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Gender wage gap in the workplace: Does the age of the firm matter?

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  • Iga Magda
  • Ewa Cukrowska-Torzewska

Abstract

We contribute to the literature on firm-level determinants of gender wage inequalities by studying the link between a firm’s age and the size of its gender pay gap. Using European Structure of Earnings data for eight European countries, we find that in all of these countries, the gender wage gaps are smallest in the youngest firms. Our results also show that in Central European countries, the size of the gender pay gap clearly increases with the age of the company; whereas there is no such link in the older EU member states. Levels of gender wage inequality appear to be highest in companies that were previously state-owned, but were privatized during the transition. We interpret our findings with the support of competition and monopsony theories.

Suggested Citation

  • Iga Magda & Ewa Cukrowska-Torzewska, 2019. "Gender wage gap in the workplace: Does the age of the firm matter?," IBS Working Papers 01/2019, Instytut Badan Strukturalnych.
    • Handle: RePEc:ibt:wpaper:wp012019
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    References listed on IDEAS

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    2. Vathsala Wickramasinghe & Anuradha Premachandra, 2021. "Organizational career growth: the mediating role of career management practices," SN Business & Economics, Springer, vol. 1(6), pages 1-29, June.

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    More about this item

    Keywords

    gender wage gap; wage inequalities; transition; age of firms;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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