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2005•RePEc: Research Papers in EconomicsRequires access

The Gender Wage Gap and Sex Segregation in Finland

Ossi Korkeamäki, Tomi Kyyrä

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Abstract

We investigate how segregation of women and men into certain occupations, industries, firms and jobs within firms is reflected in the gender wage gap in the Finnish manufacturing sector. Using a matched employer-employee data we evaluate wage differentials between men and women in similar occupation with the same employer. This allows us to separate the effects of labour market segregation and differences in human capital and estimate the unexplained within-job wage gap. We find that at least half of the gender wage gap arises from labour market segregation while human capital differences by sex account for less than 10 per cent.

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What this paper is about

We investigate how segregation of women and men into certain occupations, industries, firms and jobs within firms is reflected in the gender wage gap in the Finnish manufacturing sector. Using a matched employer-employee data we evaluate wage differentials between men and women in similar occupation with the same employer. This allows us to separate the effects of labour market segregation and differences in human capital and estimate the unexplained within-job wage gap. We find that at least half of the gender wage gap arises from labour market segregation while human capital differences by sex account for less than 10 per cent.

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Available abstract

We investigate how segregation of women and men into certain occupations, industries, firms and jobs within firms is reflected in the gender wage gap in the Finnish manufacturing sector. Using a matched employer-employee data we evaluate wage differentials between men and women in similar occupation with the same employer. This allows us to separate the effects of labour market segregation and differences in human capital and estimate the unexplained within-job wage gap. We find that at least half of the gender wage gap arises from labour market segregation while human capital differences by sex account for less than 10 per cent.

Key concepts: Wage, Human capital, Labour economics, Economics, Occupational segregation, Gender gap, Gender pay gap, Sex segregation

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