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Decomposition of the gender wage gap using matching: an application for Switzerland

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  • Djurdjevic, Dragana
  • Radyakin, Sergiy

Abstract

In this paper, we investigate the gender wage differentials for Switzerland. Using micro data from the Swiss Labour Force Survey, we apply a matching method to decompose the wage gap in Switzerland. Compared to the traditional Oaxaca-Blinder decomposition, this nonparametric technique does not require any estimation of wage equations and accounts for wage differences that can be due to differences in the support. Our estimation results show that the problem of gender differences in the supports matter in explaining wage differentials. We can interpret these differences as a form of 'discrimination' which is reflected in wages because women face 'barriers to the entry' in accessing certain individual characteristics that men achieve. As a consequence, accounting for these differences in gender supports may be useful in terms of policy implications in promoting more equality between men and women.

Suggested Citation

  • Djurdjevic, Dragana & Radyakin, Sergiy, 2005. "Decomposition of the gender wage gap using matching: an application for Switzerland," Darmstadt Discussion Papers in Economics 155, Darmstadt University of Technology, Department of Law and Economics.
  • Handle: RePEc:zbw:darddp:dar_36794
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    Cited by:

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    2. Strittmatter, Anthony & Wunsch, Conny, 2021. "The Gender Pay Gap Revisited with Big Data: Do Methodological Choices Matter?," Working papers 2021/05, Faculty of Business and Economics - University of Basel.
    3. World Bank, 2007. "Chile - County Gender Assessment : Expanding Women's Work Choices to Enhance Chile's Economic Potential," World Bank Publications - Reports 7639, The World Bank Group.
    4. Altay Mussurov & Dena Sholk & G. Reza Arabsheibani, 2019. "Informal employment in Kazakhstan: a blessing in disguise?," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 9(2), pages 267-284, June.
    5. Richard Mussa, 2014. "A matching decomposition of the rural–urban difference in malnutrition in Malawi," Health Economics Review, Springer, vol. 4(1), pages 1-10, December.
    6. H Gravelle & A Risa Hole, 2008. "Measuring and testing for gender discrimination in professions: the case of English family doctors," Discussion Papers 08/27, Department of Economics, University of York.
    7. Dileni Gunewardena & Darshi Abeyrathna & Amalie Ellagala & Kamani Rajakaruna & Shobana Rajendran, 2008. "Glass Ceilings, Sticky Floors or Sticky Doors? A Quantile Regression Approach to Exploring Gender Wage Gaps in Sri Lanka," Working Papers PMMA 2008-04, PEP-PMMA.

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    More about this item

    Keywords

    discrimination; gender wage gap; matching;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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