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What is the true gender wage gap? A comparative analysis using data from Poland

Author

Listed:
  • Lucas Van Der Velde

    (Faculty of Economic Sciences, University of Warsaw)

  • Joanna Tyrowicz

    (Faculty of Economic Sciences, University of Warsaw; National Bank of Poland)

  • Karolina Goraus

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

Given the proliferation of methods to estimate gender wage gap, practical issues arise. The aim of this paper is to compare estimates of the adjusted wage gap from different methods and sets of conditioning variables. We apply available parametric and non-parametric methods to LFS data from Poland for 2012. While the raw gap amounts to nearly 10% of the female wage, after the correction for the endowments, the adjusted wage gap estimates range between 15% and as much as 25% depending on the method and the choice of conditional variables. The differences across methods and conditioning variables do not exceed 3pp. The largest differences emerged between methods estimating gap at the mean and those operating at quantiles. Within the same moment, methods which account for selection into employment yielded higher estimates of the adjusted wage gap. When expanding the conditioning set, to account for possible sorting of women into lower paid jobs, estimates of gap increase. While the actual point estimators of adjusted wage gap are slightly different, all of them are roughly twice as high as the raw gap, which corroborates the policy relevance of this methodological study.

Suggested Citation

  • Lucas Van Der Velde & Joanna Tyrowicz & Karolina Goraus, 2013. "What is the true gender wage gap? A comparative analysis using data from Poland," Working Papers 2013-28, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2013-28
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    File URL: http://www.wne.uw.edu.pl/inf/wyd/WP/WNE_WP113.pdf
    File Function: First version, 2013
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    References listed on IDEAS

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    Cited by:

    1. Avinno Faruk, 2021. "Analysing the glass ceiling and sticky floor effects in Bangladesh: evidence, extent and elements," SN Business & Economics, Springer, vol. 1(9), pages 1-23, September.
    2. Aleksandra Majchrowska & Paweł Strawiński, 2016. "Regional Differences in Gender Wage Gaps in Poland: New Estimates Based on Harmonized Data for Wages," Central European Journal of Economic Modelling and Econometrics, Central European Journal of Economic Modelling and Econometrics, vol. 8(2), pages 115-141, June.
    3. Karolina Goraus & Joanna Tyrowicz, 2014. "Gender Wage Gap in Poland – Can It Be Explained by Differences in Observable Characteristics?," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 36.
    4. Aleksandra Majchrowska & Paweł Strawiński & Karolina Konopczak & Agnieszka Skierska, 2014. "Why are women paid less than men? An investigation into gender wage gap in Poland," Working Papers 2014-31, Faculty of Economic Sciences, University of Warsaw.
    5. Aleksandra Majchrowska & Pawel Strawinski & Karolina Konopczak & Agnieszka Skierska, 2015. "Gender wage gap by occupational groups in Poland," Lodz Economics Working Papers 3/2015, University of Lodz, Faculty of Economics and Sociology.

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    More about this item

    Keywords

    gender wage gap; transition; Poland; decomposition methods;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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