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Article
Publication date: 2 August 2023

Jaan Masso and Priit Vahter

This paper investigates the relationship of both technological (product and process) and non-technological (organizational and marketing) innovation with the gender wage gap at…

Abstract

Purpose

This paper investigates the relationship of both technological (product and process) and non-technological (organizational and marketing) innovation with the gender wage gap at firms.

Design/methodology/approach

Using employer–employee level data from Estonia, the authors estimate Mincerian wage equations, in order to show how innovation at the firm level is associated with the gender wage gap. Next, the authors use propensity score matching (PSM) to study the effects of the movement of men and women into innovative firms, how this shapes the gender wage gap at firms.

Findings

The authors find that both technological and non-technological innovation are associated with a larger gender wage gap at firms. The relationship between innovation and the contemporaneous gender wage gap at firms reflects to a significant extent the different selection of men and women with different time-invariant characteristics to innovative firms. Further, the authors find that movement of men and women to work at innovative firms is in longer term associated with larger gains in wages for men. The authors also observe that the relationship of innovation with gender wage gap is stronger in the case of women with children.

Originality/value

Much of the prior analysis focuses on the effects of technological innovation on gender-related labour market outcomes. The authors show here that the relationship of innovation at firms with higher gender wage gap is not only specific to technological innovation, but is more general, and is observed across different types of innovation indicators, including non-technological innovation. This study's results suggest that the effects of innovation on gender wage gap may reflect to an extent the higher demand for flexibility of employees for work purposes at innovative firms, which may increase the gender wage gap, especially between men and women with children.

Details

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

Keywords

Article
Publication date: 1 April 2004

Kostas G. Mavromaras

This paper investigates the relative remuneration of migrants and German nationals in paid employment in pre‐unification Germany. Using microdata it shows that migrants typically…

Abstract

This paper investigates the relative remuneration of migrants and German nationals in paid employment in pre‐unification Germany. Using microdata it shows that migrants typically earn higher wages than comparable German nationals. The paper also shows the distinction between genders and skill levels to be crucial in the determination of wage gaps. Wage gaps are decomposed in the standard Oaxaca‐Blinder way and their development is examined using counterfactual analysis. The paper also shows that conventionally defined wage discrimination works in favour of migrants. Counterfactuals show that, largely, the remunerative advantage of migrants survived the 1981‐1983 recession. However, when employment developments are considered, a much bleaker picture arises. The 1981‐1983 recession destroyed jobs that have been traditionally occupied by migrants (manual and skilled jobs). Post‐recession restructuring generated jobs that went almost exclusively to German nationals (salaried jobs).

Details

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

Keywords

Article
Publication date: 25 February 2022

Simontini Das and Rhyme Mondal

The paper intends to identify the factors that determine the variations in the gender pay gap and female workforce participation at low-skill manufacturing job across Indian…

Abstract

Purpose

The paper intends to identify the factors that determine the variations in the gender pay gap and female workforce participation at low-skill manufacturing job across Indian states over the time period 2006–2014.

Design/methodology/approach

Gender pay gap is measured in two ways: one is scale insensitive and second one is scale sensitive. To construct scale-sensitive gender pay gap measure wage discrimination index is used. For main analysis, a panel framework is used. Fixed effect model and random effect model are estimated along with all relevant diagnostic tests.

Findings

Empirical analysis elucidates that male literacy rate, female literacy rate and gender parity index are important factors in explaining the variation in gender pay gap and women workforce participation at sub-national level in India. Female literacy rate significantly reduces the crude pay gap; however, it has insignificant effect on scale-sensitive gender pay gap in low-skill manufacturing sector. Educational enrolment widens up the crude wage gap but narrows down the other one. In case of workforce participation educational attainment and school enrolment both reduce women workforce participation in low-skill manufacturing job.

Research limitations/implications

The present research suffers from two major limitations. Due to lack of information, the paper is unable to study the impacts of female representation in trade unions, availability of supporting infrastructure like day-care facilities for working mothers, etc. in explaining the variation in gender pay gap and women workforce participation. The second limitation is that the research fails to address the issue related to selection into employment. The present paper uses the macro-level state-specific statistics instead of micro-level data; hence the imputed wage for unemployed but potential workers cannot be calculated.

Originality/value

The paper is unique in the sense that it highlights gender pay gap and female workforce participation issue in low-skill manufacturing sector at Indian sub-national level. There are no such papers that highlight these issues in the context of Indian manufacturing sector. Another contribution is that the present paper considers the scale-sensitive gender pay gap, whose determinants are different than crude gender pay gap.

