Gender Wage Differentials Research Articles

Gender Wage Differentials Among Highly Educated in Urban India

This study aims to answer two questions. First, whether highly educated women face a wage penalty compared to their men counterparts in urban India? Second, if there exists a gender wage penalty, then what has happened to its size over time? We use the unit level employment–unemployment data of the National Sample Survey (NSS) for two rounds: 2004–05 and 2011–12 and employ the Neuman and Oaxaca (2004) method to estimate the average wage gap accounting for selection bias. We find that the highly educated men in urban India earn about 30% more than their women counterparts, and there is a marginal decline in the gender wage gap between 2004–05 and 2011–12. The gender wage gap scenario is worse in the ‘post-graduate and above’ sample than in the ‘graduate’ sample. In the ‘graduate’ sample, the wage gap declined between 2004–05 and 2011–12, whereas the gap increased in the ‘post-graduate and above’ sample. Though the gender wage gap among the highly educated as a whole has declined in urban India, the magnitude of the gap is still sizable.

Does information disclosure affect the gender gap in bidding behavior? Empirical evidence from a natural experiment on a large online labor platform

Exploiting an exogenous change in information disclosure on one of the largest online labor platforms worldwide, we assess how the provision of more information on the employers’ willingness to pay (WTP) and the required experience level of workers affects the gender gap in bidding behavior. We find that female workers make lower wage proposals than male workers if the employers’ WTP for a project, as given by its budget, is disclosed in addition to the (exogenously enforced) experience level of workers that employers deem necessary for the job, i.e., low, intermediate, or high. In addition, we do not find robust empirical support for the hypothesis that female workers’ under-confidence in their skills increases the gender gap in bidding behavior. Finally, we find a statistically significant gender wage gap of 16.8 %, which is reduced to 1.5 % when we control for employer, worker, and project characteristics. Once we include workers’ wage proposals in our agreed-upon wage regressions, the gender wage gap virtually disappears (0.2 %) and is statistically insignificant. This suggests that gender differences in wage expectations pertain to gender differences in wages.

The Role of Flexible Wage Components in Gender Wage Difference

The Role of Flexible Wage Components in Gender Wage Difference

An analysis of educational mismatch on wages in the agroindustrial sector

AbstractThe food industry is one of the most important industries in developed economies. The progressive professionalization of its workforce and the persistent demand for low‐skilled employment in this sector may be leading to educational mismatch with its concomitant effects on wages and productivity. Yet the economic literature has not addressed wage structures, gender differences, and the composition of the labor force together in this food industry. We analyzed the effects of educational mismatch on wages in the Spanish food industry from a gender perspective. To this end, we used data from the 2018 Wage Structure Survey collected by the Spanish National Institute of Statistics. We applied the overeducated, required educated, undereducated specification to these data. The main results show that educational mismatch leads to gender wage differentials in this sector. The analysis also shows that the Spanish food industry places more value on men with adequate education and women with some level of overeducation. The results on occupational segregation show that the food industry penalizes access to female‐dominated occupations, and that this wage disadvantage is greater for female workers. We also observed wage differences in the remuneration of certain personal and professional factors that could be worsening the gender differentials in the Spanish food industry [EconLit Citations: I26, J16, J21, J24, J31].

Gender wage difference estimation at quantile levels using sample survey data

This paper is motivated by the growing interest in estimating gender wage differences in official statistics. The wage of an employee is hypothetically a reflection of her or his characteristics, such as education level or work experience. It is possible that men and women with the same characteristics earn different wages. Our goal is to estimate the differences between wages at different quantiles, using sample survey data within a superpopulation framework. To do this, we use a parametric approach based on conditional distributions of the wages in function of some auxiliary information, as well as a counterfactual distribution. We show in our simulation studies that the use of auxiliary information well correlated with the wages reduces the variance of the counterfactual quantile estimates compared to those of the competitors. Since, in general, wage distributions are heavy-tailed, the interest is to model wages by using heavy-tailed distributions like the GB2 distribution. We illustrate the approach using this distribution and the wages for men and women using simulated and real data from the Swiss Federal Statistical Office.

Gender wage differential in the labour market of Bhutan (2009-2022)

This study investigated striking gender wage differentials trend in Bhutan between 2009 and 2022. In order to decompose the gender wage differentials, we used household level micro-data of Labor Force Survey (LFS), which was conducted by then Ministry of Labor and Human Resources (MoLHR) and National Statistics Bureau (NSB). The methodology estimates the sources of gender wage differentials by segregating gender-specific factors and general wage structure factors. The explanatory variables like women’s labor market skills (education, work experience) and women’s choice into certain occupational and industrial groups; and treatment towards women employees by employers (i.e., discrimination) are categorized into gender-specific factors. Whereas, the sum of observed prices of labor market skills (education and work experience) and price of women’s segregation into certain occupational and industrial groups and unobserved prices were termed wage structure factors. The result shows that gap in education and women’s choice into low paying jobs increased gender wage differentials. However, increase in women’s work experience narrowed the gender wage differential. Therefore, the widening gender wage differentials resulted from gender-specific factors by huge margin. The findings from this study will help decision and policy makers in developing policies which helps narrowing education and skills gaps between men and women. In addition, it will also help in drafting policies which helps women in getting better paying jobs.

