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Gender wage gap and education: a stochastic frontier approach

Author

Listed:
  • Carmen Garcia-Prieto
  • Patricia Gómez-Costilla

Abstract

Purpose - The purpose of this paper is to get deeper insight into the measurement of gender wage gap. A proper method to identify which part of gender wage differences is due to discrimination against women is provided, and the relationship between wage differences and education is studied. Design/methodology/approach - The stochastic frontier approach is employed to measure wage discrimination against women by using Spanish data from the European Union Statistics on Income and Living Conditions. Mentioned technique allows the authors to split the gender wage gap of workers displaying the same characteristics into two components: the first measures inefficiency in the job search process caused by imperfect information or gender differences concerning preferences regarding working conditions, where as the second takes account of discrimination. Findings - A significant level of discrimination is found in the Spanish labour market at all educational levels, but this problem is quantitatively more important when low-educated workers are studied, and gender discrimination is lower for highly educated women. Originality/value - In this paper, workers’ potential wage is estimated, and gender discrimination is measured by the gender potential wage gap, since it is not dependent on other wage determinants such as diverse preferences, unmeasured working abilities or imperfect information.

Suggested Citation

  • Carmen Garcia-Prieto & Patricia Gómez-Costilla, 2017. "Gender wage gap and education: a stochastic frontier approach," International Journal of Manpower, Emerald Group Publishing Limited, vol. 38(3), pages 504-516, June.
    • Handle: RePEc:eme:ijmpps:ijm-11-2015-0186
    DOI: 10.1108/IJM-11-2015-0186
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    Citations

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    Cited by:

    1. Sara Pinillos-Franco & Carmen García-Prieto, 2017. "The gender gap in self-rated health and education in Spain. A multilevel analysis," PLOS ONE, Public Library of Science, vol. 12(12), pages 1-11, December.
    2. Patricia Gómez-Costilla & Carmen García-Prieto & Noelia Somarriba-Arechavala, 2022. "Aging and Gender Health Gap: A Multilevel Analysis for 17 European Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 160(2), pages 1051-1069, April.
    3. Joanna María Bashford-Fernández & Ana Rodríguez-Álvarez, 2019. "Wage Frontiers in Pre and Post-crisis Spain: Implications for Welfare and Inequality," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(2), pages 579-608, June.
    4. Khalid Maman Waziri, 2017. "Generalized Glass Ceilings in the United States – A Stochastic Metafrontier Approach," Working Papers halshs-01569834, HAL.
    5. Alfano Vincenzo & Cicatiello Lorenzo & Gaeta Giuseppe Lucio & Pinto Mauro, 2021. "The Gender Wage Gap among Ph.D. Holders: Evidence from Italy," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(3), pages 1107-1148, July.

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