Distributional Changes in the Gender Wage Gap

Posted: 17 Apr 2014

See all articles by Sonja C. de New (née Kassenboehmer)

Sonja C. de New (née Kassenboehmer)

Monash University - Centre for Health Economics

Mathias Sinning

Australian National University (ANU) - Crawford School of Public Policy

Date Written: April 1, 2014

Abstract

Using Panel Study of Income Dynamics (PSID) data, the authors analyze changes in wage differentials between white men and women over time and across the entire wage distribution. The authors decompose distributional changes in the gender wage gap to assess the contribution of observed characteristics measuring individual productivity. They find that the gender wage gap narrowed by 16% at the lowest decile and by less than 5% at the highest decile. The decomposition results indicate that changes in the gender wage gap are mainly attributable to changes in educational attainment at the top of the wage distribution, with a sizable part due to work history changes at the bottom. The findings further reveal that the accuracy of the results depends on the direction in which the decompositions are performed.

Keywords: gender wage gap, decomposition analysis, unconditional quantile regression

JEL Classification: J16

Suggested Citation

de New, Sonja C. and Sinning, Mathias, Distributional Changes in the Gender Wage Gap (April 1, 2014). Industrial and Labor Relations Review, Vol. 67, No. 2, 2014, Available at SSRN: https://ssrn.com/abstract=2425724

Sonja C. De New (Contact Author)

Monash University - Centre for Health Economics ( email )

Building 75, 15 Innovation Walk
Monash University
Clayton, Victoria 3800
Australia

Mathias Sinning

Australian National University (ANU) - Crawford School of Public Policy ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

HOME PAGE: http://www.mathiassinning.com

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