The Gender Pay Gap in Management Positions in the Private Sector in Germany (Der 'Gender Pay Gap' in Fuehrungspositionen der Privatwirtschaft in Deutschland)

40 Pages Posted: 22 Jul 2010

See all articles by Elke Holst

Elke Holst

German Institute for Economic Research (DIW Berlin); German Institute for Economic Research (DIW Berlin) - German Socio Economic Panel

Anne Busch

German Institute for Economic Research (DIW Berlin) - German Socio Economic Panel

Date Written: April 1, 2009

Abstract

Although there are a variety of studies on the gender pay gap, only a few relate to managerial positions. The present study attempts to fill this gap. Managers in private companies in Germany are a highly selective group of women and men, who differ only marginally in their human capital endowments. The Oaxaca/Blinder decomposition shows that the gender pay gap in the gross monthly salary can hardly be explained using the human capital approach. Adding variables on gender-specific labor market segregation and dimensions of the household and family to the model allows more than two-thirds of the gender pay gap to be explained. However, taking selection effects in a managerial position into account (Heckman correction), the proportion explained decreases to only one-third. This reveals the real extent to which women are disadvantaged on the labor market. In addition, we observe not only that the wages in typical women’s jobs are lower than in typical men’s jobs but also that women are paid less than men in typical women’s jobs. The two-thirds of the gender pay gap that remain unexplained represent the unobserved heterogeneity. This includes, for example, general societal and cultural conditions as well as structures and practices on the labor market and in companies that subject women to pay discrimination and pose an obstacle to them breaking the glass ceiling.

Note: Downloadable document is in German.

Keywords: Gender Pay Gap, managers, segregation, Oaxaca/Blinder decomposition, Heckman correction

JEL Classification: J31, J16, J24

Suggested Citation

Holst, Elke and Busch, Anne, The Gender Pay Gap in Management Positions in the Private Sector in Germany (Der 'Gender Pay Gap' in Fuehrungspositionen der Privatwirtschaft in Deutschland) (April 1, 2009). SOEPpaper No. 169. Available at SSRN: https://ssrn.com/abstract=1393319 or http://dx.doi.org/10.2139/ssrn.1393319

Elke Holst (Contact Author)

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

German Institute for Economic Research (DIW Berlin) - German Socio Economic Panel ( email )

DIW Berlin
Berlin, Berlin 14191
Germany

Anne Busch

German Institute for Economic Research (DIW Berlin) - German Socio Economic Panel ( email )

DIW Berlin
Berlin, Berlin 14191
Germany

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