Gender Differences in Migrant Workers’ Wages and Their Influencing Factors in the Central Hilly Regions of China

Since the reform and opening up, the socioeconomic status of women in rural China has risen rapidly. However, unlike men, women have not been able to earn higher wages by “working in all directions”. Based on the interview data of 2064 migrant workers, this paper explores the nonlinear interaction of individual characteristics and urban geographic factors with gender differences in migrant workers’ wages with the help of random forest regression models. The results show the following: (1) migrant workers’ wages show obvious gender differences in different dimensions, but in general, men’s wages are higher than women’s wages; (2) there are also gender differences in the influencing factors of migrant workers’ wages. Work experience is more important for male migrant workers’ wages, age is more important for female migrant workers’ wages, and there is a variable effect of each factor on migrant workers’ wages. This paper is of great help in understanding the travel trajectories of migrant workers and gender differences in wages and holds reference value for guiding migrant workers in choosing jobs and places and increasing their income.

MAIN DIRECTIONS FOR THE DEVELOPMENT OF WOMEN'S HUMAN CAPITAL ON THE PLATFORM

The article presents the main directions for the development of female human capital on the crowdfunding platform, as well as the gender aspect of projects successfully funded through the crowdfunding platform, gender equality in paid work in Uzbekistan, gender differences in wages, index indicators of countries.

Socio-Economic Well-Being of the Population of Kazakhstan: Assessment and Analysis of Gender Differences in Wages

For the Kazakhstani labor market, as well as for all world countries, the issue of gender inequality is relevant. The purpose of this study is to analyze the current level of employment among men and women in the regions of the Republic of Kazakhstan. To achieve the goal of the study, the following tasks were set: to study the structure of employment in the regional aspect in terms of gender; to analyze the gap in the payment of average wages between men and women on the basis of the method of calculation proposed by the International Labor Organization; analyze the types of economic activity by the share of employed men and women and by the size of the average wage; consider the areas of economic activity with the highest wages. In the study and analysis of the factor of gender differences, a theoretical and empirical analysis was used. The analytical information from various sources of both local and international studies was studied. National statistics on demographics, socio-economic development and human development for the country as a whole, international and regional comparative statistics and indicators in the field of gender equality and women’s empowerment were studied. A conclusion is proposed about the existing dependence of the level of average wages of women and men on the type of economic employment in which they are involved. The results of this study will substantiate the current state of employment and wages among men and women in the Republic of Kazakhstan.

Gender Wage Gap among Rural Non-farm Sector Employees in India: Evidence from Nationally Representative Survey

This article examines the gender-wise work participation rate and evaluates the wage disparity between male and female workers employed as either regular or casual employees in rural non-farm sectors. Based on the National Sample Survey data of 2004–2005 and 2019–2020, it is found that the gender inequality (against women) in employment opportunity is not only prevalent in the rural non-farm labour market but also on the rise during the last one and a half decades. The perceived difference in human capabilities between women and men and the non-availability of enough job opportunities could be a major driver of this inequality, apart from the existing social stigma in hiring the women in the rural labour market. This is reflected by the rise in the mean wage difference between two genders during 2004–2005 and 2019–2020. Both the mean and the quantile decomposition results suggest that a higher percentage of gender wage differentials is due to endowment components or labour productivity differences. Because of the existence of the ‘sticky floor’ phenomenon, the wage disparity is relatively larger at the bottom end of the earning distribution. But it reduces when we stride towards higher quintiles on the wage distribution. Hence, it is argued that policies aimed at enhancing the skill endowment of rural women can substantially reduce both the non-farm sector gender wage gap and the inequality in access to non-farm employment.

<p>The Multifaceted Dimensions of the Wage Gap in Ecuador</p>

This study examines the determinants of wage gap differences based on gender, ethnicity, and area of residence (urban vs. rural) in Ecuador for the years 2007 and 2017. By combining the Oaxaca-Blinder decomposition with unconditional quantile regression, we identify the extent to which the wage gap between two groups is due to characteristics (endowment) or unexplained factors at various points of the distribution, i.e. for low-, medium- and high-income workers. Results show that, on average, the gender and ethnic wage gap in 2017 increased slightly with respect to 2007, while the area wage gaps remained stable. However, progresses have mainly benefited those at the top of the income distribution, while disparities have widened for those at the bottom. As regards endowment effects, education mainly explains area and ethnicity wage gaps, while there is an important unexplained part that contributes more to gender wage differentials.

