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The increase of gender wage gap in Italy during the 2008-2012 economic crisis

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Abstract

The paper examines the gender wage gap in Italy during the 2008-2012 economic crisis, using cross-sectional EU-SILC data. The gender wage gap has increased from 4% (2008) to 8% (2012), but after 2010 the growth (and its unexplained component) was particularly pronounced in the upper part of the wage distribution, suggesting that two different patterns have been underway, depending on the period. In fact, in 2010-2011 a wage freeze in the public sector was introduced as an austerity measure, and the average public sector premium had a signi cant drop of 4%, even more pronounced for women. Using counterfactual analysis, we show that such wage freeze has been one of the major causes of the growth of the gender wage gap, disproportionately a ecting women, who are more likely to be employed in the public sector. The `policy effect' accounts for more than 100% of the increase between 2009 and 2011, while other changes, if anything, would have reduced the gender gap.

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  • Piazzalunga, Daniela & Di Tommaso, Maria Laura, 2015. "The increase of gender wage gap in Italy during the 2008-2012 economic crisis," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201532, University of Turin.
  • Handle: RePEc:uto:dipeco:201532
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    Cited by:

    1. Töpfer, Marina, 2017. "Detailed RIF decomposition with selection: The gender pay gap in Italy," Hohenheim Discussion Papers in Business, Economics and Social Sciences 26-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    2. Castagnetti, Carolina & Rosti, Luisa & Töpfer, Marina, 2017. "The convergence of the gender pay gap: An alternative estimation approach," Hohenheim Discussion Papers in Business, Economics and Social Sciences 14-2017, University of Hohenheim, Faculty of Business, Economics and Social Sciences.

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