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Article
Publication date: 16 January 2019

Jing Wang and Morley Gunderson

The purpose of this paper is to estimate the relative importance of gender discrimination and differences in household responsibilities as determinants of the male–female pay gap.

Abstract

Purpose

The purpose of this paper is to estimate the relative importance of gender discrimination and differences in household responsibilities as determinants of the male–female pay gap.

Design/methodology/approach

It parses out the relative importance of those two factors by using the pay between gay men vs lesbian women as a comparison group that should reflect only gender discrimination. Subtracting the pay gap between gay men and lesbians (reflecting only gender discrimination) from the male–female pay gap for their heterosexual counterparts (reflecting both gender discrimination and household responsibilities) provides evidence of the relative importance of gender discrimination and household responsibilities in explaining the male–female pay gap.

Findings

The results show that essentially all of the male–female pay gap is attributed to differences in household responsibilities.

Originality/value

This paper advances the literature of gender wage gap by using a novel comparison group – gay men vs lesbian women – to estimate the relative importance of gender discrimination and differences in household responsibilities as determinants of the male–female pay gap.

Details

International Journal of Manpower, vol. 40 no. 2
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 3 August 2015

Lin Xiu and Morley Gunderson

– The purpose of this paper is to analyze the gender earnings gap in China with a focus on the role of differences in the occupational distribution of males and females.

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Abstract

Purpose

The purpose of this paper is to analyze the gender earnings gap in China with a focus on the role of differences in the occupational distribution of males and females.

Design/methodology/approach

The authors use a procedure to model occupational attainments and decompose differences in earnings into an inter-occupational portion due to differences in the occupational distribution between males and females, and an intra-occupational portion due to differences in pay. The analysis is based on Chinese census data.

Findings

The authors find that the male-female pay gap is virtually completely explained by wage discrimination defined as females being paid less than males within the occupation groups based on six broad occupations. Occupational segregation explains virtually none of the overall male-female pay gap, and in fact the “segregation” slightly favors women. However, the picture changes substantially when the analysis is conducted at the more disaggregate sub-occupation level within each of the six broad groups. Wage discrimination remains the prominent contributor to the pay gap across the disaggregated sub-occupations in each of the broad occupations. But there is considerable heterogeneity in the effect of occupational discrimination within the sub-occupations within the different broad occupational groups.

Social implications

When females have the same occupation-determining characteristics as men, they are in lower paying sub-occupations within the professional group and to a lesser extent within manufacturing and operations jobs. There is considerable heterogeneity in the effect of occupational discrimination within the sub-occupations in the different broad occupational groups.

Originality/value

The paper systematically examines the degree to which the gender earnings gap in China is due to the differences in occupational distributions of males and females, highlighting that the conventional Blinder-Oaxaca decompositions can under- or over- estimate the unexplained portion of the gender pay gap by controlling or not controlling for differences in the occupational distribution of males and females. The paper also shows that previous studies that have examined occupational segregation across aggregate occupational groups can mask important differences in the effect of occupational discrimination within the sub-occupations in the different broad occupational groups.

Details

International Journal of Manpower, vol. 36 no. 5
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 27 May 2014

Lin Xiu and Morley Gunderson

– The purpose of the paper is to analyse how the male-female pay gap in China varies across the pay distribution and to provide evidence on the factors that influence that gap.

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Abstract

Purpose

The purpose of the paper is to analyse how the male-female pay gap in China varies across the pay distribution and to provide evidence on the factors that influence that gap.

Design/methodology/approach

The authors use the Recentered Influence Function modification of quantile regressions to estimate how the male-female pay gap varies across the pay distribution. The authors also decompose the pay gaps at different quantiles of the pay distribution into differences in endowments of wage determining characteristics and differences in the returns for the same characteristics. The analysis is based on data from the Life Histories and Social Change in Contemporary China survey.

Findings

The authors find evidence of a sticky floor (large pay gaps at the bottom of the pay distribution) and some limited and weaker evidence of a glass ceiling (large pay gaps at the top of the distribution). This pattern prevails based on the overall pay gap as well as on the adjusted or net gap that reflects differences in the pay that males and females receive when they have the same pay determining characteristics. The pattern largely reflects the coefficients or unexplained differences across the pay distribution. Factors influencing the pay gap and how they vary across the pay distribution are discussed. The variation highlights considerable heterogeneity in the Chinese labour market with respect to how pay is determined and different characteristics are rewarded, implying that the conventional Blinder-Oaxaca decompositions that focus only on the mean of the distribution can mask important differences across the full pay distribution.

