Who Works for Whom and the UK Gender Pay Gap

42 Pages Posted: 11 Mar 2018 Last revised: 1 Dec 2018

See all articles by Sarah Jewell

Sarah Jewell

University of Reading - School of Economics

Giovanni Razzu

University of Reading

Carl Singleton

Department of Economics, University of Reading

Date Written: November 29, 2018

Abstract

This study reports novel facts about the UK gender pay gap. We use a representative, longitudinal and employer-employee linked dataset for the years 2002-16. Men’s average log hourly wage was 22 points higher than women’s in this period. We find that 16% of this raw pay gap is accounted for by estimated firm-specific wage effects. This is almost three times the amount explained by the occupation differences between men and women. When we decompose a preadjusted measure of the pay gap, we find that less than 1 percentage point is accounted for by the allocation of men and women across high and low wage firms. In other words, only a small share (6%) of what is traditionally referred to as the ‘unexplained’ part of the pay gap is in fact explained by the differences between men and women in whom they work for.

Keywords: gender wage gap, firm-specific wages, occupation premiums

JEL Classification: J16, J31, J70

Suggested Citation

Jewell, Sarah and Razzu, Giovanni and Singleton, Carl, Who Works for Whom and the UK Gender Pay Gap (November 29, 2018). Available at SSRN: https://ssrn.com/abstract=3137330 or http://dx.doi.org/10.2139/ssrn.3137330

Sarah Jewell

University of Reading - School of Economics ( email )

Reading, RG6 6AA
United Kingdom

Giovanni Razzu

University of Reading ( email )

Whiteknights
Reading, Berkshire RG6 6AH
United Kingdom

Carl Singleton (Contact Author)

Department of Economics, University of Reading ( email )

Whiteknights
Reading, Berkshire RG6 6AH
United Kingdom

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