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Mind the Gender Wage Gap – the Impact of Trade and Competition on Sectoral Wage Difference

Abstract

This article examines differences between women’s and men’s wages in 18 selected OECD countries in the period 1970-2005. The study is based on 12 manufacturing sector- and skill-specific sets of panel data on the gender wage gap. We apply a system GMM estimator to the extended version of the conditional gender wage gap convergence equation, controlling for sector concentration and industry-specific measures of openness using a difference-in-difference approach: trade-affected concentrated sectors versus trade-affected competitive sectors. The results indicate that (a) an increase in sector concentration is associated with wage gap growth; (b) both import and export penetration are associated with a reduction of the high-skill gender wage gap growth in concentrated industries; (c) there is evidence of a widening impact of trade on the medium and low-skill occupational gender wage gap growth in less competitive industries; (d) institutional regulations of the labour market have an impact on the development of the gender wage gap: for highly-skilled labour an increase in labour market regulation raises the growth of the gender wage gap, while for medium- and low-skilled workers, it lowers it.

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Category:
Articles
Type:
artykuł w czasopiśmie wyróżnionym w JCR
Published in:
WORLD ECONOMY no. 36, edition 4, pages 437 - 464,
ISSN: 0378-5920
Language:
English
Publication year:
2013
Bibliographic description:
Wolszczak-Derlacz J.: Mind the Gender Wage Gap – the Impact of Trade and Competition on Sectoral Wage Difference// WORLD ECONOMY. -Vol. 36, iss. 4 (2013), s.437-464
Verified by:
Gdańsk University of Technology

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