Who Works for Whom and the UK Gender Pay Gap

British Journal of Industrial Relations, 58(1), 2020

44 Pages Posted: 11 Mar 2018 Last revised: 24 Dec 2020

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: April 1, 2019

Abstract

This study reports novel facts about the UK gender pay gap. We use a representative, longitudinal and linked employer-employee dataset for 2002-16. Men’s average log hourly wage was 22 points higher than women’s in this period. We find 16% of this raw pay gap is accounted for by estimated firm-specific wage effects. This is almost three times the amount explained by gender occupation differences. When we decompose a preadjusted measure of the pay gap, we find less than 1 percentage point or a 6% share is accounted for by the gender allocation across high and low wage firms. In other words, only a small share of what is traditionally referred to as the ‘unexplained’ part of the pay gap is 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 (April 1, 2019). British Journal of Industrial Relations, 58(1), 2020, 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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