The Gender Wage Gap in Portugal: Recent Evolution and Decomposition

Using data from the Personnel Records (Quadros de Pessoal) for the period 1985-2000, we analyse the gender wage gap in Portugal. We estimate wage discrimination and endowment differentials using four decomposition methods. Our main concern is to analyse the key factors that lie behind the persistent gender pay gap despite the deep changes that characterise the recent evolution of the Portuguese labour market and the high female participation rate that exists in the country. Moreover, using the Neumark methodology, we discuss the relative contribution of different factors in explaining the gender pay gap. The results suggest that, in accordance with previous international research, the measured discrimination differential dominates the estimated endowment differential. Over time, a relevant discrimination gap persisted and it didn’t show any tendency to decrease. Results are also consistent in showing that the most important difference in attributes to explain the gender pay gap is the way how males and females are distributed by sector of industry. As to human capital variables, their relative importance to the explanation of the gender pay gap has reduced sharply, particularly along the 90’s.