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1 – 10 of over 18000This 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.
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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).
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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.
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Francisco Jose Callado Muñoz and Natalia Utrero-González
This paper aims to analyse gender wage gaps by university majors along the entire wage distribution in Spain before and after the 2008 financial crisis.
Abstract
Purpose
This paper aims to analyse gender wage gaps by university majors along the entire wage distribution in Spain before and after the 2008 financial crisis.
Design/methodology/approach
The authors perform unconditional quantile regressions to estimate the gender wage gap and use the Oaxaca–Blinder approach to decompose the gender gap.
Findings
The observed gender gap among graduates hides significant differences across various fields of study, and both the gap and its unexplained part are highly dependent on the position in the distribution. Engineering and Experimental sciences are the fields with the highest wage differences, and the gap size worsens with the crisis. Health and Humanities, the majors with the highest women presence, show a higher proportion of unexplained part at the bottom tail of the wage distribution, especially after the crisis, suggesting that discrimination against low-paid women has aggravated in these majors.
Originality/value
The paper adds to the existing knowledge by analysing the role that educational decisions play in shaping the wage gap, the variability of the gap along the wage distribution and its response to a change in macroeconomic conditions.
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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.
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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.
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.
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Sonia R. Bhalotra, Manuel Fernández and Atheendar S. Venkataramani
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…
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.
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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
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.