Details

International Journal of Social Economics, vol. 49 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

Book part
Publication date: 23 January 2023

David Neumark and Giannina Vaccaro

Several studies find that there is little sex gap in wages at labor market entry, and that the sex gap in wages emerges (and grows) with time in the labor market. This evidence is…

Abstract

Several studies find that there is little sex gap in wages at labor market entry, and that the sex gap in wages emerges (and grows) with time in the labor market. This evidence is consistent with (i) there is little or no sex discrimination in wages at labor market entry, and (ii) the emergence of the sex gap in wages with time in the labor market reflects differences between women and men in human capital investment (and other decisions), with women investing less early in their careers. Indeed, some economists explicitly interpret the evidence this way. We show that this interpretation ignores two fundamental implications of the human capital model, and that differences in investment can complicate the interpretation of both the starting sex gap in wages (or absence of a gap), and the differences in “returns” to experience. We then estimate stylized structural models of human capital investment and wage growth to identify the effects of discrimination (or other sources of a starting pay gap) and differences in human capital investment.

Book part
Publication date: 1 April 2003

Trond Petersen, Eva M. Meyersson Milgrom and Vemund Snartland

We report three findings in a comprehensive study of hourly wage differences between women and men working in same occupation and establishment in Sweden in 1970–1990. (1) Within…

Abstract

We report three findings in a comprehensive study of hourly wage differences between women and men working in same occupation and establishment in Sweden in 1970–1990. (1) Within same occupation and establishment in 1990, women on average earn 1.4% less than men among blue-collar workers, 5.0% less among white-collar employees. This occupation-establishment level wage gap declined strongly from 1970 to 1978. (2) For white-collar employees, occupational segregation accounts for much of the wage gap, establishment segregation for little. For blue-collar workers both types of segregation are important. (3) The within-occupation gaps are small, below 4% and 7% for blue- and white-collar workers.

Details

The Governance of Relations in Markets and Organizations
Type: Book
ISBN: 978-1-84950-202-3

Article
Publication date: 5 December 2023

Anthony Orji and Emmanuel O. Nwosu

This study investigated the gender wage gap in Nigeria by analysing two waves of household surveys (in 2003–2004 and 2018–2019) in order to understand the dynamics or polarisation…

Abstract

Purpose

This study investigated the gender wage gap in Nigeria by analysing two waves of household surveys (in 2003–2004 and 2018–2019) in order to understand the dynamics or polarisation of the labour market in Nigeria in terms of the gender wage gap over time.

Design/methodology/approach

The study applied an extension of Oaxaca–Blinder decomposition that relies on the re-centred influence function (RIF) regressions to analyse the gender wage gap at all points along the wage distribution.

Findings

The results unambiguously show that there is a significant gender wage gap in Nigeria at all points along the wage distribution, such that for the two surveys used and after nearly two decades, men still earn more than women. That is, the log wage difference between males and females is statistically significant at all points between the 10th and the 90th quantiles. In 2003–2004 period, the authors found that most of the wage difference was significantly accounted for by the wage structure effect, whilst the composition effect was negative and only significant at the bottom of the wage distribution. Since the 2018–2019 period, the authors found that there has been a visible change such that most of the gender wage gap is now accounted for by the composition effect at all points along the wage distribution. Another interesting finding is that there has been a general decline in the gender wage gap along the entire wage distribution, such that inequality was higher in 2003–2004 than in 2018–2019. This decline is bigger at the top than at the bottom of the wage distribution. The authors also found that, contrary to some of the studies on the wage gap, the raw gaps for the two surveys appear to show inverted U-shape, but the gap has fallen quickly since the 2018–2019 period. Thus, the authors found strong evidence of a “sticky floor” compared to a “glass ceiling” effect in both periods, and this becomes more pronounced over time. In terms of the contributions of individual covariates on gender pay gap in Nigeria, the authors found that urban residence, unionisation, education and occupation variables exhibit major influence. However, the effects of covariates on the composition and wage structure components of the wage gap have changed over time.

Practical implications

The major policy implication of these findings is that to address the gender wage gap in Nigeria, policy should focus more on how labour is rewarded and improving human capital for women.

Originality/value

This study is a novel paper in Nigeria that has investigated the gender wage gap in Nigeria by extending the focus of literature in three ways. First, the authors applied an extension of Oaxaca–Blinder decomposition that relies on the RIF regressions to analyse the gender wage gap at all points along the wage distribution. Second, the authors used sample selection bias to account for the non-randomness of participation in wage employment. And third, the authors applied similar analysis to two waves of household surveys (in 2003/2004 and 2018/2019) in order to understand the dynamics or polarisation of the labour market in Nigeria in terms of the gender wage gap over time.

