Where do women earn more than men? Explaining regional differences in the gender pay gap. (7th May 2021)

• Record Type: Journal Article
• Authors: Fuchs, Michaela; Rossen, Anja; Weyh, Antje; Wydra‐Somaggio, Gabriele
• Is Part Of: Journal of regional science. Volume 61:Number 5(2021)
• Page Start: 1065
• Page End: 1086
• Publication Date: 2021-05-07
• Subjects: decomposition -- gender pay gap -- Germany -- regional labor markets -- wages; Economics -- Research -- Periodicals; Regional planning -- Periodicals; 330.072
• DOI: 10.1111/jors.12532
• Languages: English
• ISSNs: 0022-4146

Abstract

Abstract: This paper provides new evidence on the magnitude and determinants of regional differences in the gender pay gap. On the basis of a comprehensive data set of all full‐time employees in Germany, we explain the profound variation of the gender pay gap at a small‐scale level with theory‐based individual and job‐related characteristics. Using the Oaxaca–Blinder decomposition, we find pronounced spatial differences in the impact of the considered determinants. Whereas gender differences in job‐related characteristics are important drivers in regions with a high gender pay gap, individual characteristics come into effect in regions with a low and negative gap. The results underscore the role played by the establishment composition in a region and the kind of jobs provided for gendered earnings.