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The effect of higher education on the gender wage gap

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  • Ilias Livanos
  • Imanol Núñez

Abstract

In this paper, we investigate the effect of an academic degree on the gender wage gap, examining the cases of Greece and the UK. Using Labour Force Survey (LFS) micro-data, we first compare the returns to higher education for each gender separately, we then decompose the gender wage gap between graduates and individuals with secondary education only, and finally we analyse the effect of higher education on the (un)explained part of the wage gap. For that purpose, an extension of the Oaxaca-Blinder decomposition technique is used. We find that the unexplained part, which is often related to discrimination, is lower for graduates in both countries.

Suggested Citation

  • Ilias Livanos & Imanol Núñez, 2012. "The effect of higher education on the gender wage gap," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 3(1), pages 33-47.
    • Handle: RePEc:ids:ijeded:v:3:y:2012:i:1:p:33-47
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    1. Patrick Bolton & Mathias Dewatripont, 2005. "Contract Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262025760, December.
    2. Banerjee, Dyuti S. & Gaston, Noel, 2004. "Labour market signalling and job turnover revisited," Labour Economics, Elsevier, vol. 11(5), pages 599-622, October.
    3. Ilias Livanos & Çagri Yalkin & Imanol Nuñez, 2009. "Gender employment discrimination: Greece and the United Kingdom," International Journal of Manpower, Emerald Group Publishing Limited, vol. 30(8), pages 815-834, November.
    4. McGuinness, Seamus & Bennett, Jessica, 2007. "Overeducation in the graduate labour market: A quantile regression approach," Economics of Education Review, Elsevier, vol. 26(5), pages 521-531, October.
    5. Arnaud Chevalier, 2007. "Education, Occupation and Career Expectations: Determinants of the Gender Pay Gap for UK Graduates," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 819-842, December.
    6. Black, Dan A. & Smith, J.A.Jeffrey A., 2004. "How robust is the evidence on the effects of college quality? Evidence from matching," Journal of Econometrics, Elsevier, vol. 121(1-2), pages 99-124.
    7. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
    8. Wright, Robert E & Ermisch, John F, 1991. "Gender Discrimination in the British Labour Market: A Reassessment," Economic Journal, Royal Economic Society, vol. 101(406), pages 508-522, May.
    9. Arrow, Kenneth J., 1973. "Higher education as a filter," Journal of Public Economics, Elsevier, vol. 2(3), pages 193-216, July.
    10. Nielsen, Helena Skyt, 1998. "Discrimination and detailed decomposition in a logit model," Economics Letters, Elsevier, vol. 61(1), pages 115-120, October.
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    Cited by:

    1. Abrar ul haq, Muhammad & Mehtab, Nadia & Khan, Tasneem, 2012. "Gender Disparity in Economic Returns to Higher Education: Evidence from Private Formal Sector of Bahawalpur (Pakistan)," MPRA Paper 62958, University Library of Munich, Germany, revised 2012.
    2. Lauren Bari, 2024. "Gendered Divergence in the Impact of Parenthood on Wages: The Role of Family Size, Human Capital and Working Time," Journal of Family and Economic Issues, Springer, vol. 45(3), pages 546-561, September.
    3. Michael Chletsos & Stelios Roupakias, 2020. "Education and wage inequality before and during the fiscal crisis: A quantile regression analysis for Greece 2006–2016," Review of Development Economics, Wiley Blackwell, vol. 24(4), pages 1333-1364, November.
    4. Marie Ligocká, 2022. "The Gender Wage Gap in EU Countries and its Relation to the Educational Attainment and Type of Employment," ACTA VSFS, University of Finance and Administration, vol. 16(1), pages 23-42.
    5. Andreea Mirica, 2014. "Higher Education – A Solution To Unemployment? Case Study: Romania," Romanian Statistical Review, Romanian Statistical Review, vol. 62(3), pages 63-75, September.
    6. Gracia Serrano & Francisco Llamazares & F. Javier Otamendi, 2015. "Measurement and Sustainability of the Qualifications Frameworks in the European Higher Education Area through an Employment Survey on Access to the Labour Market," Sustainability, MDPI, vol. 7(10), pages 1-36, October.
    7. Carolina Castagnetti & Luisa Rosti & Marina Toepfer, 2017. "Overeducation and the Gender Pay Gap in Italy. A Double Selectivity Approach," DEM Working Papers Series 144, University of Pavia, Department of Economics and Management.

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    More about this item

    Keywords

    discrimination; graduates; higher education; gender wage gap; Greece; UK; United Kingdom; academic degrees; secondary education.;
    All these keywords.

    JEL classification:

    • A20 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - General
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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