Gender Pay Gap: A Macro Perspective

29 Pages Posted: 8 Jun 2018

See all articles by Akiko Terada-Hagiwara

Akiko Terada-Hagiwara

Asian Development Bank

Sheila Camingue

Asian Development Bank

Joseph E. Zveglich

Asian Development Bank; Harvard University

Date Written: March 2018

Abstract

This paper examines the factors influencing the gender wage gap by using an unbalanced cross-country aggregated panel data set for a sample covering 53 economies for the period 1995–2010. Using robust estimators proposed by Lewbel (2012) to correct for heterogeneity and endogeneity, results suggest that a higher female share in the industry sector tends to widen the gender wage gap regardless of a country’s development stage. While having more children widens the gender wage gap, as expected, the effect is only statistically significant for developing countries. In developed countries, more labor force participation by women seems to narrow the gender wage gap, probably due to the number of female labor market entrants taking up higher-paying service sector jobs. For developing countries, closing the gender gaps in labor force participation and education is not sufficient to achieve gender wage parity. Higher-paying jobs should be created by developing the service sector in these economies.

Keywords: developing countries, gender, instrumental variables, panel data, wage gap

JEL Classification: E24, J16, J31

Suggested Citation

Terada-Hagiwara, Akiko and Camingue, Sheila and Zveglich, Joseph E., Gender Pay Gap: A Macro Perspective (March 2018). ADBI Working Paper 538. Available at SSRN: https://ssrn.com/abstract=3188504 or http://dx.doi.org/10.2139/ssrn.3188504

Akiko Terada-Hagiwara (Contact Author)

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Sheila Camingue

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Joseph E. Zveglich

Asian Development Bank ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines
(632) 632-5507 (Phone)

Harvard University ( email )

Littauer Center
Cambridge, MA 02138
United States

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