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Gender, Inequality, and Wages$
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Francine D. Blau, Anne C. Gielen, and Klaus F. Zimmermann

Print publication date: 2012

Print ISBN-13: 9780199665853

Published to Oxford Scholarship Online: January 2013

DOI: 10.1093/acprof:oso/9780199665853.001.0001

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Understanding International Differences in the Gender Pay Gap

Understanding International Differences in the Gender Pay Gap

Chapter:
(p.177) 4 Understanding International Differences in the Gender Pay Gap
Source:
Gender, Inequality, and Wages
Author(s):

Lawrence M. Kahn

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199665853.003.0007

Using microdata for twenty-two countries over the 1985–94 period, this chapter shows that more compressed male wage structures and lower female net supply are both associated with a lower gender pay gap, with an especially large effect for wage structures. Reduced-form specifications indicate that the extent of collective bargaining coverage is also significantly negatively related to the gender pay gap. Together, the wage compression and collective bargaining results suggest that the high wage floors that are associated with highly centralized, unionized wage setting raise women's relative pay, since women are at the bottom of the wage distribution in each country.

Keywords:   gender pay gap, wage differentials, wage inequality, labour market institutions

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