impartiality: The Impact of 'Blind' Auditions on Female Musicians," Working Papers 755, Princeton University, Department of Economics, Industrial Relations Section..
  15. 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.
  16. Kunze, Astrid, 2005. "The evolution of the gender wage gap," Labour Economics, Elsevier, vol. 12(1), pages 73-97, February.
  17. 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.
  18. 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.
  19. 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.
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