Where do women earn more than men? Explaining regional differences in the gender pay gap

This paper provides new evidence on the magnitude and determinants of regional differences in the gender pay gap. On the basis of a comprehensive data set of all full‐time employees in Germany, we explain the profound variation of the gender pay gap at a small‐scale level with theory‐based individua...

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Bibliographic Details
Published inJournal of regional science Vol. 61; no. 5; pp. 1065 - 1086
Main Authors Fuchs, Michaela, Rossen, Anja, Weyh, Antje, Wydra‐Somaggio, Gabriele
Format Journal Article
LanguageEnglish
Published Hoboken, NJ Wiley 01.11.2021
Blackwell Publishers Inc
Subjects
decomposition
Earnings
Employees
Gender
Gender aspects
Gender differences
Gender inequality
Gender pay gap
Germany
Income inequality
Men
Regional differences
regional labor markets
Regional variations
Sex differences
Wage differential
wages
Germany
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Summary:This paper provides new evidence on the magnitude and determinants of regional differences in the gender pay gap. On the basis of a comprehensive data set of all full‐time employees in Germany, we explain the profound variation of the gender pay gap at a small‐scale level with theory‐based individual and job‐related characteristics. Using the Oaxaca–Blinder decomposition, we find pronounced spatial differences in the impact of the considered determinants. Whereas gender differences in job‐related characteristics are important drivers in regions with a high gender pay gap, individual characteristics come into effect in regions with a low and negative gap. The results underscore the role played by the establishment composition in a region and the kind of jobs provided for gendered earnings.
ISSN:1467-9787
0022-4146
1467-9787
DOI:10.1111/jors.12532