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Article
Publication date: 1 April 2005

Shoshana Neuman and Ronald L. Oaxaca

To examine gender and ethnic wage structures and wage differentials an Israel and decompose the difference in wages into endowments, discrimination and selectivity components.

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Abstract

Purpose

To examine gender and ethnic wage structures and wage differentials an Israel and decompose the difference in wages into endowments, discrimination and selectivity components.

Design/methodology/approach

Selection and wage equations are estimated for each of the population groups (Eastern women, Western women, Eastern men, Western men) separately. The wage equations are corrected for selectivity using the Heckman procedure and subsequently wage differentials are decomposed into the three components mentioned above, using four alternative decompositions suggested in 2004 by Neuman and Oaxaca.

Findings

Gender wage differentials are significantly larger than ethnic differences. Discrimination is more common between the genders. The four alternative decompositions – that are based on different assumptions and objectives – yield different results.

Research limitations/implications

Decomposition of wage differences between groups needs to take into account information on the local relevant labor market and the wage setting process.

Practical implications

Information on the relative shares of the endowments, discrimination and selectivity components leads to a more effective way to close wage gaps.

Originality/value

Employment of new proposed decomposition methodologies that might lead to practical implications to combat gender and ethnic wage gaps in Israel.

Details

International Journal of Manpower, vol. 26 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 2 November 2015

Sten Anspal

The Ñopo (2008) method of non-parametric decomposition, a matching-based alternative to Oaxaca (1973) and Blinder’s (1973) method of wage gap decomposition, is subject to the…

Abstract

Purpose

The Ñopo (2008) method of non-parametric decomposition, a matching-based alternative to Oaxaca (1973) and Blinder’s (1973) method of wage gap decomposition, is subject to the so-called “index number problem” common to the Oaxaca-Blinder and many related methods: its results are sensitive to the (arbitrary) choice of either male or female sex as the reference category in decomposition. The purpose of this paper is to address this issue by proposing an extension to the method that is invariant to the choice of reference category.

Design/methodology/approach

The Ñopo method is modified such that the wage structure of the average worker instead of either male or female worker’s is used as the reference, enabling one to distinguish the “male advantage” and “female advantage” portions of the gender wage gap. As an illustration, a decomposition of the gender wage gap is performed with the modified method, using data from 15 OECD countries.

Findings

The empirical results using the Ñopo decomposition indicate substantial differences in estimates of the unexplained gap depending on which sex is used as the reference category. Moreover, this disparity varies significantly with the choice of covariates used in the decomposition. This confirms there is significant cross-country variation in the asymmetry between male advantage and female disadvantage and that a decomposition method making this explicit would be relevant in real world settings.

Originality/value

The extension of the Ñopo method proposed in this paper offers a way of decomposing the wage gaps in a way that is not sensitive to the choice of the reference category.

Details

International Journal of Manpower, vol. 36 no. 8
Type: Research Article
ISSN: 0143-7720

Keywords

Book part
Publication date: 27 August 2016

Yang Wang, Nora Lustig and Otavio Bartalotti

Between 1995 and 2012, the wage distribution of male workers in Brazil shifted to the right and became less dispersed. This paper attempts to identify the reasons for that…

Abstract

Between 1995 and 2012, the wage distribution of male workers in Brazil shifted to the right and became less dispersed. This paper attempts to identify the reasons for that movement in male wage distribution, focusing on the impact of education expansion on wage distribution. The Oaxaca-Blinder (OB) and Recentered Influence Function (RIF) decomposition results show that both changes in returns on skills and upgrades in the composition of work skills contribute to increases in the average wage and wages at the 10th and 50th percentiles. The shifts in returns to skills had a decreasing impact on wages at the 90th percentile and are identified as the primary force reducing wage inequality. Education expansion had an equalizing impact on wage distribution, primarily through the decline in return to education.