Social implications

At the bottom of the pay distribution most of the lower pay of females reflects their lower returns to job tenure, experience and a greater negative effect of family responsibilities on females’ wages, and to a lesser extent their lower level of education, less likelihood of being CPP members and their concentration in lower paying occupations. At the top of the pay distribution most of their lower pay reflects their lower returns on education, job tenure and work experience, and to a lesser extent their lower levels of experience and lower likelihood of being in managerial and leadership positions.

Originality/value

The paper systematically examines the male-female pay gap and its determinants throughout the pay distribution in China, highlighting that the conventional Blinder-Oaxaca decompositions that focus only on the mean of the distribution can mask important differences across the full pay distribution and not capture the considerable heterogeneity in that labour market.

Details

International Journal of Manpower, vol. 35 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 26 April 2013

Lin Xiu

This study aims to examine the gender pay gap in organizational leadership positions in China. The author seeks to analyse how much of the gap is explained by differences in…

Abstract

Purpose

This study aims to examine the gender pay gap in organizational leadership positions in China. The author seeks to analyse how much of the gap is explained by differences in individual characteristics and how much is explained by firm characteristics.

Design/methodology/approach

This study estimates pay functions based on a unique data set from a survey of private firms and top managers in Liuzhou, Guangxi, China.

Findings

Female managers receive much lower pay than male managers in China. A larger portion of the gender earnings gap can be attributed to firm‐level characteristics than individual characteristics. Female managers tend to have fewer firm‐level characteristics that are associated with higher pay, and when they do, they tend to receive a smaller pay premium for those characteristics. This is especially the case for the firm size variable where female managers are less likely to be employed in higher paying large firms, and when they are, they receive a smaller firm‐size premium.

Research limitations/implications

This study uses a sample of small and medium‐sized enterprises (SMEs) in China. As such, the gender pay gap in larger firms or firms in large cities (e.g. Beijing or Shanghai) may not be represented by the findings of this study.

Practical implications

This study offers insights on how women executives are paid after they cross the “glass ceiling” and enter the managerial ranks in China. Female executives should be aware of the effects of firm characteristics on gender differences in compensation.

Originality/value

This study adds to the limited empirical literature on the gender pay gap among top executives using a matched establishment‐manager data set in China.

Details

Evidence-based HRM: a Global Forum for Empirical Scholarship, vol. 1 no. 1
Type: Research Article
ISSN: 2049-3983

Keywords

Article
Publication date: 4 September 2017

Maryna Tverdostup and Tiiu Paas

The purpose of this paper is to better understand the possible reasons behind gender pay disparities, focussing on the unique features of male and female human capital and their…

Abstract

Purpose

The purpose of this paper is to better understand the possible reasons behind gender pay disparities, focussing on the unique features of male and female human capital and their wage returns. Despite increasing convergence of male and female human capital attainments, substantial differences remain. Extraction of human capital components non-overlapping across genders provides more profound explanation of the unexplained wage gap of men and women.

Design/methodology/approach

Starting with the non-parametric matching-based decomposition technique, the authors extend the pay gap estimation framework and focus on males and females having no counterpart in a set of characteristics within the opposite gender. The authors identify gender-unique human capital in terms of differences in distribution of individual characteristics across men and women and gender-specific combination of human capital characteristics. Wage returns to gender-specific profiles are evaluated applying wage regression on both full distribution of earnings and wage quantiles. The research relies on the Survey of Adult Skills (PIAAC) database for Estonia, which incorporates both formal education and cognitive skill records.

Findings

The study identifies sets of characteristics and competencies exclusive for both genders, proving that male and female profiles cannot be directly compared. The results suggest that men possess high individual and combined abilities in numeracy and problem solving in technology-rich environment, not always reached by females. This potentiates men’s higher earnings in spite of their generally lower formal educational attainments. Wage gap analysis over the full distribution of earnings shows even larger “glass ceiling” effect for females, possessing woman-specific human capital.

Originality/value

The authors raise a research from a novel perspective towards a role of human capital in gender wage inequality. Instead of usual reference to observable gaps in male and female characteristics, the authors identify the gender-specific human capital profiles, to a large extent non-reached by the opposite gender. Analysed associations between gender-specific characteristics and earnings provide an insight to possible effects of gender-unique human capital on a male-female wage disparity.

