Abstract

We examine the gender wage gap in Austria from 2005 to 2017 using data from EU-SILC. The raw gap of hourly wages declined from 18.6 log points in 2005 to 14.9 log points in 2017. We use standard decomposition techniques that correct for differences in the distributions of human capital and other variables between men and women. Decompositions of the wage gap indicate that both the explained and the unexplained part of the gender wage gap decreased substantially over the last ten years. Using the approach developed by Neumark (J Hum Resour 22:279–295, 1988), the unexplained wage gap shrank from 8.7 log points in 2005 to 5.1 log points in 2017. The main reason for the decline in wage differences was the relative improvement of women’s observed and unobserved characteristics.

Highlights

  • Goldin (2014) demonstrated that the US gender wage gap is much smaller than it had once been and she concludes that this decline is the result of increases in the human capital of women relative to men

  • The decrease of the unexplained gender wage gap between the largest gap in this period (2006) and the most recent gap (2017) ranges from 3.7 log points to 8.5 log points depending on the decomposition approach

  • The decrease of the unexplained gender wage gap between 2006 and 2017 ranges from 3.7 log points to 8.5 log points depending on the decomposition approach

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Summary

Introduction

Goldin (2014) demonstrated that the US gender wage gap is much smaller than it had once been and she concludes that this decline is the result of increases in the human capital of women relative to men. The unexplained component of the US gender wage gap did not fall much between the 1990s and 2010. They conclude that differences in the selection into occupations and industries are the most important aspect of the persistent US gender wage gap. For example, Zweimüller and Winter-Ebmer (1994), Pointner and Stiglbauer (2010), Bundesministerium (2010), Grandner and Gstach (2015) or Christl and Köppl-Turyna (2020). This makes an assessment of the gender wage gap’s evolution over time difficult

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Conclusion

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