From Gross Wages to Net Household Income: a Distributional Analysis of the Gender Wage Gap

Patricia Gallego Granados and Johannes Geyer

VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy from Verein für Socialpolitik / German Economic Association

Abstract: Numerous studies analyze gender wage differences focusing on gross hourly wages. The analysis of differences in gross wages allows statements on productivity differences between men and women and to quantify the unexplainable wage gap which is often attributed to discrimination. While there is plenty evidence that the gender (gross) wage gap is a persistent labor market phenomenon, less is known about its effects on the income distribution. In this paper, we therefore go a step further and ask how differences in gross wages in particular the unexplained gap show up in disposable income and its distribution. This is particularly relevant from a policy perspective because of its implications for income inequality and working incentives. The empirical analysis is carried out for West Germany with data from the GSOEP pooled for the years 2006 to 2011. Germany is an interesting case because it is one of the few countries with a system of joint taxation for married couples. This leads to high marginal tax rates for second earners and affects after-tax income differences between men and women.

JEL-codes: D31 H23 J16 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/100492/1/VfS_2014_pid_579.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc14:100492

Access Statistics for this paper

More papers in VfS Annual Conference 2014 (Hamburg): Evidence-based Economic Policy from Verein für Socialpolitik / German Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().