Paternity Leave and the Motherhood Penalty: New Causal Evidence

Objective: The objective of this study was to test how a father's paternity leave affects the within‐household gender wage gap among heterosexual couples. Background: Previous studies focus on the actual number of days of leave the father takes, but if an important driver of the gender wage gap is the effect of parental leave on gender‐specific household specialization, absolute variations in the father's leave should not be the key interest. Instead, this article tests the effect of the extent of the father's leave relative to that of the mother's leave because it is this variation that plausibly affects the division of household labor and through this the within‐household gender wage gap. Method: Full sample, administrative data are from Statistics Denmark. Causal inference was facilitated by exploiting 5 Danish parental leave reforms on 5 separate samples of all households who become first‐time parents within the year before and after each reform (N₁ = 2,304; N₂ = 45,683; N₃ = 16,668; N₄ = 42,328; N₅ = 38,978). Results: Father's leave reduces the within‐household gender wage gap through increasing mother's wages. Father's leave furthermore causes an increase in total household wage incomes. Conclusion: Father's stronger involvement in the household may be one route to more gender equality, but more so to increased financial well‐being among families.     

Public–private wage differential and gender gap in Latin America: Spoiled bureaucrats and exploited women?

This paper uses a rich collection of household surveys to investigate the wage differential between the public and private sectors in 13 Latin American countries. It also studies how the sector of employment affects the gender wage gap. Contrary to what is commonly thought, it is found that, in the majority of Latin American countries, there is a premium associated with working in the public sector. It is also found that the premium is often higher for women than for men but that this difference does not compensate for the wide gender gap.     

Influence of female managers on gender wage gap and returns to cognitive and non‐cognitive skills

There is a modest but growing empirical body of evidence on the influence of managers' gender on the wages of their male and female subordinates. Most of these studies, however, suffer from a very raw approximation of the managers' gender by the share of women in charge, and often lack many important gender‐specific personal characteristics, such as non‐cognitive skills and life–work preferences, which can lead to biased results. This article copes with the mentioned deficiencies by employing a very rich and representative dataset of 1948 employees from the Czech Republic. It reveals surprising results as it shows that the gender of the manager has an effect on the level of wages, but not on the gender wage gap. It also shows that the gender of the manager and his/her subordinate has only a weak impact on the remuneration of an employee´s non‐cognitive skills and life–work preferences.     

Two Components of Wage Gaps Induced by Individual-level Variables: Intra-firm or Inter-firm?

Individual-level variables such as gender, education, occupation, and employment type are well-known factors that induce wage gaps in the labor market. This article aims to divide wage gaps into two components—those arising within each firm (the intra-firm wage gap) and those arising between different firms (the inter-firm wage gap)—and measure their respective proportions by individual-level variables, as studies suggest that each wage gap based on an individual-level variable has a unique mix of an intra-firm and inter-firm wage gap. This measurement can help enrich investigation into the generative process of wage gaps and formulate effective labor policies to reduce them. Accordingly, we compared the coefficients of the independent variables of the wage function estimated by a pooled ordinary least squares model and a fixed-effect model, using nationwide employer–employee matching data collected by the Japanese government. We found that wage gaps by gender and employment type mostly consist of intra-firm wage gaps, and those by education and occupation have a larger share of inter-firm wage gaps. The findings suggest that different research strategies are required to investigate the generative process of each wage gap, and that regulations on and interventions in organizational processes are important to reduce wage gaps based on gender and employment type.     

Variations of the same? A sectoral analysis of the gender pay gap in Germany and Austria

Germany and Austria are two countries with a comparably and persistently high gender pay gap. Further, both countries are classified as conservative welfare states where the male breadwinner model has been only partly modernized and strong corporatist structures shape working conditions. At the same time, welfare policy and provision are not only based on but also shape gender‐related norms, beliefs and assumptions that are virulent for job valuation and collective bargaining. Against this background the article analyses similarities and differences regarding the gender pay gap in Germany and Austria. While both countries show significant similarities regarding the causes for the gender pay gap, there are some differences regarding legislation and further policies with which the gender pay gap could be reduced. Arguing that the institutional framework strongly influences income opportunities for women and men, the article provides a sectoral analysis of the financial and insurance sector and the human health sector in both countries. Using qualitative data from a recent research project, it is argued that in the classification of a sector as ‘female’, the sectoral income level combined with different wage‐setting mechanisms have a crucial impact on wage inequalities between women and men.     

Stagnation only on the surface? The implications of skill and family responsibilities for the gender wage gap in Sweden, 1974–2010

The wage differential between women and men persists in advanced economies despite the inflow of women into qualified occupations in recent years. Using five waves of the Swedish Level‐of‐Living Survey (LNU), this paper explores the gender wage gap in Sweden during the 1974–2010 period overall and by skill level. The empirical analyses showed that the general gender wage gap has been nearly unchanged for the past 30 years. However, the gender difference in wage in less qualified occupations fell considerably, whereas the gender pay gap remained stable for men and women in qualified occupations. The larger significance of family responsibilities for wages in qualified occupations is one likely explanation for this result.     

