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Inter-industry wage differentials and the gender wage gap in Belgium

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  • Ilan Tojerow
  • François Rycx

Abstract

This paper simultaneously analyses the gender wage gap and the inter-industry wage differentials in the Belgian private sector. On the basis of the 1995 Structure of Earning Survey, we estimate the inter-industry wage differentials by gender and the gender wage gap by industry. We find significant interindustry wage differentials for men and women, even when controlling for a large number of productivity-related factors. These differentials are highly correlated but significantly different. An Oaxaca (1973) and Blinder (1973) decomposition, realised at the Nace three-digit level, shows that around one-tenth of the overall gender wage gap (on average women earn 22% less than men) is due to industry effects.

Suggested Citation

  • Ilan Tojerow & François Rycx, 2002. "Inter-industry wage differentials and the gender wage gap in Belgium," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 45(2), pages 119-141.
    • Handle: RePEc:bxr:bxrceb:y:2002:v:45:i:2:p:119-141
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    References listed on IDEAS

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    1. Maria Jepsen, 2001. "Evaluation des différentiels salariaux en Belgique: hommes-femmes et temps partiel-temps plein," ULB Institutional Repository 2013/8583, ULB -- Universite Libre de Bruxelles.
    2. Robert Gibbons & Lawrence Katz, 1992. "Does Unmeasured Ability Explain Inter-Industry Wage Differentials?," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(3), pages 515-535.
    3. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-293, March.
    4. Ilan Tojerow, 2008. "Inter-industry Wage Differentials, Rent Sharing and Gender in Belgium," ULB Institutional Repository 2013/8789, ULB -- Universite Libre de Bruxelles.
    5. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    6. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
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    Citations

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    Cited by:

    1. Danièle Meulders & Robert Plasman & François Rycx, 2005. "Les inégalités salariales de genre : expliquer l'injustifiable ou justifier l'inexplicable," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(2), pages 95-107.
    2. Myeong-Su Yun & Eric S. Lin, 2015. "Alternative Estimator for Industrial Gender Wage Gaps: A Normalized Regression Approach," Pacific Economic Review, Wiley Blackwell, vol. 20(4), pages 569-587, October.
    3. Nicola Gagliardi & Benoît Mahy & François Rycx, 2021. "Upstreamness, Wages and Gender: Equal Benefits for All?," British Journal of Industrial Relations, London School of Economics, vol. 59(1), pages 52-83, March.
    4. Plasman, Robert & Rycx, François & Tojerow, Ilan, 2006. "Industry Wage Differentials, Unobserved Ability, and Rent-Sharing: Evidence from Matched Worker-Firm Data, 1995-2002," IZA Discussion Papers 2387, Institute of Labor Economics (IZA).
    5. Ilan Tojerow, 2008. "Industry Wage Differentials Rent Sharing and Gender in Belgium," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(3), pages 55-65.
    6. Nicola Gagliardi & Benoît Mahy & François Rycx, 2018. "Upstreamness, social upgrading and gender: Equal benefits for all?," Working Paper Research 359, National Bank of Belgium.
    7. François Rycx & Ilan Tojerow, 2004. "Rent sharing and the gender wage gap in Belgium," International Journal of Manpower, Emerald Group Publishing Limited, vol. 25(3/4), pages 279-299, April.
    8. Brenda Gannon & Robert Plasman & Francois Rycx & Ilan Tojerow, 2007. "Inter-Industry Wage Differentials and the Gender Wage Gap: Evidence from European Countries," The Economic and Social Review, Economic and Social Studies, vol. 38(1), pages 135-155.
    9. Nicola Gagliardi & Benoît Mahy & François Rycx, 2019. "Does firms’ position in global value chains matter for workers’ wages?. An overview with a gender perspective," Reflets et perspectives de la vie économique, De Boeck Université, vol. 0(4), pages 55-62.
    10. Robert Plasman & François Rycx & Ilan Tojerow, 2006. "Industry wage differentials, unobserved ability, and rent-sharing: evidence from matched employer-employee, 1992-2005," DULBEA Working Papers 06-14.RS, ULB -- Universite Libre de Bruxelles.
    11. Chuang, Hwei-Lin & Lin, Eric S. & Chiu, Shih-Yung, 2018. "The gender wage gap in the financial industry: Evidence from the interindustry ranking," International Review of Economics & Finance, Elsevier, vol. 55(C), pages 246-258.
    12. Robert Plasman & François Rycx & Ilan Tojerow, 2007. "Wage differentials in Belgium: the role of worker and employer characteristics," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 50(1), pages 11-40.
    13. Lin, Eric S., 2010. "Gender wage gaps by college major in Taiwan: Empirical evidence from the 1997-2003 Manpower Utilization Survey," Economics of Education Review, Elsevier, vol. 29(1), pages 156-164, February.

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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