Details

International Journal of Manpower, vol. 38 no. 6
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 21 September 2012

Ilias Livanos and Konstantinos Pouliakas

The purpose of this paper is to investigate the extent to which differences in the subject of degree studied by male and female university graduates contributes to the gender pay

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Abstract

Purpose

The purpose of this paper is to investigate the extent to which differences in the subject of degree studied by male and female university graduates contributes to the gender pay gap in Greece, an EU country with historically large gender discrepancies in earnings and occupational segregation. In addition, the paper explores the reasons underlying the distinct educational choices of men and women, with particular emphasis on the role of wage uncertainty.

Design/methodology/approach

Using micro‐data from the Greek Labour Force Survey (LFS), Oaxaca‐Blinder decompositions are employed to detect the extent to which gender differences in the type of degree studied can explain the male‐female pay gap. “Risk‐augmented earnings functions” are also used to examine the differential wage premiums offered to men and women in Greece in response to the uncertainty associated with different fields of study.

Findings

It is found that the subjects in which women are relatively over‐represented (e.g. Education, Humanities) are also those with the lowest wage returns. Gender differences in the type of degree studied can therefore explain an additional 8.4 per cent of the male‐female pay gap in Greece. A potential reason for distinct gender educational choices is that women opt for less uncertain educations that consequently command lower wage premiums in the job market.

Practical implications

The findings suggest that the promotion of gender equality in Greece should pay closer attention to removing informal barriers to entry for women in educational fields traditionally chosen by men (e.g. more effective careers advice, work‐experience placements, matching of young girls with professional “mentors”).

Originality/value

The paper is the first to investigate the contribution of individual's field of study to the gender wage gap in Greece. In addition, it includes the first‐ever estimations of “risk‐augmented earnings equations” for that country.

Details

Journal of Economic Studies, vol. 39 no. 5
Type: Research Article
ISSN: 0144-3585

Keywords

Article
Publication date: 5 October 2010

Laura M. Crothers, Ara J. Schmitt, Tammy L. Hughes, John Lipinski, Lea A. Theodore, Kisha Radliff and Sandra Ward

The purpose of this paper is to examine the salary and promotion negotiation practices of female and male school psychology practitioners and university instructors of school…

3914

Abstract

Purpose

The purpose of this paper is to examine the salary and promotion negotiation practices of female and male school psychology practitioners and university instructors of school psychology practitioners in order to determine whether salary differences exist between male and female employees in the field of school psychology, which has become a female‐dominated profession.

Design/methodology/approach

A total of 191 female and 115 male faculty members and 148 female and 56 male school psychologists completed a survey regarding salary, negotiation practices, and job satisfaction.

Findings

Results suggest that females earn less than male colleagues, controlling for years of experience and degree attainment. No gender differences were found regarding faculty participants' willingness to negotiate for increased salary; however, males were more likely to negotiate for promotion. Likewise, no gender differences were evident in practitioners' salary and promotion negotiation attempts, although none were expected, given the salary schedule constraints unique to occupations in the field of education.

Research limitations/implications

The paper is limited to one profession, albeit both university faculty and school psychology practitioners, and was conducted in the USA, so the findings may have limited generalizability to other professions and/or in other countries.

Practical implications

The paper demonstrates that gender pay differences exist despite no differences in males' and females' willingness to negotiate for salary. Consequently, it is likely that pay differences between men and women are due to reasons other than individuals' education levels, years in position, and negotiation practices.

Originality/value

This is the first paper that tracks salaries and the negotiating practices of school psychologist trainers and practitioners. It also finds that male/female salary differences carry over into a female‐dominated profession.

Details

Gender in Management: An International Journal, vol. 25 no. 7
Type: Research Article
ISSN: 1754-2413

Keywords

Article
Publication date: 4 July 2016

Morley Gunderson, Byron Y Lee and Hui Wang

The purpose of this paper is to estimate the union-nonunion pay gap impact separately for wages and bonuses as well as total compensation to include both wages and bonuses in…

Abstract

Purpose

The purpose of this paper is to estimate the union-nonunion pay gap impact separately for wages and bonuses as well as total compensation to include both wages and bonuses in China. The way in which the impact varies as control variables are added is illustrated as is how the impact varies by the type of firm ownership. The overall pay gap is also decomposed into a component due to differences in their pay determining characteristics as well as a component due to differences in their returns to those characteristics. These separate components are also calculated throughout the pay distribution.

