WIFO Working Papers

Discussion papers by WIFO staff, consultants and guests – As of 2006 available online only – Free download

WIFO Working Papers are not peer reviewed and are not necessarily based on a coordinated position of WIFO. The authors were informed about the Guidelines for Good Scientific Practice of the Austrian Agency for Research Integrity (ÖAWI), in particular with regard to the documentation of all elements necessary for the replicability of the results.

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About Time: The Narrowing Gender Wage Gap in Austria
WIFO Working Papers, 2019, (589), 42 pages
Online since: 31.10.2019 0:00
We examine the gender wage gap in Austria from 2005 to 2017 using data from EU-SILC. The raw wage gap declined from 18.6 log points in 2005 to 14.9 log points in 2017. We use standard decomposition techniques that correct for differences in the distributions of human capital and other variables between men and women. All calculated decompositions indicate that the unexplained part of the gender wage gap decreased substantially over the last ten years. The decrease of the unexplained gender wage gap between the largest gap in this period (2006) and the most recent gap (2017) ranges from 3.7 log points to 8.5 log points depending on the decomposition approach. Using the approach developed by Neumark (1988), the corrected wage gap shrank from 8.7 log points in 2005 (8.8 log points in 2006) to 5.1 log points in 2017. The main reason for the decline in wage differences is the relative improvement of women's observed and unobserved characteristics.
JEL-Codes:J31, J71
Keywords:gender wage differentials, wage inequality, decomposition, EU-SILC
Research group:Labour Market, Income and Social Security
Language:English