30 Sep 13

Inequality-adjusted gender wage differentials in Germany.

Authors: SELEZNEVA Ekaterina, VAN KERM Philippe.

Abstract: This paper exploits data from the German Socio-Economic Panel (SOEP) to re-examine the gender wage gap in Germany on the basis of inequality-adjusted measures of wage differentials which fully account for gender differences in pay distributions. The inequality-adjusted gender pay gap measures are significantly larger than suggested by standard indicators, especially in East Germany. Women appear penalized twice, with both lower mean wages and greater wage inequality. A hypothetical risky investment question collected in 2004 in the SOEP is used to estimate individual risk aversion parameters and benchmark the ranges of inequality-adjusted wage differentials measures.

Reference: SELEZNEVA Ekaterina, VAN KERM Philippe. Inequality-adjusted gender wage differentials in Germany. CEPS/INSTEAD, 2013, Working Papers n°2013-18, 28 p.

gender gap,
wage differentials,
wage inequality,
expected utility,
risk aversion,
East and West Germany,
Singh-Maddala distribution,
copula-based selection model

JEL: D63, J31, J70.

Linked publications
VAN KERM Philippe, PI ALPERIN Maria Noel.
Economic Modelling, 2013, vol. 35, pp. 931-939.
Social Choice and Welfare, 2013, vol. 41, n°4, pp. 763–787.
VAN KERM Philippe
Stata Journal, 2012, vol. 12, n°3, pp. 543-548.
HILDEBRAND Vincent, PI ALPERIN Maria Noel, VAN KERM Philippe
CEPS/INSTEAD, 2012, Working Papers n°2012-33, 52 p.