Gender and Competition

In almost all European Union countries, the gender wage gap is increasing across the wages distribution. In this lecture I briefly survey some recent studies aiming to explain why apparently identical women and men receive such different returns and focus especially on those incorporating psychological factors as an explanation of the gender gap. Research areas with high potential returns to further analysis are identified. Several examples from my own recent experimental work with Patrick Nolen are also presented. These try to distinguish between the role of nature and nurture in affecting behavioural differences between men and women that might lead to gender wage gaps.glass ceiling, experimental economics, personality differences, behaviour

The Glass Ceiling in Europe: Why Are Women Doing Badly in the Labour Market?

Average gender pay gaps have absorbed the interest of economists for many years. More recently studies have begun to explore the degree to which observed gender wage gaps might differ across the wages distribution. The stylised facts from these studies, summarised in the first part of the paper, are that the gender pay gap in Europe is typically increasing across the wages distribution. This finding - more pronounced in the private than the public sector - has been interpreted as a glass ceiling effect. The existence of this glass ceiling suggests that the average gender pay gap in Europe is mainly due to the gender gap towards the top of the wages distribution. What explains these stylised facts? We briefly outline some relevant hypotheses in the second part of the paper. A fundamental challenge for labour economists is to identify the extent to which these stylised facts are due to policies and institutions, discrimination, to other unobservable factors, or to fundamental differences between men and women. Finally, we briefly summarise the policy initiatives that might be introduced to deal with gender wage gaps.gender, discrimination, glass ceilings, sticky floors, quantile regression decompositions

Gender and Competition

In almost all European Union countries, the gender wage gap is increasing across the wages distribution. In this lecture I briefly survey some recent studies aiming to explain why apparently identical women and men receive such different returns and focus especially on those incorporating pyschological factors as an explanation of the gender gap. Research areas with high potential returns to further analysis are identified. Several examples from my own recent experimental work with Patrick Nolen are also presented. These try to distinguish between the role of nature and nurture in affecting behavioural differences between men and women that might lead to gender wage gaps.personality differences, experimental economics, glass ceiling

Men at Work in a Land Down-under

We use new training data from waves 3-6 of the Household, Income and Labour Dynamics in Australia Survey to investigate the training and wages of full-time men. We explore the extent to which the data are consistent with the predictions of human capital theory or with recent alternative theories based on imperfectly competitive labour markets. According to the raw data, most work-related training received by full-time private sector men is general but it is also paid for by employers. Our fixed effects estimates reveal that this training is associated with higher wages in current and in future firms, and that the effect in future firms is larger and more precisely determined. These results are more consistent with the predictions of human capital theory based on imperfectly competitive labour markets than with the alternative of perfect competition.work-related training, full-time men, training costs, general human capital, turnover

Back-to-front Down-under? Part-time/Full-time Wage Differentials in Australia

In 2003, part-time employment in Australia accounted for over 42% of the Australian female workforce, nearly 17% of the male workforce, and represented 28% of total employment. Of the OECD countries, only the Netherlands has a higher proportion of working women employed part-time and Australia tops the OECD league in terms of its proportion of working men who are part-time. In this paper we investigate part-time full-time hourly wage gaps using important new panel data from the new Household Income and Labour Dynamics in Australia Survey. We find that the usual negative part-time wage penalty found in other countries is not found in Australia once unobserved individual heterogeneity has been taken into account. Instead, part-time men and women typically earn an hourly pay premium. This result survives our numerous robustness checks and we advance some hypotheses as to why there is a positive part-time pay premium.part-time, full-time; efficiency hours; gender

Do Employers Discriminate by Gender? A Field Experiment in Female-Dominated Occupations

We test for gender discrimination by sending fake CVs to apply for entry-level jobs. Female candidates are more likely to receive a callback, with the difference being largest in occupations that are more female-dominated.discrimination, field experiments, employment, gender

Salience, Risky Choices and Gender

Risk theories typically assume individuals make risky choices using probability weights that differ from objective probabilities. Recent theories suggest that probability weights vary depending on which portion of a risky environment is made salient. Using experimental data we show that salience affects young men and women differently, even after controlling for cognitive and non-cognitive skills. Men are significantly more likely than women to switch from a certain to a risky choice once the upside of winning is made salient, even though the expected value of the choice remains the same.gender, salience, risk-aversion, probability weights, cognitive ability

Impact of Paternal Temporary Absence on Children Left Behind

Using the first two waves of the Vietnam Living Standards Survey, we investigate how a father’s temporary absence affects children left behind in terms of their school attendance, household expenditures on education, and nonhousework labour supply in the 1990s. The estimating subsample is children aged 7-18 in households in which both parents usually coreside and the mother has not been absent. Our results indicate that paternal temporary absence increases non housework labour supply by his son. The longer the absence of the father, the larger the impact. One additional month of paternal temporary absence increases a son’s nonhousework labour supply by approximately one week. However, a daughter’s nonhousework labour supply is not affected. We find no evidence that paternal temporary absence influences his children in terms of school attendance or education-related household expenditures.parental absence, temporary migration, schooling, human capital investment, child labour, Vietnam, VLSS

The Health Status of Indigenous and Non-Indigenous Australians

We use unique survey data to examine the determinants of self-assessed health of Indigenous and non-Indigenous Australians. We explore the degree to which differences in health are due to differences in socio-economic factors, and examine the sensitivity of our results to the inclusion of ‘objective’ health measures. Our results reveal that there is a significant gap in the health status of Indigenous and non-Indigenous Australians, with the former characterised by significantly worse health. These findings are robust to alternative estimation methods and measures of health. Although between one third and one half of the health gap can be explained by differences in socio-economic status - such as income, employment status and education - there remains a large unexplained component. These findings have important policy implications. They suggest that, in order to reduce the gap in health status between Indigenous and non-Indigenous Australians, it is important to address disparities in socio-economic factors such as education. The findings also suggest that there are disparities in access to health services and in health behaviour. These issues need to be tackled before Australia can truly claim to have 100% health-care coverage and high levels of health and life expectancy for all of its population.self-assessed health, Indigenous health

Do Employers Discriminate by Gender? A Field Experiment in Female-Dominated Occupations

We test for gender discrimination by sending fake CVs to apply for entry-level jobs. Female candidates are more likely to receive a callback, with the difference being largest in occupations that are more female-dominated.discrimination, field experiments, employment, gender