This paper explores a newly available Italian panel dataset obtained
from a 1:90 sample of social security administrative records (INPS) to
investigate whether observed differences in the characteristics of
workers and firms, and observed differences in job mobility are able to
explain gender differences in log wage growth. We focus on the wage
growth of individuals aged 15-30, a crucial period in the formation of
lifetime earnings. We find that there is a significant and growing pay
differential between men and women during their early careers, and that
between-firm wage growth is substantially higher for men than for women.
Controlling for individual observed and unobserved heterogeneity does
not reduce, instead exacerbates the effect of a firm change on the
gender wage growth gap. On the other hand, when we take into account the
type of industry, occupation, and the size of the firm workers move to
when changing employer we see a reduction of the unexplained gender
differential. We also find that women are not always penalized with
respect to men, but this occurs only for positive wage changes, for the
highest wage increases, and when women move towards larger firms. These
results suggest that job and firm characteristics, rather than
across-the-board discrimination, are the most important determinants of
the gender wage growth differential in the Italian labour market.
Presented by:
Emilia Del Bono, ISER ( joint with Daniela Vuri, University of Florence)
Date & time:
June 7, 2006 12:00 pm - June 6, 2006 11:00 pm
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