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John S. Heywood and Nikolaos Theodoropoulos
''The declining influence of workplace differences on the gender wage gap''
( 2020, Vol. 40 No.2 )
Current policy aims at reducing the gender wage gap within firms yet historically much of the gap is generated by differences between workplaces. We use three waves of British matched employer-employee data to show that the current policy is increasingly relevant as the role of inter-workplaces differences has monotonically declined. Such differences contribute 72 percent of the explained gap in 1998 but only 43 percent in 2011. The size of the inter-establishment differences moves from larger than the residual within the firm unexplained gap to substantially smaller.
Keywords: Gender Wage Gap; Workplace Effects; Gelbach Decomposition
JEL: J7 - Labor Discrimination: General
J3 - Wages, Compensation, and Labor Costs: General
Manuscript Received : Dec 03 2019 Manuscript Accepted : May 06 2020

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