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The reversal of the gender pay gap among public-contest selected young employees

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  • Castagnetti, Carolina
  • Rosti, Luisa
  • Töpfer, Marina

Abstract

This paper analyzes the effect of public-contest recruitment on earnings by applying an extended version of the Oaxaca-Blinder model with double selection to microdata on Italy. We find that the gender pay gap vanishes among public-contest selected employees, and even reverses in favor of women (-17.4%) in the young sample. The reversal is because public contests are merit-based and gender-fair screening devices. They are merit-based because selected employees possess higher productive characteristics than unselected ones, both women and men. They are gender-fair because the coefficients component in the Oaxaca-Blinder decomposition is never significant among public-contest recruited employees, either with or without selection. On the contrary, among employees not hired by public contest the gender pay gap is positive and significant (7.6%), and it is entirely due to coefficients, that is to discrimination in the career path.

Suggested Citation

  • Castagnetti, Carolina & Rosti, Luisa & Töpfer, Marina, 2015. "The reversal of the gender pay gap among public-contest selected young employees," Hohenheim Discussion Papers in Business, Economics and Social Sciences 14-2015, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
  • Handle: RePEc:zbw:hohdps:142015
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