Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/110264
Authors: 
Gallego-Granados, Patricia
Geyer, Johannes
Year of Publication: 
2015
Series/Report no.: 
SOEPpapers on Multidisciplinary Panel Data Research 753
Abstract: 
The gender wage gap is a persistent labor market phenomenon. Most research focuses on the determinants of these wage differences. We contribute to this literature by exploring a different research question: if wages of women are systematically lower than male wages, what are the distributional consequences (disposable income) and what are the labor market effects (labor supply) of the wage gap? We demonstrate how the gender gap in gross hourly wages shows up in the distribution of disposable income of households. This requires taking into account the distribution of working hours as well as the tax-benefit system and other sources of household income. We present a methodological framework for deriving the gender wage gap in terms of disposable income which combines quantile decomposition, simulation techniques and structural labor supply estimation. This allows us to examine the implications of the gender wage gap for income inequality and working incentives. We illustrate our approach with an application to German data.
Subjects: 
gender wage gap
quantile regression
wage decomposition
labor supply
microsimulation
income distribution
tax-benefit system
JEL: 
D31
J31
J16
H23
Document Type: 
Working Paper

Files in This Item:
File
Size
619.59 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.