Educational segregation and the gender wage gap in Greece

Abstract

PurposeTo investigate the extent to which differences in the subject of degree studied by male and female university graduates contributes to the gender pay gap in Greece, an EU country with historically large gender discrepancies in earnings and occupational segregation. In addition, to explore the reasons underlying the distinct educational choices of men and women, with particular emphasis on the role of wage uncertainty. Design/methodology/approachUsing micro-data from the Greek Labour Force Survey (LFS), Oaxaca-Blinder decompositions are employed to detect the extent to which gender differences in the type of degree studied can explain the male-female pay gap. "Risk-augmented earnings functions" are also used to examine the differential wage premiums offered to men and women in Greece in response to the uncertainty associated with different fields of study. FindingsIt is found that the subjects in which women are relatively over-represented (e.g. Education, Humanities) are also those with the lowest wage returns. Gender differences in the type of degree studied can therefore explain an additional 8.4% of the male-female pay gap in Greece. A potential reason for distinct gender educational choices is that women opt for less uncertain educations that consequently command lower wage premiums in the job market. Practical ImplicationsThe findings suggest that the promotion of gender equality in Greece should pay closer attention to removing informal barriers to entry for women in educational fields traditionally chosen by men (e.g. more effective careers advice, work-experience placements, matching of young girls with professional "mentors").

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