Gender wage and productivity gaps in the Ethiopian manufacturing sector

ABSTRACT The paper uses firm-level data to examine gender wage and productivity gaps in the Ethiopian manufacturing sector for the period 1996–2010. It investigates gender wage differentials between skilled and unskilled workers after controlling for factors affecting average wages. Our findings show significant gender wage and productivity gaps and the segregation of female workers into low-paying firms. Controlling for average productivity reduces the magnitude of the wage gap but does not eliminate it. However, results using a simultaneaous estimation of wage equation and production function at a firm-level indicate no significant difference between the gender wage and productivity gaps. As such, further investigation into the sources of the dual gaps using matched employer-employee data is necessary. The Ethiopian government should focus on skill development to improve the productivity of female workers and address the segregation of female workers into low-paying firms.

Retirement policy, employment status, and gender pay gap in urban China

China’s current retirement policy has been in effect since 1978. The legal retirement age is 50 years for female workers, 55 years for female cadres, and 60 years for male cadres and workers; women can retire 5 or 10 years earlier than men. This difference in legal retirement age may affect wage growth in those approaching retirement. Based on China’s Urban Household Survey data set, this study investigated the influence of retirement age differences on the gender pay gap. From age 30 to 49 years, the wage difference between female workers and cadres increased by approximately 15 % more than that of men. After consideration of possible endogeneity problems and demonstration of the robustness of the regression results, the study determined that such differences were likely caused by gender and identity differences at retirement age. Among workers and cadres, the retirement age policy exacerbated gender differences in wages through working hours, wage rate, career promotion, and job change activity in those approaching retirement.

Sticky Floors and Occupational Segregation: Evidence from Pakistan

Ever since the pioneering work on human capital modeling by Becker (1964) and Mincer (1974), estimation of earning potential and wage differentials in terms of differences in human capital endowments has been a favourite topic of research throughout the world. The empirical evidence has established, may be beyond doubt, that low returns are usually associated with low-level of human capital possessed by economic agents. Using appropriate controls for innate abilities, education, experience and training as primary determinants of human capital, the residual differential in wages among differentiated groups (on the basis of gender, race, and region) has often been characterised as discrimination [Blinder (1973) and Oaxaca (1973)]. The empirical estimation made further advances when the issue of sample selection bias was also settled by Heckman (1980). More recently the focus of research has shifted from differentials measured at the conditional mean (average) value to measurement at different points of wage distribution to test the ‘glass ceiling and sticky floor’ hypothesis.1 Some of the studies where quantile regression approach of Koenker and Bassett (1978) and Buchinsky (1998) has been adopted include Bjorklund and Vroman (2001), Dolado and Llorens (2004), and Albrecht, Vuuren, and Vroman (2004). On the basis of this research, the glass ceiling hypothesis has received fair amount of empirical support in much of the developed world. On the other hand, the sticky floor hypothesis has only been observed in some of the countries located in the southern Europe. The focus of present study is on Pakistan with three main objectives. First, to investigate if analysis at the conditional mean is sufficient to explain wage differential or an extensive work covering different points of wage distribution is required to have proper insight to the issue. This would, in turn, enable us to determine which of the two hypotheses, i.e., the glass ceiling or the sticky floor, is prevalent in the country? For this purpose, gender wage differentials at different quantiles, i.e., 10th, 25th, median,

Task interdependence and the gender wage gap: The role of the gender composition of an occupation

AbstractPeople increasingly need to collaborate with others in their workplace to perform their jobs. Studies have shown that task interdependence can have important consequences for teams and organizations, and emerging research suggests that it may be contributing to gender inequality. In this paper, we expand upon this literature to propose a relationship between interdependence and the gender wage gap. Relying on the lack‐of‐fit model, we predicted that the relationship between interdependence and the gender wage gap would vary with the gender composition of the occupation. This prediction was evaluated using multi‐source panel data from a US sample of approximately 8000 individuals. We found that higher levels of interdependence were positively associated with gender differences in wages among people working in male‐dominated occupations but negatively associated with gender differences in wages among those working in female‐dominated occupations. Supplemental analyses using individual fixed effects, an expanded sample, and alternative job characteristics provide support for our arguments. Taken together, our theory and findings offer novel insight into the consequences of rising interdependence for individuals and their career outcomes.

Is there a gender wage differential even among the most highly educated?

