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Earnings of Men and Women in Firms with a Female Dominated Workforce: What Drives the Impact of Sex Segregation on Wages?

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  • Heinze, Anja

Abstract

This study analyzes the relationship between the segregation of women across establishments and the salaries paid to men and women. My aim is to separate the impact the proportion of women working within an establishment has upon individual wages. For this purpose hypotheses are formulated as to what drives this impact: sex-specific preferences, lower qualifications among women or discrimination against women. To investigate this issue empirically, I use matched employer-employee data from Germany. My results indicate that an increasing proportion of women in an establishment reduces wages for males and females in both western and eastern Germany. Furthermore the empirical analysis shows that by successively including worker and establishment characteristics, the number of females in an establishment has a severely detrimental effect upon the salaries paid to both sexes.

Suggested Citation

  • Heinze, Anja, 2009. "Earnings of Men and Women in Firms with a Female Dominated Workforce: What Drives the Impact of Sex Segregation on Wages?," ZEW Discussion Papers 09-012, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:7537
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    References listed on IDEAS

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    Cited by:

    1. Eva Fransen & Janneke Plantenga & Jan Dirk Vlasblom, 2011. "Why do women still earn less than men? Decomposing the Dutch gender pay gap, 1996-2006," Post-Print hal-00719069, HAL.
    2. Braakmann Nils, 2010. "Fields of Training, Plant Characteristics and the Gender Wage Gap in Entry Wages Among Skilled Workers – Evidence from German Administrative Data," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(1), pages 27-41, February.
    3. Boris Hirsch & Thorsten Schank & Claus Schnabel, 2010. "Differences in Labor Supply to Monopsonistic Firms and the Gender Pay Gap: An Empirical Analysis Using Linked Employer-Employee Data from Germany," Journal of Labor Economics, University of Chicago Press, vol. 28(2), pages 291-330, April.
    4. Christian Pfeifer, 2014. "The Gender Composition of Establishments' Workforces and Gender Gaps in Wages and Leadership Positions," Manchester School, University of Manchester, vol. 82, pages 69-81, December.
    5. Eva Fransen & Janneke Plantenga & Jan Dirk Vlasblom, 2012. "Why do women still earn less than men? Decomposing the Dutch gender pay gap, 1996--2006," Applied Economics, Taylor & Francis Journals, vol. 44(33), pages 4343-4354, November.

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    More about this item

    Keywords

    gender wage differentials; female segregation across establishments; matched employer-employee data;
    All these keywords.

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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