We consider and attempt to understand the gender wage gap across 26 European countries, using 2007 data from the European Union Statistics on Income and Living Conditions.# The size of the gender wage gap varies considerably across countries, definitions of the gap, and selection-correction mechanisms. Most of the gap cannot be explained by the characteristics available in this data set. Quantile regressions show that, in a number of countries, the wage gap is wider at the top ('glass ceilings') and/or at the bottom of the wage distribution ('sticky floors'). We find larger mean/median gender gaps and more evidence of glass ceilings for full-time full-year employees, suggesting more female disadvantage in 'better' jobs. These features may be related to country-specific policies that cannot be evaluated at the individualcountry level, at a point in time. We use the cross-country variation in the unexplained wage gaps of this larger-than-usual sample of states to explore the influence of (i) country policies that reconcile work and family life and (ii) their wage-setting institutions. We find that country policies and institutions are related to features of their unexplained gender wage gaps in systematic, quantitatively important, ways. JEL Classification: J16, J31, J50, C21
This paper studies the determinants of real wage rates using data on Canadian labour contracts signed between 1978 and 1984. Its results are consistent with Dunlop's neglected (1944) hypothesis that real pay movements are shaped by product price changes (contrary to the predictions of implicit contract theory and other models of wage inflexibility). The level of the unemployment rate is found to lower the real wage level with an elasticity between-0.04 and-0.13, whereas a Phillips Curve specification which relates wage changes to the level of the unemployment rate is not convincingly supported by the data. These results may be seen as consistent with the view that collective bargaining is a form of rent-sharing in which external unemployment weakens workers' bargaining strength.
We estimate the public-private sector pay gap for 27 European countries, using the 2008 EU SILC. The coefficients of conditional (on personal and job characteristics) public sector controls give a first impression on wage differences, while decompositions into explained and unexplained components (also accounting for selectivity) allow for a more complete analysis, which helps to identify possible causes of the gap. Regional patterns exist. Separate subsample decompositions based on age, education, gender and occupation, provide interesting insight regarding the pay structure of each country. Quantile decomposition analyses show that the public-private pay gap is, generally, negatively related to income quantiles. JEL classification: J31, J45, J48
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