Are Female Workers Less Productive Than Male Workers?

This paper addresses whether there are productivity differences between men and women among blue-collar workers. We compare the wages under piece- and time-rate contracts of men and women working in the same occupation in the same establishment in three countries: the U.S., Norway, and Sweden. The findings are summarized in four points. First, the gender wage gap is smaller under piece- than under time-rate work. According to the interpretation put forth here, two thirds of the gap at the occupation–establishment level is due to productivity differences, while one third is not “accounted for”, but could be due to discrimination or experience or other factors. Productivity differences between sexes in typically male-dominated blue-collar industries are however very small, of 1– 3%: Sweden 1%, U.S. 2% and Norway 3%. Second, in age groups where women on average have extensive family obligations, the wage gap is larger than in other age groups. Third, under time-rate work, the wage gap is more or less independent of supposed occupation-based productivity differences between men and women, while under piece-rate work, the wage gap mirrors quite closely assumed productivity differences, with women receiving a wage premium in female-advantageous settings and a penalty in male-advantageous settings. Fourth, in contrast to Sweden, in Norway and the U.S. women sort more often into piece-rate work than men.

The Within-Job Gender Wage Gap: The Case of Sweden

For the U.S. and for Norway it has been established that men and women working in the same occupation for the same employer receive more or less the same pay. So-called within-job wage discrimination is hence not a driving force for the gender wage gap. We report a comparative and comprehensive empirical study of wage differences between men and women in the same detailed occupation within the same establishment for a European economy, Sweden. We report three striking findings. The first is that within-job wage differences are relatively small. When one compares men and women who work in the same occupation and establishment: Women on average earn 1.4% less per hour than men among blue-collar workers, while 5.0% less among white-collar workers. The second finding is that among white-collar workers it is occupational segregation which really accounts for the existing wage differences and that establishment segregation accounts for less, whereas among blue-collar workers the two types of segregation are about equally important. The third finding is that even the within-occupation gaps are relatively small, less than 5% and 7% among blue- and white-collar workers respectively. We conducted these analyses for the period 1970-1990 and the results are stable over time