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Wage differentials due to gender.

N Smith, N Westergard-nielsen

    Journal of Population Economics
    |October 1, 1988
    PubMed
    Summary
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    Men still earn more than women due to higher returns on characteristics, despite women's wage increases. Female workers often receive no return on experience, impacting gender pay gap dynamics.

    Area of Science:

    • Economics
    • Sociology
    • Labor Market Studies

    Background:

    • Observed wage differentials between genders are a persistent issue in labor economics.
    • Macro statistics indicate rising wage rates for women, but underlying causes require deeper analysis.
    • Human capital theory provides a framework for understanding wage determinants.

    Purpose of the Study:

    • To analyze gender wage differentials using a longitudinal dataset of Danish wage earners.
    • To isolate the impact of experience, schooling, and unemployment on wages for men and women.
    • To determine the return on characteristics for each gender and identify key drivers of the wage gap.

    Main Methods:

    • Utilized a longitudinal dataset covering 5% of Danish wage earners over a 9-year period.
    Keywords:
    Demographic FactorsDenmarkDeveloped CountriesEconomic FactorsEducational StatusEmploymentEstimation TechnicsEuropeInequalitiesMacroeconomic FactorsModels, TheoreticalNorthern EuropePopulationPopulation CharacteristicsResearch MethodologyScandinaviaSex FactorsSocioeconomic FactorsSocioeconomic StatusUnemploymentWagesWomen's Status

    Related Experiment Videos

  • Applied a human capital model to analyze wage determinants.
  • Controlled for factors including experience, schooling, and unemployment spells.

    • Main Results:

    • Women's wage increases are primarily driven by improvements in background characteristics, not higher returns.
    • Men receive a higher return on their characteristics compared to women.
    • Female workers generally do not receive returns on experience, and unemployment negatively impacts wages for both genders.

    Conclusions:

    • The gender wage gap persists due to differential returns on characteristics and experience.
    • Policy interventions should focus on ensuring equal returns for experience and mitigating the wage penalty of unemployment.
    • Further research into the societal and structural factors contributing to these differentials is warranted.