Details

Income Inequality Around the World
Type: Book
ISBN: 978-1-78560-943-5

Keywords

Article
Publication date: 30 May 2022

Victor Rudakov, Margarita Kiryushina, Hugo Figueiredo and Pedro Nuno Teixeira

The aim of the research is to estimate the level of the early career gender wage gap in Russia, its evolution during the early stages of a career, gender segregation and…

Abstract

Purpose

The aim of the research is to estimate the level of the early career gender wage gap in Russia, its evolution during the early stages of a career, gender segregation and discrimination among university graduates, and to identify factors which explain early career gender differences in pay. Special emphasis is placed on assessing the contribution of horizontal segregation (inequal gender distribution in fields of studies and industries of employment) to early-career gender inequality.

Design/methodology/approach

The study is based on a comprehensive and nationally representative survey of university graduates, carried out by Russian Federal State Statistics Service in 2016 (VTR Rosstat). The authors use Mincer OLS regressions for the analysis of the determinants of gender differences in pay. To explain the factors which form the gender gap, the authors use the Oaxaca-Blinder and Neumark gender gap decompositions, including detailed wage gap decompositions and decompositions by fields of study. For the analysis of differences in gender gap across wage distribution, quantile regressions and quantile decompositions based on recentered influence functions (RIFs) are used.

Findings

The study found significant gender differences in the early-career salaries of university graduates. Regression analysis confirms the presence of a 20% early-career gender wage gap. This gender wage gap is to a great extent can be explained by horizontal segregation: women are concentrated in fields of study and industries which are relatively low paid. More than half of the gender gap remains unexplained. The analysis of the evolution of the gender wage gap shows that it appears right after graduation and increases over time. A quantile decomposition reveals that, in low paid jobs, females experience less gender inequality than in better paid jobs.

Social implications

The analysis has some important policy implications. Previously, gender equality policies were mainly related to the elimination of gender discrimination at work, including positive discrimination programs in a selection of candidates to job openings and programs of promotion; programs which ease women labour force participation through flexible jobs; programs of human capital accumulation, which implied gender equality in access to higher education and encouraged women to get higher education, which was especially relevant for many developing countries. The analysis of Russia, a country with gender equality in access to higher education, shows that the early career gender gap exists right after graduation, and the main explanatory factor is gender segregation by field of study and industry, in other words, the gender wage gap to a high extent is related to self-selection of women in low-paid fields of study. To address this, new policies related to gender inequality in choice of fields of studies are needed.

Originality/value

It has been frequently stated that gender inequality appears either due to inequality in access to higher education or after maternity leave. Using large nationally representative dataset on university graduates, we show that gender equality in education does not necessarily lead to gender equality in the labour market. Unlike many studies, we show that the gender gap in Russia appears not after maternity leave and due to marital decisions of women, but in the earliest stages of their career, right after graduation, due to horizontal segregation (selection of women in relatively low-paid fields of study and consequently industries).

Abstract

Details

The Creation and Analysis of Employer-Employee Matched Data
Type: Book
ISBN: 978-0-44450-256-8

Article
Publication date: 5 June 2017

Hipolito Simon, Esteban Sanroma and Raul Ramos

The purpose of this paper is to examine wage differences between part- and full-time workers distinguishing by gender by using a large Spanish matched employer-employee data set…

Abstract

Purpose

The purpose of this paper is to examine wage differences between part- and full-time workers distinguishing by gender by using a large Spanish matched employer-employee data set and an econometric decomposition that permits to decompose wage differences by quantiles of the wage distribution.

Design/methodology/approach

The research is based on cross-section matched employer-employee microdata from a large representative survey (the Encuesta de Estructura Salarial) which is carried out with a harmonised methodology common to all European Union member countries and that has been designed specifically to provide reliable evidence about characteristics of the wage distribution such us wage differentials associated with the type of working time. From a methodological point of view, the econometric decomposition technique proposed recently by Fortin et al. (2011) to decompose wage differences between part-time and full-time workers by quantiles of the wage distribution is applied. This methodology has the advantage over similar techniques that provides a detailed decomposition of wage differentials and has not been used before to examine the wage impact of part-time jobs.

