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Measuring Selectivity-Corrected Gender Wage Gaps in the EU

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  • Heinze, Anja
  • Beninger, Denis
  • Beblo, Miriam
  • Laisney, François

Abstract

We investigate different techniques to assess the gender pay gap in five EU countries (France, Germany, Italy, Spain and United Kingdom), focusing on self-selection into market work. Results show that selectivity correction has an impact on both wage estimates and wage gap decomposition. If there is a positive correlation between the wage and the propensity to participate, the estimated pay gap understates the true difference in earnings when self-selection is ignored. The estimated pay gap differs considerably at different quantiles of the wage distribution, and is sensitive to the choice of estimator.

Suggested Citation

  • 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.
  • Handle: RePEc:zbw:zewdip:1684
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    References listed on IDEAS

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    Cited by:

    1. Töpfer, Marina & Castagnetti, Carolina & Rosti, Luisa, 2016. "Discriminate me - if you can! The Disappearance of the Gender Pay Gap among Public-Contest Selected Employees," Annual Conference 2016 (Augsburg): Demographic Change 145905, Verein für Socialpolitik / German Economic Association.
    2. repec:pav:demwpp:demwp0108 is not listed on IDEAS
    3. Günalp, Burak & Cilasun, Seyit Mümin & Acar, Elif Öznur, 2013. "Male-Female Labor Market Participation and the Extent of Gender-Based Wage Discrimination in Turkey," MPRA Paper 51503, University Library of Munich, Germany.
    4. 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.
    5. Bosio, Giulio, 2009. "Temporary employment and wage gap with permanent jobs: evidence from quantile regression," MPRA Paper 16055, University Library of Munich, Germany.
    6. Antonczyk, Dirk & Fitzenberger, Bernd & Sommerfeld, Katrin, 2010. "Rising wage inequality, the decline of collective bargaining, and the gender wage gap," Labour Economics, Elsevier, vol. 17(5), pages 835-847, October.
    7. Chiara Mussida, 2015. "L’impatto dell’istruzione sui salari per genere in Italia / Appendice Statistica," ECONOMIA E SOCIETÀ REGIONALE, FrancoAngeli Editore, vol. 2015(2), pages 94-113.
    8. Claudia Olivetti & Barbara Petrongolo, 2008. "Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 621-654, October.
    9. Chi, Wei & Li, Bo, 2014. "Trends in China’s gender employment and pay gap: Estimating gender pay gaps with employment selection," Journal of Comparative Economics, Elsevier, pages 708-725.
    10. Catia Nicodemo, 2009. "Heterogeneity across Immigrants in the Spanish Labour Market: Advantage and Disadvantage," Working Papers wpdea0909, Department of Applied Economics at Universitat Autonoma of Barcelona.
    11. Jonathan Fisher & Christina Houseworth, 2012. "The reverse wage gap among educated White and Black women," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 10(4), pages 449-470, December.
    12. Tindara ADDABBO & Donata Favaro, 2007. "Education and wage differentials by gender in Italy," CHILD Working Papers wp04_07, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    13. BARGAIN Olivier & DOORLEY Karina & VAN KERM Philippe, 2016. "Minimum wages and the gender gap in pay. Evidence from the UK and Ireland," LISER Working Paper Series 2016-02, LISER.
    14. Marjan Petreski & Nikica Blazevski & Blagica Petreski, 2014. "Gender Wage Gap when Women are Highly Inactive: Evidence from Repeated Imputations with Macedonian Data," Journal of Labor Research, Springer, vol. 35(4), pages 393-411, December.
    15. Haroon Bhorat & Sumayya Goga, 2012. "The Gender Wage Gap in the Post-apartheid South African Labour Market," Working Papers 12148, University of Cape Town, Development Policy Research Unit.
    16. Ömer Limanlı, 2015. "Gender Based Wage Gap in Turkey," EY International Congress on Economics II (EYC2015), November 5-6, 2015, Ankara, Turkey 22, Ekonomik Yaklasim Association.
    17. repec:hal:journl:halshs-00188745 is not listed on IDEAS
    18. Gallego Granados, Patricia & Geyer, Johannes, 2014. "From Gross Wages to Net Household Income: a Distributional Analysis of the Gender Wage Gap," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100492, Verein für Socialpolitik / German Economic Association.
    19. Heinze, Anja, 2010. "Beyond the mean gender wage gap: Decomposition of differences in wage distributions using quantile regression," ZEW Discussion Papers 10-043, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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