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The Persistent Gap: New Evidence on the Canadian Gender Wage Gap

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  • Drolet, Marie

Abstract

This article uses data from the Survey of Labour and Income Dynamics (SLID) to investigate the extent to which factors not previously explored in the Canadian context account for wage differences between men and women. Like other studies using standard decomposition techniques and controlling for a variety of productivity-related characteristics, the results demonstrate that men still enjoy a wage advantage over women: women's average hourly wage rate is about 84% - 89% of the men's average. Unlike other studies, controls for work experience and job-related responsibilities are used. Gender differences in full-year, full-time work experience explain at most, 12% of the gender wage gap. Gender differences in the opportunity to supervise and to perform certain tasks account for about 5% of the gender wage gap. Yet despite the long list of productivity related factors, a substantial portion of the gender wage gap cannot be explained. Many studies rely on measures such as age or potential experience (= age minus number of years of schooling minus six) as a proxy for actual labour market. Neither of these measures account for complete withdrawals from the labour market nor for restrictions on the number of hours worked per week or on the number of weeks worked per year due to family-related responsibilities. The results show that proxies for experience yield larger adjusted gender wage gaps than when actual experience is used.

Suggested Citation

  • Drolet, Marie, 2001. "The Persistent Gap: New Evidence on the Canadian Gender Wage Gap," Analytical Studies Branch Research Paper Series 2001157e, Statistics Canada, Analytical Studies Branch.
    • Handle: RePEc:stc:stcp3e:2001157e
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    File URL: https://www150.statcan.gc.ca/n1/en/catalogue/11F0019M2001157
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    References listed on IDEAS

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    1. Denise J. Doiron & W. Craig Riddell, 1994. "The Impact of Unionization on Male-Female Earnings Differences in Canada," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 504-534.
    2. Mary Corcoran & Greg J. Duncan, 1979. "Work History, Labor Force Attachment, and Earnings Differences between the Races and Sexes," Journal of Human Resources, University of Wisconsin Press, vol. 14(1), pages 3-20.
    3. Murphy, Kevin M & Welch, Finis, 1990. "Empirical Age-Earnings Profiles," Journal of Labor Economics, University of Chicago Press, vol. 8(2), pages 202-229, April.
    4. Wannell, Ted & Caron, Nathalie, 1994. "The Gender Earnings Gap Among Recent Postsecondary Graduates, 1984-92," Analytical Studies Branch Research Paper Series 1994068e, Statistics Canada, Analytical Studies Branch.
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    Cited by:

    1. Tom Buchanan & Adian McFarlane & Anupam Das, 2018. "Educational Attainment and the Gender Gap in Childcare in Canada: A Decomposition Analysis," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 12(4), pages 458-476, November.
    2. Linda A. White, 2001. "Child Care, Women's Labour Market Participation and Labour Market Policy Effectiveness in Canada," Canadian Public Policy, University of Toronto Press, vol. 27(4), pages 385-405, December.
    3. Nicole M. Fortin & Michael Huberman, 2002. "Occupational Gender Segregation and Women's Wages in Canada: An Historical Perspective," Canadian Public Policy, University of Toronto Press, vol. 28(s1), pages 11-39, May.
    4. David Fergusson & Sheree J. Gibb, 2009. "Sources of the Gender Wage Gap in a New Zealand Birth Cohort," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 12(3), pages 281-298.
    5. Marie Drolet, 2002. "Can the Workplace Explain Canadian Gender Pay Differentials?," Canadian Public Policy, University of Toronto Press, vol. 28(s1), pages 41-63, May.
    6. Coulombe, Simon & Frenette, Marc, 2007. "Has Higher Education Among Young Women Substantially Reduced the Gender Gap in Employment and Earnings?," Analytical Studies Branch Research Paper Series 2007301e, Statistics Canada, Analytical Studies Branch.
    7. Alexandra Cortés Aguilar & María Alejandra Flórez Vera, 2016. "Diferencias salariales por género en el departamento de Santander - Colombia," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 35(61), pages 267-302, January.
    8. Margaret Yap, 2010. "Slicing and dicing the gender/racial earnings differentials," International Journal of Manpower, Emerald Group Publishing Limited, vol. 31(4), pages 466-488, July.
    9. Morley Gunderson, 2006. "Viewpoint: Male‐female wage differentials: how can that be?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(1), pages 1-21, February.
    10. Christopher Worswick & Frances Woolley & Casey Warman, 2006. "The Evolution Of Male-female Wages Differentials In Canadian Universities: 1970-2001," Working Paper 1099, Economics Department, Queen's University.

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