Design/methodology/approach

Using the 2010 China Family Panel Studies Survey, a nationally representative survey in China, the methodology involves different estimation procedures as appropriate for the nature of the data and the dependent variables. First the authors estimate a single equation to determine the union-nonunion pay gap. Then the authors estimate the union impact on the various components of compensation (wages and bonuses). Next the authors decompose the relative contribution of each factor in explaining the wage gap. Finally, quantile regressions are used to examine the union impact across various levels of the pay distribution.

Findings

The authors find a gross union-nonunion pay gap (wages + bonuses) of 42 percent, dropping to 12 percent after controlling for the effect of other pay determining factors. The union impact on wages is only 8 percent, but bonuses are about twice as high for union workers. The union impact is essentially zero for (state-owned firms) SOEs and for foreign-owned firms but it is large at 16 percent for private firms and even larger at 22 percent for government agencies. Of the overall pay gap of 42 percent, about three-quarters is attributable to differences in their endowments of pay determining characteristics and about one-quarter to differences in the returns for the same endowments of characteristics. Quantile regressions reveal that the pure or adjusted union wage premium exhibits a u-shaped pattern being highest in the bottom and to a lesser extent the top of the pay distribution.

Originality/value

There are a dearth of studies examining the union-nonunion pay gap in China. Of the studies that examine this issue, all of them are at the enterprise level with no studies at the individual level. Taking a nationally representative dataset at the individual level, the authors are able to estimate the union-nonunion pay gap in China. The authors identify the portion of the gap that reflects differences in endowments of pay determining characteristics and the portion that reflects different returns to those characteristics, and the relative contribution of the different variables to those components; and how these components change over the pay distribution. The authors also offer explanations for many of these patterns.

Details

International Journal of Manpower, vol. 37 no. 4
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 27 May 2014

Sergio Scicchitano

The purpose of this paper is to investigate the existence of sticky floor and glass ceiling effects in the gender wage gap (GWG) among Spanish managers. In addition, the paper…

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Abstract

Purpose

The purpose of this paper is to investigate the existence of sticky floor and glass ceiling effects in the gender wage gap (GWG) among Spanish managers. In addition, the paper determines if the pay gap at every quantile is a result of the gender characteristic differences, or the differences in returns to those characteristics.

Design/methodology/approach

The paper exploits a counterfactual decomposition analysis, using quantile regression, to decompose the GWG into one component that is based on differences in characteristics and one component that is based on differences in coefficients across the wage distribution.

Findings

A significant GWG over all the wage distribution is found. Such a gap exhibits a clear U-shaped pattern, thus pointing out both significant sticky floor and glass ceiling effects. Furthermore, the paper shows that such pattern is mainly determined by the coefficient effect, whose relative incidence is almost continuously increasing along the wage distribution.

Research limitations/implications

While it is difficult to give a definitive explanation for the significant U-shaped pattern in the GWG and for the bigger incidence of the glass ceiling, the authors suggest two possible explanations that are consistent with these findings. The paper leaves the identification of these explanations to future research.

Practical implications

The pattern of rising coefficient effects at higher quantiles suggests that the glass ceiling is a more relevant question than the sticky floor. Indeed, at the highest wage quantiles, differences in characteristics make essentially no contribution to the overall wage gap. This suggests that upper-echelon female managers have the same characteristics as their male counterparts, which emphasizes the role of discrimination for these top-level jobs.

Originality/value

Despite the general GWG has been largely investigated, the analysis of a wage differential among managerial workers has certainly drawn much less attention. In particular just a few papers have investigated the existence of sticky floors and glass ceiling among managers. In addition, as to Spain, there is no empirical survey investigating and decomposing the gender pay gap among managers.

Details

International Journal of Manpower, vol. 35 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

Book part
Publication date: 6 August 2018

Julie L. Hotchkiss and Anil Rupasingha

The purpose of this chapter is to assess the importance of individual social capital characteristics in determining wages, both directly through their valuation by employers and…

Abstract

The purpose of this chapter is to assess the importance of individual social capital characteristics in determining wages, both directly through their valuation by employers and indirectly through their impact on individual occupational choice. We find that a person’s level of sociability and care for others works through both channels to explain wage differences between social and nonsocial occupations. Additionally, expected wages in each occupation type are found to be at least as important as a person’s level of social capital in choosing a social occupation. We make use of restricted 2000 Decennial Census and 2000 Social Capital Community Benchmark Survey.

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