Inequality-adjusted gender wage differentials in Germany

Ekaterina Selezneva, Philippe Van Kerm

Research output: Working paper

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Abstract

This paper exploits data from the German Socio-Economic Panel (SOEP) to re-examine the gender wage gap in Germany on the basis of inequality-adjusted measures of wage differentials which fully account for gender differences in pay distributions. The inequality-adjusted gender pay gap measures are significantly larger than suggested by standard indicators, especially in East Germany. Women appear penalized twice, with both lower mean wages and greater wage inequality. A hypothetical risky investment question collected in 2004 in the SOEP is used to estimate individual risk aversion parameters and benchmark the ranges of inequality-adjusted wage differentials measures.
Original languageEnglish
PublisherCEPS/INSTEAD
Number of pages28
Publication statusPublished - 2013

Publication series

NameWorking Papers
PublisherCEPS/INSTEAD
No.2013-18

Keywords

  • East and West Germany
  • SOEP
  • Singh-Maddala distribution
  • copula-based selection model
  • expected utility
  • gender gap
  • risk aversion
  • wage differentials
  • wage inequality

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