Economic growth and inequality in Singapore: The case for a minimum wage

In the context of Singapore's ageing population, the employment of large numbers of low‐skilled foreign workers is proving to be a major challenge to inclusive growth because of the stagnation of low‐wage workers' incomes. In order to address this problem, the author makes the case for introducing a minimum wage to complement existing in‐work benefit schemes. After addressing the commonly voiced objections to a minimum wage system, he suggests ways in which a minimum wage could be implemented in Singapore. New measures to enhance the social safety net and foster more sustainable economic growth are also proposed.     

Dynamics of Domestic Labor Across Short‐ and Long‐Distance Family Relocations

Family relocations within developed countries are argued to have gendered consequences for paid employment, with men's careers improving and women's careers deteriorating. However, little is known about their potential relationships with outcomes in other life domains, including partnered men's and women's relative shares of domestic labor. The authors addressed this gap in knowledge by theorizing and examining how within‐couple gender gaps in domestic work evolve across short‐ and long‐distance family relocations over the life course, paying attention to the over‐time dynamics before and after event occurrence. To accomplish this, they used 12 years of panel data from the Household, Income and Labour Dynamics in Australia Survey and panel regression models. The results indicated that family relocations widen the within‐couple gender gap in weekly housework hours, largely because of shifts in women's employment situation and fertility episodes that accompany residential relocations.     

More or Less Unequal? Evidence on the Pay of Men and Women from the British Birth Cohort Studies

Gender pay differences are not merely a problem for women returning to work and part‐time employees, but also for those in full‐time, continuous careers. In data from cohort studies, the gender wage gap for full‐time workers in their early thirties fell between 1978 and 2000. This equalization reflects improvements in women’s education and experience rather more than a move towards equal treatment. Indeed, had the typical woman full‐timer in 2000 been paid at men’s rates she would have actually received higher pay than the typical man. Within one cohort, passing from age 33 to 42, gender inequality increased. This was partly due to differences in the qualifications and experience of the women in employment at those points, but unequal treatment also rose among women employed full time at both ages.     

Do values explain the low employment levels of Muslim women around the world? A within‐ and between‐country analysis

Using worldwide data from the World Values Survey (WVS) gathered in 2010–2014, we examine two distinct ways in which Islam may be associated with women's employment. We show that, within their countries, Muslim women are less likely to be employed than women of other religions. We also examine between‐country differences and find that, net of education and family statuses, the employment levels of women living in countries that are 90–100 per cent Muslim are not significantly different than those living in countries that are only 0–20 per cent Muslim. Then we test a prevailing view: that Islam discourages gender egalitarian values, and that these values – held by women themselves or people around them – explain why Muslim women are less likely to be employed than women of other religions within their own countries. Despite the rich measures of values in the WVS and a large sample, we find no evidence that values explain any of the lower employment of Muslim women, mainly because values have little or no effect on women's employment. Thus, we conclude that most of the world's gap in employment between Muslim women and other women is within‐country and is not explained by gender ideology. Future research should examine alternative hypotheses, including ethno‐religious discrimination.     

COVID‐19 and raising the value of care

In this opinion piece, we argue the current pandemic is shining a light on caregiving as critical work that is under‐valued and under‐paid. We call upon national lawmakers to raise the value of care work. Doing so would also make progress in solving another national crisis: closing the gender wage gap. We explore how the gender wage gap is driven primarily by the fact that men and women sort into different work, with women being over‐represented in work where they care for others and in work that allows them to care for their families.     

The gender gap in teenagers’ incomes. A 30-year trend in Finland 1983–2013

In this article, we examine the gender differences in disposable incomes of teenagers during a 30-year period 1983–2013, using large nationally representative survey data. Since the gender pay gap in working life has been rather persistent in Finland and the EU, it was necessary to see whether the gap persists in teenagers’ incomes as well. Although teenagers do not receive much income from work, they adapt to the structures of society during their teenage years and learn gender roles in consumption, education, and working life. Our results reveal that the gender pay gap has been rather persistent in Finland, particularly among 14- and 16-year-old teenagers. It is only among 18-year-olds that the gender difference in income has narrowed. There were interactions between gender and socio-economic indicators such as the father's education and family's place of residence. The persistent gender pay gap cannot be explained solely by wage differences in any age group, because full-time work of teenagers is nowadays very rare, and in Finland they do not work very much even part-time. Although it is rather obvious that boys get higher incomes than girls from external work, the allocation of money by parents seems to be unequal, too.     

Fixing minimum wage levels in developing countries: Common failures and remedies

Some developing countries have set their minimum wages too high or too low to constitute a meaningful constraint on employers. The article compares minimum wages worldwide, proposes several ways of measuring them in developing countries and discusses whether they are effective thresholds in those countries. The second part of the article considers the institutional factors leading countries to set minimum wages at extreme levels. The author concludes that the minimum wage is used as a policy instrument to several ends – wage negotiation, deflation and social dialogue – which results in the absence of a wage floor, weak collective bargaining, or non‐compliance.     

