Occupational Segregation and the Female–Male Wage Differentials: Evidence for Spain

Abstract

Using matched employer–employee data from the Spanish labour market in 2010, we analyse the effects of industrial, establishment and occupational segregation on the gender wage differential, disaggregating the latter contribution by different groups of workers belonging to different occupational areas and responsibility levels. These workers are employed in 61 occupations within 26,492 establishments in 51 different industries. Since the matched employer–employee data exhibit a particular type of grouped structure, which contrasts the statistical properties of such data with the random sample case, we estimate the effects of each type of gender segregation on the wage gap using a robust specification. We find that the major part of the contribution of gender segregation is not explained by differences in the observable characteristics. Furthermore, the estimations show that the educational female advantage has helped to narrow the gender wage gap caused by occupational segregation within each establishment only for those groups of workers with the lowest educational requirements.