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Education and wage differentials by gender in Italy

  • Tindara ADDABBO

    ()

  • Donata Favaro

    ()

The most recent literature on wage differentials highlights the need to evaluate the wage gap at different points of the wage distribution rather than at the average value alone. In this work we use quantile regressions and an adaptation of the procedure suggested by Machado and Mata (2005) to derive the predicted and counterfactual female wage distributions and to evaluate the extension of the unexplained part of the wage gap. We use data from the last available cross-section of the European Community Household Panel (2001). We show that in Italy the wage gap due to gender differences in the rewards to productive characteristics is higher in correspondence with the extremes of the female wage distribution, suggesting the presence of strong glass ceiling and sticky floor patterns. Controlling for different educational levels, we find that low-educated women suffer a higher unexplained wage gap along the whole distribution. However, we detect a strong sticky floor effect among low-educated women and some evidence of a glass ceiling pattern among highly-educated female workers.

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Paper provided by CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY in its series CHILD Working Papers with number wp04_07.

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Length: 45 pages
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:wpc:wplist:wp04_07
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  1. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  2. 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).
  3. Heinze, Anja & Beninger, Denis & Beblo, Miriam & Laisney, François, 2003. "Measuring Selectivity-Corrected Gender Wage Gaps in the EU," ZEW Discussion Papers 03-74, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. James Albrecht & Anders Bjorklund & Susan Vroman, 2003. "Is There a Glass Ceiling in Sweden?," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 145-177, January.
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  6. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  7. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
  8. Javier Gardeazabal & Arantza Ugidos, 2005. "Gender wage discrimination at quantiles," Journal of Population Economics, Springer, vol. 18(1), pages 165-179, 07.
  9. Angel López-Nicolás & Jaume García & Pedro J. Hernández, 2001. "How wide is the gap? An investigation of gender wage differences using quantile regression," Empirical Economics, Springer, vol. 26(1), pages 149-167.
  10. Daly, Anne & Kawaguchi, Akira & Meng, Xin & Mumford, Karen A., 2006. "The Gender Wage Gap in Four Countries," IZA Discussion Papers 1921, Institute for the Study of Labor (IZA).
  11. Kunze, Astrid, 2000. "The Determination of Wages and the Gender Wage Gap: A Survey," IZA Discussion Papers 193, Institute for the Study of Labor (IZA).
  12. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
  13. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, vol. 63(250), pages S29-62, Suppl..
  14. Koenker, Roger & Bassett, Gilbert, Jr, 1982. "Robust Tests for Heteroscedasticity Based on Regression Quantiles," Econometrica, Econometric Society, vol. 50(1), pages 43-61, January.
  15. Favaro, Donata & Magrini, Stefano, 2008. "Group versus individual discrimination among young workers: A distributional approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 1856-1879, October.
  16. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
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