IDEAS home Printed from https://ideas.repec.org/a/eee/reveco/v55y2018icp246-258.html
   My bibliography  Save this article

The gender wage gap in the financial industry: Evidence from the interindustry ranking

Author

Listed:
  • Chuang, Hwei-Lin
  • Lin, Eric S.
  • Chiu, Shih-Yung

Abstract

This study examines the interindustry gender wage gap in Taiwan with a focus on the financial industry, using individual level data from the 1978–2013 Manpower Utilization Survey. We consider this issue from two perspectives. First, by decomposing, examining, and breaking down the overall gender wage gap, we find that 2–14% of the overall gender wage gap during this period can be attributed to workers’ industry affiliation. Second, through the analysis of the gender wage gap across industries in Taiwan, we notice that the financial industry is the most monetarily advantageous industry for women during the past 15 years based on the interindustry ranking approach. The wage level for women in the financial industry was only 3–20% below that of men, compared to 15–93% for women in the mining industry. A cross country comparison with the results from the literature suggests that the range of the interindustry gender wage gap in Taiwan is larger than that in the U.S. The financial industry is more likely to rank the highest (with a smaller gender wage gap) in Taiwan, while ranking the lowest in the U.S. labor market.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:reveco:v:55:y:2018:i:c:p:246-258
    DOI: 10.1016/j.iref.2017.07.016
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1059056017305233
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.iref.2017.07.016?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. 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.
    2. Zheng Fang & Chris Sakellariou, 2011. "A Case of Sticky Floors: Gender Wage Differentials in Thailand," Asian Economic Journal, East Asian Economic Association, vol. 25(1), pages 35-54, March.
    3. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages 76-108, Part II, .
    4. Beyza Ural & William Horrace & Jin Hwa Jung, 2009. "Inter-industry gender wage gaps by knowledge intensity: discrimination and technology in Korea," Applied Economics, Taylor & Francis Journals, vol. 41(11), pages 1437-1452.
    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. 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.
    7. Eric S. Lin, 2007. "On the standard errors of Oaxaca-type decompositions for inter-industry gender wage differentials," Economics Bulletin, AccessEcon, vol. 10(6), pages 1-11.
    8. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    9. Marianne A. Ferber & Carole A. Green, 1982. "Traditional or Reverse Sex Discrimination? A Case Study of a Large Public University," ILR Review, Cornell University, ILR School, vol. 35(4), pages 550-564, July.
    10. William C. Horrace, 2005. "On the ranking uncertainty of labor market wage gaps," Journal of Population Economics, Springer;European Society for Population Economics, vol. 18(1), pages 181-187, September.
    11. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    12. Joseph E. Zveglich Jr. & Yana van der Meulen Rodgers & William M. Rodgers III, 1997. "The Persistence of Gender Earnings Inequality in Taiwan, 1978–1992," ILR Review, Cornell University, ILR School, vol. 50(4), pages 594-609, July.
    13. 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.
    14. Myeong-Su Yun, 2005. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," Economic Inquiry, Western Economic Association International, vol. 43(4), pages 766-772, October.
    15. repec:ulb:ulbeco:2013/138902 is not listed on IDEAS
    16. Kao, Charng & Polachek, Solomon W & Wunnava, Phanindra V, 1994. "Male-Female Wage Differentials in Taiwan: A Human Capital Approach," Economic Development and Cultural Change, University of Chicago Press, vol. 42(2), pages 351-374, January.
    17. Judith Fields & Edward N. Wolff, 1995. "Interindustry Wage Differentials and the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 49(1), pages 105-120, October.
    18. Tao, Yu-Li & Chuang, Hwei-Lin & Lin, Eric S., 2016. "Compensation and performance in Major League Baseball: Evidence from salary dispersion and team performance," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 151-159.
    19. Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
    20. 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.
    21. Gannicott, Kenneth, 1986. "Women, Wages, and Discrimination: Some Evidence from Taiwan," Economic Development and Cultural Change, University of Chicago Press, vol. 34(4), pages 721-730, July.
    22. 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.
    23. repec:ulb:ulbeco:2013/134392 is not listed on IDEAS