Findings

The results show that the significant raw wage gap that part-time workers experience in Spain differs substantially along the wage distribution. In the case of part-time females, the wage disadvantage is mostly explained by their relative endowments of characteristics (and particularly by their lower endowments of human capital and their segregation into low-wage sectors) but a significant wage penalty still persists, increasing along the wage distribution. In the case of males the wage disadvantage is only found in the lower part of the distribution and it is due both to their worst endowments of characteristics and a significant wage penalty.

Research limitations/implications

The evidence for Spain shows that the part-time work tends to affect differently to the wages of males and females, with a higher part-time penalty for males, as predicted by the “flexibility stigma” hypothesis, and penalising low-qualified men in the lower part of the wage distribution and high-qualified women in the upper part of the distribution the most.

Originality/value

The analysis contributes to the literature by examining wage differences along the wage distribution for both genders using econometric decomposition methods, an aspect that to the authors’ knowledge has been examined only scarcely in the international literature with non-conclusive evidence and has not been examined in previous studies for the Spanish case. In this vein, Spain is a particularly interesting analysis case from an international perspective of the wage consequences of part-time jobs, given that in contrast with most other advanced countries a majority of part-time employment in this country is involuntary and this phenomenon is especially affecting disadvantaged groups.

Details

International Journal of Manpower, vol. 38 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 13 September 2022

Valentina Ferri, Thaís García-Pereiro and Roberta Pace

In this article, the authors study the gender pay-gap (GPG) among graduates in Italy (2011 cohort) who were employed four years after graduation. The authors focus on individuals…

Abstract

Purpose

In this article, the authors study the gender pay-gap (GPG) among graduates in Italy (2011 cohort) who were employed four years after graduation. The authors focus on individuals who are new entering in the labour market or who match a low level of experience with a high level of education.

Design/methodology/approach

Aimed at estimating the amount of the differential between male and female average wages, the authors have applied the Oaxaca–Blinder (O–B) decomposition. The results identify the presence of a GPG at the very beginning of graduates’ careers given that, shortly after graduation, women receive lower salaries than men, even after controlling for several characteristics (individual, academic, job and local labour market). The authors completed the analysis with the reweighted O–B decomposition using the recentered influence function (RIF) and the Juhn, Murphy and Pierce and Machado and Mata decomposition approaches.

Findings

The results show that the GPG is already present at the very beginning of graduates’ careers, and it increases when correcting for women’s lower level of participation in the labour market. The authors also identified sticky floor and the glass ceiling effects due to the existence of a relevant high GPG both at the bottom and the top of the graduates’ wage distribution.

Originality/value

By focussing attention particularly on graduates, this paper adds to the existing literature a deeper understanding not only of individuals who have recently entered the labour market, but also those who are highly skilled but have little on-the-job experience. In fact, the authors are looking at a particular sample (graduates who are all transitioning from university to work during the same period) with small heterogeneity which allows the authors to compare very similar young men and women graduates and gain a deeper understanding of GPGs in early careers while controlling for confounding and hidden sources of variability.

Article
Publication date: 11 February 2019

Amy Y.C. Liu

The purpose of this paper is to examine the earnings differentials between the locals and the rural–urban migrants in urban labor market in Vietnam.

Abstract

Purpose

The purpose of this paper is to examine the earnings differentials between the locals and the rural–urban migrants in urban labor market in Vietnam.

Design/methodology/approach

Using the new Vietnam Rural-Urban Migration Survey 2013 (VRUMS2013) that is specifically designed for rural–urban migration, the author applies Appleton et al.’s (1999) procedure correcting for potential selectivity to decompose the offered earnings gap between the locals and the rural–urban migrants into within- and between-occupation pay differential. Bootstrapping is used to derive the standard errors for the decomposition results. The author further applies the propensity score matching (PSM) method to check whether the results are robust by restricting the sample to the “common support.”

Findings

Within-job difference, particularly, the favorable treatment toward urban workers contributes significantly to the overall and total unexplained earnings gap. Further, between-job pay differential attributed to the over-representation of urban workers in high-paying job also helps to widen the gap. These results are robust restricting to the “common support” sample using PSM.

