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The gender gap in the wage sensitivity of job transitions: a decomposition analysis

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  • Céline Detilleux

    (KU Leuven)

  • Nick Deschacht

    (KU Leuven)

Abstract

Previous research shows that female workers are less sensitive to wages in their decision to switch jobs than male workers, and that this could explain a substantial part of the gender wage gap. This paper studies to what extent gender differences in preferences and personality traits explain the gender gap in the wage-elasticity of job-to-job transitions in the labor market. Using a novel decomposition approach in the context of mediated moderation and using German Socio-Economic Panel Survey (G-SOEP) data for the period 2005–2019, we find that gender differences in risk preferences, patience, trust, reciprocity, altruism, conscientiousness, ambition and self-esteem explain about 25% of the gender gap in wage-elasticities of job separations. A detailed decomposition suggests that risk preferences, trust and ambition contribute most to this gender gap in wage-elasticity.

Suggested Citation

  • Céline Detilleux & Nick Deschacht, 2024. "The gender gap in the wage sensitivity of job transitions: a decomposition analysis," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 58(1), pages 1-12, December.
    • Handle: RePEc:spr:jlabrs:v:58:y:2024:i:1:d:10.1186_s12651-024-00387-6
    DOI: 10.1186/s12651-024-00387-6
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    More about this item

    Keywords

    Gender; Economic preferences; Mediation analysis; Monopsony power;
    All these keywords.

    JEL classification:

    • J42 - Labor and Demographic Economics - - Particular Labor Markets - - - Monopsony; Segmented Labor Markets
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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