Skip to main content

Decomposition of the Gender Wage Gap Using Matching: An Application for Switzerland

Summary

In this paper, we investigate the gender wage differentials for Switzerland. Using micro data from the Swiss Labour Force Survey, we apply a matching method to decompose the wage gap in Switzerland. This nonparametric technique accounts for wage differences that can be due to differences in the supports. We can interpret these differences as a form of “discrimination” which is reflected in wages because women face “barriers” in accessing certain characteristics that men achieve. As a consequence, accounting for these differences in gender supports may be useful in terms of policy implications in promoting more equality between men and women.

References

  • Abadie, A., Drukker, D., Herr, J. and Imbens, G. (2003), „Implementing Matching Estimators for Average Treatment Effects in Stata”, The Stata Journal, vol. 4, pp. 290–311.

    Google Scholar 

  • Abadie, A. and Imbens, G. W. (2004), “Large Sample Properties of Matching Estimators for Average Treatment Effects”, NBER Working Paper, unpublished manuscript.

  • Altonji, J. and Blank, R. (1999), “Race and Gender in the Labor Market”, in O. Ashenfelter and D. Card (eds), Handbook of Labor Economics, vol. 3, chap. 48, pp. 3143–3259.

  • Barsky, R., Bound, J., Charles, K. and Lupton, J. (2001), “Accounting for the Black-White Wealth Gap: A Nonparametric Approach”, NBER Working Paper No. 8466, September 2001.

  • Blau, F. and Kahn, L. (1997), “Swimming Upstream: Trends in the Gender Wage Differential in the 1980s”, Journal of Labor Economics, vol. 15, pp. 1–42.

    Article  Google Scholar 

  • Blau, F. and Kahn, L. (2000), “Gender Differences in Pay”, Journal of Economic Perspectives, vol. 14, pp. 75–99.

    Article  Google Scholar 

  • Blinder, A. (1973), “Wage Discrimination: Reduced Form and Structural Estimates”, Journal of Human Resources, vol. 8 (4), pp. 436–455.

    Article  Google Scholar 

  • Bonjour, D. (1997), Lohndiskriminierung in der Schweiz: Eine ökonometrische Untersuchung, Berner Beiträge zur Nationalökonomie, Bern-Stuttgart-Wien: Paul Haupt.

    Google Scholar 

  • Bonjour, D. and Gerfin, M. (2001), “The Unequal Distribution of Unequal Pay — An Empirical Analysis of the Gender Wage Gap in Switzerland”, Empirical Economics, vol. 26, pp. 407–427.

    Article  Google Scholar 

  • Brüderl, J., Diekmann, A. and Engelhardt, H. (1993), „Einkommensunterschiede zwischen Frauen und Männern in der Schweiz“, Schweizerische Zeitschriftfür Soziologie, vol. 19, pp. 573–588.

    Google Scholar 

  • Diekmann, A. and Engelhardt, H. (1995), „Einkommensungleichheit zwischen Frauen und Männern. Eine ökonometrische Analyse der Schweizer Arbeitskräfteerhebung“, Schweizerische Zeitschrift für Volkswirtschaft und Statistik, vol. 131, pp. 57–83.

    Google Scholar 

  • Flückiger, Y. and Ramirez, J. (2000), «Analyse Comparative des Salaires entre les Hommes et les Femmes sur la Base de la LSE 1994 et 1996», Observatoire Universitaire de l’Emploi, University of Geneva.

  • Frölich, M. (2003), “Propensity Score Matching without Conditional Independence Assumption — with an Application to the Gender Wage Gap in the UK”, Discussion Paper, University of St. Gallen.

  • Hahn, J. (1998), “On the Role of the Propensity Score in Efficient Semiparametric Estimation of Average Treatment Effects”, Econometrica, vol. 66, pp. 315–331.

    Article  Google Scholar 

  • Heckman, J., Ichimura, H. and Todd, P. (1998), “Matching as an Econometric Evaluation Estimator”, Review of Economic Studies, vol. 65, pp. 261–294.

    Article  Google Scholar 

  • Heckman, J., Lalonde, R. and Smith, J. (1999), “The Economics and Econometrics of Active Labour Market Programs”, in O. Ashenfelter and D. Card (eds), Handbook of Labour Economics, vol. 3A, Amsterdam: North-Holland, pp. 1865–2097.