Research limitations/implications

Due to the sample size, occupations are only classified into three broad categories. Finer classification will allow a better comparison between the contributions of between and within-occupation to earning inequality. The data are only limited to a few cities and do not include other urban centers that also receive rural–urban migrants.

Practical implications

Policies to promote equal pay and alleviate within-job “discrimination,” especially the preferential treatment favoring the locals (rather than to provide equal access to different jobs) are crucial for migrants’ labor outcome. Moreover, this study can, to some extent, be seen as a timely contribution for the debate on household registration reform in general and in Vietnam specifically. Given China’s announcement to grant permanent household registration (hukou) to unregistrated migrants in late 2015, investigating whether there is a two-tier labor market in the cities in Vietnam is particularly important for the ongoing debate regarding future of household registration system (ho khau).

Originality/value

This is the first study in Vietnam on rural–urban migration and occupation segregation – an area that has been relatively less well studied in developing/transitional countries. Vietnam is also one of the few developing countries who have household registration system in place. This has made it an interesting case. The author uses a new survey data to apply the Appleton et al. (1999) decomposition on the offered wage gap rather than observed wage gap. Standard errors of the decomposition results are bootstrapped and a robust check using propensity score method is conducted.

Details

International Journal of Manpower, vol. 40 no. 1
Type: Research Article
ISSN: 0143-7720

Keywords

Article
Publication date: 27 September 2022

Gustavo A. García, Diego René Gonzales-Miranda, Óscar Gallo and Juan Pablo Roman Calderon

This study aims to measure the gender wage gap among millennial workers in Colombia and determine if there is a marked wage difference between millennial women and men…

Abstract

Purpose

This study aims to measure the gender wage gap among millennial workers in Colombia and determine if there is a marked wage difference between millennial women and men. Furthermore, this study analyzes whether millennial women face a glass ceiling, that is, whether there is a larger gender wage gap among workers earning relatively high wages.

Design/methodology/approach

The study data included a sample of 2,144 millennial workers employed in 11 organizations located in the five main cities of Colombia. Oaxaca–Blinder econometric methods of wage decomposition were used to calculate both raw and adjusted gender wage gaps. The latter results in estimating the gender wage gap while controlling for observable characteristics related to individual, family, and labor. In addition, wage decompositions by education levels were carried out to approximate the extent of the glass ceiling among young workers.

Findings

The results show that millennial workers in Colombia face gender inequality in the labor market and that professional millennial women experience a distinct glass ceiling. The adjusted gender wage gap is 9.5%, and this gap increases with education level, increasing to nearly 14% among college-educated workers.

Research limitations/implications

The empirical results are supported by a self-report survey of millennial workers. An important limitation is that the data include millennial workers employed in the formal sector and exclude the informal sector (activities not regulated or protected by the state), which represents an important part of the economy in developing countries.

Originality/value

This paper contributes to the empirical literature on gender wage inequality for younger workers. This paper is original in reviewing the gender pay gap in Colombia using a primary dataset. Most of the work in this area has been done in developed countries and this research adds to the findings that have had focused on those nations.

Details

Employee Relations: The International Journal, vol. 45 no. 2
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 1 April 2004

Carola Grün

Only few studies have examined gender wage differentials and the extent of gender discrimination in South Africa. The following analysis covers several years after the end of…

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Abstract

Only few studies have examined gender wage differentials and the extent of gender discrimination in South Africa. The following analysis covers several years after the end of Apartheid to describe the development of gender wage differentials and discrimination over time. Furthermore, it is also taken into account that labour force participants may have different probabilities of finding employment. By estimating selectivity corrected wage regressions it is not only possible to decompose wage gaps into the well‐known endowment and discrimination components but also detect the so‐called indirect effects that already arise at the selection into employment stage. Results obtained from this approach can drastically change the impression of wage discrimination gained from standard decomposition techniques. African women were found to increasingly suffer from discrimination at the hiring stage, whereas White women are more affected by direct wage discrimination.

Details

International Journal of Manpower, vol. 25 no. 3/4
Type: Research Article
ISSN: 0143-7720

Keywords

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