    24. William C. Horrace & Ronald L. Oaxaca, 2001. "Inter-Industry Wage Differentials and the Gender Wage Gap: An Identification Problem," ILR Review, Cornell University, ILR School, vol. 54(3), pages 611-618, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nii-Aponsah, Hubert, 2022. "Automation exposure and implications in advanced and developing countries across gender, age, and skills," MERIT Working Papers 2022-021, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    2. Cruz, Gabriel & Rau, Tomás, 2022. "The effects of equal pay laws on firm pay premiums: Evidence from Chile," Labour Economics, Elsevier, vol. 75(C).
    3. Adusei, Michael, 2019. "Board gender diversity and the technical efficiency of microfinance institutions: Does size matter?," International Review of Economics & Finance, Elsevier, vol. 64(C), pages 393-411.
    4. Chang, Carolyn W. & Lin, Bing-Huei & Yu, Min-Teh, 2018. "Derivatives trading information, stock market behavior, and financial institutions," International Review of Economics & Finance, Elsevier, vol. 55(C), pages 324-325.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. 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.
    3. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
    4. Beyza Ural & William Horrace & Jin Hwa Jung, 2009. "Inter-industry gender wage gaps by knowledge intensity: discrimination and technology in Korea," Applied Economics, Taylor & Francis Journals, vol. 41(11), pages 1437-1452.
    5. Sonja C. Kassenboehmer & Mathias G. Sinning, 2014. "Distributional Changes in the Gender Wage Gap," ILR Review, Cornell University, ILR School, vol. 67(2), pages 335-361, April.
    6. Ronald Bachmann & Mathias Sinning, 2016. "Decomposing the Ins and Outs of Cyclical Unemployment," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 78(6), pages 853-876, December.
    7. Lin, Carl, 2012. "Less Myth, More Measurement: Decomposing Excess Returns from the 1989 Minimum Wage Hike," IZA Discussion Papers 6269, Institute of Labor Economics (IZA).
    8. ChangHwan Kim, 2010. "Decomposing the Change in the Wage Gap Between White and Black Men Over Time, 1980-2005: An Extension of the Blinder-Oaxaca Decomposition Method," Sociological Methods & Research, , vol. 38(4), pages 619-651, May.
    9. Lamprea-Barragan, T. C & García- Suaza, A. F., 2021. "Decomposing the Gender Pay Gap in Colombia: Do Industry and Occupation Matter?," Documentos de Trabajo 19437, Universidad del Rosario.
    10. Judith K. Hellerstein & David Neumark, 2006. "Using Matched Employer–Employee Data to Study Labor Market Discrimination," Chapters, in: William M. Rodgers III (ed.), Handbook on the Economics of Discrimination, chapter 2, Edward Elgar Publishing.
    11. Ben Jann, 2008. "A Stata implementation of the Blinder-Oaxaca decomposition," ETH Zurich Sociology Working Papers 5, ETH Zurich, Chair of Sociology, revised 14 May 2008.
    12. Foster, E. Michael & Hillemeier, Marianne M. & Bai, Yu, 2011. "Explaining the disparity in placement instability among African-American and white children in child welfare: A Blinder-Oaxaca decomposition," Children and Youth Services Review, Elsevier, vol. 33(1), pages 118-125, January.
    13. Dominique Meurs & Sophie Ponthieux, 2006. "L'écart des salaires entre les femmes et les hommes peut-il encore baisser ?," Économie et Statistique, Programme National Persée, vol. 398(1), pages 99-129.
    14. Ian W. Li & Paul W. Miller, 2012. "Gender Discrimination in the Australian Graduate Labour Market," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 15(3), pages 167-199.
    15. Michael Weber & Jan Kluge, 2015. "Decomposing the German East-West wage gap," ERSA conference papers ersa15p636, European Regional Science Association.
    16. Amairisa Koukia & Robert M. Sauer, 2022. "Remote Work, Children’s Health and the Racial Gap in Female Wages," CHILD Working Papers Series 104 JEL Classification: C, Centre for Household, Income, Labour and Demographic Economics (CHILD) - CCA.
    17. Kouki, Amairisa & Sauer, Robert M., 2022. "Remote Work, Children's Health and the Racial Gap in Female Wages," IZA Discussion Papers 15072, Institute of Labor Economics (IZA).
    18. Raúl Ramos & Esteban Sanromá & Hipólito Simón, 2014. "Public-Private Sector Wage Differentials by Type of Contract: Evidence from Spain," Hacienda Pública Española / Review of Public Economics, IEF, vol. 208(1), pages 107-141, March.
    19. Hansen, Henrik & Rand, John & Win, Ngu Wah, 2022. "The gender wage gap in Myanmar: Adding insult to injury?," Journal of Asian Economics, Elsevier, vol. 81(C).

    More about this item

    Keywords

    Gender wage gap; Financial industry; Manpower utilization survey; Interindustry ranking;
    All these keywords.

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:reveco:v:55:y:2018:i:c:p:246-258. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620165 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.