    Google Scholar 

  • Henneberger, F. and Sousa-Poza, A. (1998), “Estimating Wage Functions and Wage Discrimination Using Data from the 1995 Swiss Labour Force Survey: A Double-Selectivity Approach”, International Journal of Manpower, vol. 19, pp. 486–506.

    Article  Google Scholar 

  • Henneberger, F. and Sousa-Poza, A. (1999), „Geschlechtsspezifische Lohndiskriminierung. Neueste Evidenz von den Mikrodaten aus der Schweizerischen Arbeitskräfteerhebung“, Schweizerische Zeitschrift für Soziologie, vol. 25, pp. 259–279.

    Google Scholar 

  • Kugler, P. (1988), „Lohndiskriminierung in der Schweiz. Evidenz von Mikrodaten“, Schweizerische Zeitschrift für Volkswirtschaft und Statistik, vol. 124, pp. 23–47.

    Google Scholar 

  • Lalive, R. and Stutzer, A. (2004), “Approval of Equal Rights and Gender Differences in Well-Being”, IZA Discussion Paper No. 1202, July 2004.

  • Lechner, M. (2001), “A Note on the Common Support Problem in Applied Evaluation Studies”, Discussion Paper 2001-01, University of St. Gallen.

  • Lechner, M., Miquel, R. and Wunsch, C. (2004), “Long-Run Effects of Public Sector Sponsored Training in West Germany”, Discussion Paper 2004-06, University of St. Gallen.

  • Leuven, E. and Sianesi, B. (2003), “PSMATCH2: Stata Module to Perform Full Mahalanobis and Propensity Score Matching, Common Support Graphing, and Covariate Imbalance Testing”.

  • Mulligan, C. and Rubinstein, Y. (2005), “Selection, Investment and Women’s Relative Wages since 1975”, NBER Working Paper No. 11159.

  • Nopo, H. (2004), “Matching as a Tool to decompose Wage Gaps”, IZA Discussion Paper No. 981, January 2004.

  • Oaxaca, R. (1973), “Male-Female Differentials in Urban Labor Markets”, International Economic Review, vol. 14, pp. 693–709.

    Article  Google Scholar 

  • OFS (2003), «Vers l’égalité? La situation des femmes et des homes en Suisse», troisième rapport statistique, Neuchâtel.

  • OFS (2005), «Avancée et stagnation dans la problématique de l’égalité entre hommes et femmes de 1970 à 2000», Neuchâtel.

  • Olivetti, C. and Petrongolo, B. (2006), “Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps”, IZA Discussion Paper No. 1941.

  • Rosenbaum, P. and Rubin, D. (1983), “The Central Role of the Propensity Score in Observational Studies for Causal Effects”, Biometrika, vol. 70, pp. 41–55.

    Article  Google Scholar 

  • Sousa-Poza, A. (2002), “Labor Market Segmentation and the Gender Wage Gap: An Industry-Level Analysis for Switzerland”, Cahiers Economiques de Bruxelles, vol. 45, pp. 91–118.

    Google Scholar 

  • Sousa-Poza, A. (2003), “The Gender Wage Gap and Occupation Segregation in Switzerland”, 1991–2001, Discussion Paper No. 89, University of St. Gallen.

  • Waldfogel, J. (1998), “Understanding the ‘Family Gap’ in Pay for Women with Children”, Journal of Economic Perspectives, vol. 12, pp. 157–170.

    Article  Google Scholar 

  • Weichselbaumer, D. and Winter-Ebmer, R. (2005), “A Meta-Analysis on the International. Gender Wage Gap”, Journal of Economic Surveys, vol. 19 (3), pp. 479–511.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Dragana Djurdjevic.

Rights and permissions

Open Access This article is distributed under the terms of the Creative Commons Attribution 2.0 International License ( https://creativecommons.org/licenses/by/2.0 ), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Reprints and permissions

About this article

Cite this article

Djurdjevic, D., Radyakin, S. Decomposition of the Gender Wage Gap Using Matching: An Application for Switzerland. Swiss J Economics Statistics 143, 365–396 (2007). https://doi.org/10.1007/BF03399243

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/BF03399243

Keywords

JEL-Classification