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Gender wage gap in the workplace: Does the age of the firm matter?

Iga Magda () and Ewa Cukrowska-Torzewska ()

No 01/2019, IBS Working Papers from Instytut Badan Strukturalnych

Abstract: We contribute to the literature on firm-level determinants of gender wage inequalities by studying the link between a firm’s age and the size of its gender pay gap. Using European Structure of Earnings data for eight European countries, we find that in all of these countries, the gender wage gaps are smallest in the youngest firms. Our results also show that in Central European countries, the size of the gender pay gap clearly increases with the age of the company; whereas there is no such link in the older EU member states. Levels of gender wage inequality appear to be highest in companies that were previously state-owned, but were privatized during the transition. We interpret our findings with the support of competition and monopsony theories.

Keywords: gender wage gap; wage inequalities; transition; age of firms (search for similar items in EconPapers)
JEL-codes: J16 J31 J45 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2019-01
New Economics Papers: this item is included in nep-eur, nep-gen and nep-tra
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