Details

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

Keywords

Book part
Publication date: 23 June 2016

Esfandiar Maasoumi and Yifeng Zhu

We examine the potential effect of naturalization on the U.S. immigrants’ earnings. We find the earning gap between naturalized citizens and noncitizens is positive over many…

Abstract

We examine the potential effect of naturalization on the U.S. immigrants’ earnings. We find the earning gap between naturalized citizens and noncitizens is positive over many years, with a tent shape across the wage distribution. We focus on a normalized metric entropy measure of the gap between distributions, and compare with conventional measures at the mean, median, and other quantiles. In addition, naturalized citizen earnings (at least) second-order stochastically dominate noncitizen earnings in many of the recent years. We construct two counterfactual distributions to further examine the potential sources of the earning gap, the “wage structure” effect and the “composition” effect. Both of these sources contribute to the gap, but the composition effect, while diminishing somewhat after 2005, accounts for about 3/4 of the gap. The unconditional quantile regression (based on the Recentered Influence Function), and conditional quantile regressions confirm that naturalized citizens have generally higher wages, although the gap varies for different income groups, and has a tent shape in many years.

Details

Essays in Honor of Aman Ullah
Type: Book
ISBN: 978-1-78560-786-8

Keywords

Abstract

We analyze the evolution of the gender wage gap in Mexico between 1989 and 2012, a period in which skill-biased technological change accelerated. We deviate from most prior work investigating the gap across the wage distribution. We find substantial gender wage convergence in the decade of the 2000s at the mean and, more markedly, at the upper and lower ends of the wage distribution, alongside little change in the median wage gap. The gender wage gap at the 90th percentile was largely eliminated by the year 2012 and, at the 10th percentile, it narrowed by a fourth of its 1990 level. This narrowing of gender inequality in wages occurred alongside a narrowing of inequality in wages within each gender group. The share of college-educated women relative to men in the work force grew substantially over the two decades, and they sorted disproportionately into brain-intensive occupations, where the gender wage gap fell sharply. The wage return to being in a brain-intensive occupation was, in both periods, greater for women; it declined for men while rising for women during the 2000s. Our findings demonstrate how structural economic change may interact with a biologically premised comparative advantage of women in brain-intensive occupations to raise their relative wages. Our results also underline the relevance of studying changes across the wage distribution.

Details

Gender Convergence in the Labor Market
Type: Book
ISBN: 978-1-78441-456-6

Keywords

Book part
Publication date: 28 March 2006

June E. O’Neill and Dave M. O’Neill

With the signing of the Civil Rights Act of 1964, discrimination in employment with respect to the hiring, promotion and pay of minorities and women became illegal in the United…

Abstract

With the signing of the Civil Rights Act of 1964, discrimination in employment with respect to the hiring, promotion and pay of minorities and women became illegal in the United States.1 Yet, 40 years later, earnings differentials still persist between certain minorities and white non-Hispanics and between women and men. For example, although the ratio of black men's earnings to those of white men and of black women's to white women's have increased considerably over the past 50 years, the black–white ratio was still only 78% in 2003 among men and 87% among women (Fig. 1). Hispanic–white wage differentials are larger than the black–white differential among both men and women (Figs. 2 and 3). And despite a significant narrowing in the gender gap, the ratio of women's earnings to men's was about 76% in 2003 (Fig. 4).2

Details

The Economics of Immigration and Social Diversity
Type: Book
ISBN: 978-1-84950-390-7

Book part
Publication date: 20 June 2003

Susan Harkness and Jane Waldfogel

In this paper, we use microdata on employment and earnings from a variety of industrialized countries to investigate the family gap in pay – the differential in hourly wages

Abstract

In this paper, we use microdata on employment and earnings from a variety of industrialized countries to investigate the family gap in pay – the differential in hourly wages between women with children and women without children. We present results from seven countries: Australia, Canada, the United Kingdom, the United States, Germany, Finland, and Sweden. We find that there is a good deal of variation across our sample countries in the effects of children on women’s employment and in the effects of children on women’s hourly wages even after controlling for differences between women with and without children in characteristics such as age and education. We also find that the variation in the family gap in pay across countries is not primarily due to differential selection into employment or to differences in wage structure across countries. We suggest that future research should examine the impact of family policies such as maternity leave and child care on the family gap in pay.

Details

Worker Well-Being and Public Policy
Type: Book
ISBN: 978-1-84950-213-9

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