Do Mediterraneans really do it better? Explaining the lower gender wage gap in southern European countries

Abstract

This article sets out to help provide a more detailed explanation for the narrower gender wage gap in Mediterranean countries. Two explanatory hypotheses are put forward and compared empirically using the European Union Statistics on Income and Living Conditions (EU‐SILC). The most widely accepted hypothesis is that gender wage gaps across countries are negatively correlated with gender employment gaps. The second hypothesis, however, is supported by evidence that the narrower wage gap in Mediterranean countries could be due to the differences in demand for labour in EU countries as a result ultimately of decisions by major corporations concerning the location of the activities in their value chain.