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The Gender Wage Gap and Sex Segregation in Finland

Tomi Kyyrä () and Ossi Korkeamäki

No 288, Discussion Papers from VATT Institute for Economic Research

Abstract: This paper investigates how the segregation of women and men into certain occupations, industries, firms and jobs within the firms is reflected in the gender wage gap in the Finnish manufacturing sector. Using matched employer-employee data we evaluate wage differentials between men and women doing the same kind of job for the same employer. This allows us to differentiate between wage differentials caused by human capital differences, wage differentials resulting from labour market segregation and within-job wage differentials. We find that at least half of the gender wage gap can be attributed to labour market segregation while human capital differences by sex account for less than 10 percent.

Keywords: Gender wage gap, wage discrimination, sex segregation, Labour market, Työmarkkinat, Labor market and policies promoting economic growth, Työmarkkinat ja kasvua tukeva politiikka, J160 - Economics of Gender; Non-labor Discrimination, J310 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc. (industry, schooling, experience, tenure, cohort, etc.), J700 - Labor Discrimination: General, (search for similar items in EconPapers)
Date: 2003
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