The Gender Wage Gap in Belarus

A new release of the Belarusian Household Survey on Incomes and Expenditures provides the unique opportunity for an in-depth study of the gender pay gap in Belarus. The econometric analysis involves estimates of augmented earnings equations, also corrected for sample selection bias, as well as for least absolute deviations estimates at different quantiles of the wage distribution. The results suggest that the gender wage gap is smaller than in other countries of the Commonwealth of Independent States and Central and Eastern European countries, as one would expect considering the slow transition process, and is reduced after controlling for unobservable characteristics. Moreover, the gap increases as one moves from the 10th to the 90th quantile. This means that having jobs providing generally higher levels of wages for a woman, it is more and more difficult to get the same wage as that of a man.     

Joan Acker and Doing Comparable Worth

Joan Acker's seminal book Doing Comparable Worth, based on her first‐hand experience of implementing comparable worth for Oregon state employees, constitutes a major contribution to understanding the obstacles to achieving the goal of equal pay and is a precursor of her inequalities regimes work. For Acker the foundering of the comparable worth exercise on the rocks of management's opportunistic strategy to marginalize trade unions provided a direct experience of how gender and class inequalities are simultaneously produced and reproduced. Consequently, wage setting is always political and change to wages generates widespread resistance above and beyond issues of gender inequalities. While the feminist activists may be rightly criticized for naivety in their belief in a technical solution to gender pay inequalities, their robust critiques of pay practices is sorely missing in today's renewed acceptance of a gender‐neutral labour market, and more limited feminist interest in theories of pay.     

Unions and unequal pay: The establishment of the “family wage”

Equal pay laws in many OECD countries establish the right of men and women to equal pay for work of equal value. Nevertheless, during the first half of the 20th century, before the enactment of equal pay laws, employers and unions in several countries promoted unequal pay through “family wage” arrangements. This article seeks to improve understanding of the historical and sociological origins of “family wage” arrangements through both comparative research and in‐depth historical archival research on family wage arrangements in Israel. It shows that unions played a complex role in promoting family wage arrangements. While their action refected their patriarchal understanding of society, they were also guided by socialist principles.     

REDUCING PUBLIC‐PRIVATE SECTOR PAY DIFFERENTIALS: THE SINGLE SPINE PAY POLICY AS A NATURAL EXPERIMENT IN GHANA

Empirical studies have documented the existence of the public‐private pay differentials in both developed and developing countries. The implementation of policies aiming to reduce this gap has however been mitigated or inconclusive. This paper exploits the Single Spine Pay Policy (SSPP) in Ghana as a natural experiment to examine the effectiveness of wage policies in developing countries. The SSPP was implemented in 2010 by the Government of Ghana to address the public‐private sector wage gap and improve productivity in the public sector. Using a quantile treatment effect approach based on a difference‐in‐difference estimation, we show that the SSPP has yet to reduce the wage gap between the public and private sectors across the entire distribution of earnings in Ghana. The improvement observed is only at the lower tail of the distribution of earnings. However, the SSPP has a larger effect on the earnings of female workers than that of males in the education and health services sectors while male workers have benefited more in the administration sector, suggesting that the policy was successful in reducing the gender wage gap in the education and health services sectors but has widened this gap in the administration sector. Moreover, the SSPP has decreased the productivity of workers across the distribution of earnings, mainly due to a decrease in the effort of female public sector workers in the education and health sectors and male workers in the administration sector. (JEL C31, G15, J24, J31, J45)     

BB see: Transparency legislation and public discussions of wage inequality

Disparities in compensation persist between men and women. Wage transparency, which enables workers to compare their compensation to what others receive in their organization, can be an important tool for redressing specific intra‐firm disparities tied to discriminatory processes. Drawing on newspaper reports about gender pay differentials, we provide the first analysis of whether a public disclosure of pay transparency corresponds to a shift in broader public discourse, as represented by news coverage. Thematic analysis of newspaper coverage of the gender pay gap in Britain before and after the high‐profile release of BBC wage data in 2017 reveals a shift from choice‐based explanations to those emphasizing structural inequality and discrimination. The findings suggest that wage transparency coupled with news media attention may not only identify inequitable pay in firms, but also work more broadly to create space to discuss discriminatory practices and redress for pay disparities.     

Wage Inequality and Performance in Nonprofit and For‐Profit Organizations

This article examines the effects of several forms of wage inequality on service quality and employee effort. We suggest that two popular theories, tournament and fair wage/equity, are not necessarily competing. Each theory accurately describes aspects of employee behavior, but because of sectoral differences in organizational objectives and employee attitudes, tournament theory's predictions are relatively stronger in the for‐profit sector, while fair wage/equity theory's predictions are relatively stronger in the nonprofit sector. Using an employer–employee matched data set of nursing homes linked to a federal regulatory database and a resident survey, we found that ownership moderates the relationship between wage inequality and service quality. Although wage inequality positively affects service quality in the for‐profit sector, the reverse is true among nonprofit organizations. We also found that overall wage inequality in the workplace has a more pronounced influence on employee discretionary effort than does the employee's place in the distribution of wages.