From wage regulation to wage gap: how wage-setting institutions and structures shape the gender wage gap across three industries in 24 European countries and Germany

Andrea Schäfer and Karin Gottschall

Cambridge Journal of Economics, 2015, vol. 39, issue 2, 467-496

Abstract: Whilst a common and persisting feature of advanced market economies, the gender wage gap nevertheless varies across countries. Amongst the factors affecting this wage gap, industrial relations and industry differences still require further research. Using data from EU-SILC in 25 European countries, this article analyses how national wage-setting institutions impact wage differences between male and female full-time employees in three distinct industries. Complementing the country comparison is an in-depth study of the German case using data from the German Linked Employer-Employee Database, shedding light on the interaction of industry-specific wage-setting regulations and gender equity in living wages. Findings from the international comparison suggest a substantial gender wage gap for full-time employees across industries with specific country patterns. Country patterns seem to be due to the overall influence of trade unions and the relationship between pay bargaining strategies and specific minimum wage policies. The German case adds to these findings by analysing the impact of sectoral models of wage bargaining for industry-specific gender wage gaps, focussing on living wages for skilled full-time employees.

Date: 2015
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