Even though gender wage discrimination is an extensively discussed topic, many questions remain unanswered, especially concerning the most highly skilled worker groups. This study estimates the gender wage differential of the most highly educated workers - PhD holders - in the United States. The findings suggest a gender wage gap of 17% and 21%, respectively, in 2013 and 2019. The wage differential was decomposed into observed and unobserved portions using the Oaxaca-Blinder decomposition method. The unobserved gender wage differential was 5% and 12%, respectively, in 2013 and 2019. The unexplainable portion of the wage gap was higher in the business/industry sector compared to the academic sector. Among the observed characteristics, less experience appeared to be a major factor for lower wages among women. Further, the results suggest that even highly educated women earned less than their male counterparts, partly due to occupational segregation – job category, employment category, and the field of study contributed to more than 40% of the observed wage gap in the business/industry sector.

성과급제와 성별 임금 격차

본 연구는 성과급제가 성별 임금 격차에 어떠한 영향을 미쳤는지 살펴보기 위해 한국노동패널조사 1~23차 자료를 이용하여 성과급 일자리 종사 확률의 성별 격차 및 성과급 임금 프리미엄의 성별 격차를 추정하였다. 추정한 결과에 따르면 여성 근로자가 남성 근로자에 비해 성과급 일자리에 종사할 확률은 약 2.9~3.3%p 더 낮았고, 남성과 여성 모두 성과급 임금 프리미엄이 양(+)의 값으로 추정되었으나 남성의 성과급 임금 프리미엄이 여성의 프리미엄에 비해 약 2.3~4.2% 더 높았다. 이러한 결과는 성과급제가 성별 임금 격차의 상승과 관련되어 있음을 의미한다. 요인분해 결과에 따르면 성별 임금 격차에 대한 성과급제의 설명력은 약 0.94~1.56%인 것으로 추정되었는데 이러한 추정치는 비교 가능한 영국(4.6%)과 미국의 추정치(2.4~12.1%)에 비해 다소 작게 추정된 결과이다.

When Pay Equity Policy Is not Enough: Persistence of the Gender Wage Gap Among Health, Education, and STEM Professionals in Canada, 2006‒2016

This study examines gender, geographic, and earnings inequalities within and across 13 health, education, and STEM (science, technology, engineering, and mathematics and computer science) professions in Canada. Data from the 2006 and 2016 population censuses were pooled and linked to a continuous geospatial remoteness index for assessing trends in occupational feminization and associated employment earnings among degree-holding professionals aged 25–54. Linear regression and Oaxaca-Blinder decomposition methods were used to analyze how personal, professional, and socioenvironmental factors may attenuate or magnify wage differentials by sex. Results show the STEM professions tended to remain male-dominated, heavily urbanized, and subject to significantly lower earnings for women compared to men. Other historically female-dominated professions, notably nursing professionals and secondary school teachers, were characterized with geographic distributions most closely approaching the general population, relatively narrower gender wage gaps, but also lower average annual earnings. A significant gender wage differential was found in each profession, with women earning 4.6‒12.5% less than men, after adjusting for traditional human capital measures, social characteristics intersecting with gender, and community remoteness and accessibility. Residential remoteness and census period generally explained little of the gender wage gap. Despite decades of pay equity policies in Canada, women’s earnings averaged 2.3‒7.9% less than men’s due to unexplained factors, a finding which may be attributed, at least in part, to persistent (unmeasured) gender discrimination even in highly educated professions.

How the Coronavirus Pandemic has Affected Gender Wage Inequality in Colombia

This article aims to compare how gender wage differences among Colombian workers have changed before and during the coronavirus pandemic. The parametric breakdown of Oaxaca-Blinder is performed based on microdata from the 2020 Large Integrated Household Survey and compared with the 2019 results. Among the results, the differential in hourly labor income against women has increased to 16% in 2020 versus 4% in 2019, especially in the lower part of the distribution. For both years and all income levels, most of the contribution to the gap is due to the unexplained part associated with discrimination. However, this effect is counterbalanced by women’s contributions, which are highly concentrated in the upper-income brackets.

Civil rights experiments versus enrichment experiments in wage gap analysis

ABSTRACT The choice of the non-discriminatory vector of returns in Oaxaca-Blinder wage gap decompositions affects the results. Rather than being arbitrary, that choice should depend on the nature of the intended policy to address wage differentials in the labour market. The effectiveness of policies at the extensive margin, such as those offering greater access to higher education, is better estimated by the explained part of the wage gap, when choosing the lower-wage group’s vector of returns as non-discriminatory (the ‘enrichment experiment’). Alternatively, the effectiveness of affirmative action policies is better estimated by the unexplained part of the wage gap, when choosing the higher-wage group’s vector of returns as non-discriminatory (the ‘civil rights experiment’). We provide an example of applying this methodology for ethnic and gender wage differentials in the Georgian labour market.