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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 - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:7537
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    References listed on IDEAS

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    1. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 76-108, Part II, .
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    7. Kevin T. Reilly & Tony S. Wirjanto, 1999. "The Proportion of Females in the Establishment: Discrimination, Preferences and Technology," Canadian Public Policy, University of Toronto Press, vol. 25(s1), pages 73-94, November.
    8. José Vieira & Ana Cardoso & Miguel Portela, 2005. "Gender segregation and the wage gap in Portugal: an analysis at the establishment level," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 3(2), pages 145-168, August.
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    10. Nabanita Datta Gupta & Donna S. Rothstein, 2005. "The Impact of Worker and Establishment-level Characteristics on Male-Female Wage Differentials: Evidence from Danish Matched Employee-Employer Data," LABOUR, CEIS, vol. 19(1), pages 1-34, March.
    11. Burdett, Kenneth & Mortensen, Dale T, 1998. "Wage Differentials, Employer Size, and Unemployment," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 257-273, May.
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    13. Bender, Stefan & Haas, Anette & Klose, Christoph, 2000. "IAB Employment Subsample 1975-1995 Opportunities for Analysis Provided by the Anonymised Subsample," IZA Discussion Papers 117, Institute for the Study of Labor (IZA).
    14. Erica L. Groshen, 1991. "The Structure of the Female/Male Wage Differential: Is It Who You Are, What You Do, or Where You Work?," Journal of Human Resources, University of Wisconsin Press, vol. 26(3), pages 457-472.
    15. Polachek, Solomon William, 1981. "Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 60-69, February.
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    17. Amuedo-Dorantes Catalina & De la Rica Sara, 2006. "The Role of Segregation and Pay Structure on the Gender Wage Gap: Evidence from Matched Employer-Employee Data for Spain," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-34, April.
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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.

    More about this item

    Keywords

    gender wage differentials; female segregation across establishments; matched employer-employee data;

    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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