Sorting the Gender Earnings Gap: Heterogeneity in the South African Labor Market

Abstract

This study explores inequality among Africans in the South African labor market by investigating heterogeneity in the gender earnings gap. The article adds to the existing literature by applying an innovative sorting method, which provides a complete mapping of heterogeneity in the gender earnings gap, ordering the full distribution of the partial effects from largest to smallest with respect to the underlying characteristics of the population of interest. This makes it possible to identify the extent of the dispersion in earnings inequality as well as those characteristics that are associated with very large, as well as very small (or even reversed), gender gaps in earnings. The study also compares heterogeneity in the hourly and monthly gender earnings gap to assess how adjusting for working hours affects the correlates of earnings inequality. HIGHLIGHTS There is significant heterogeneity in the size of the gender earnings gap in South Africa. This is illustrated using a technique that maps the full distribution of earnings differences. Marriage, children, and geography are important sources of heterogeneity. There is more heterogeneity in the monthly, than hourly, gender earnings gap.