Decomposing wage discrimination in Germany and Austria with counterfactual densities

Grandner, Thomas and Gstach, Dieter (2012) Decomposing wage discrimination in Germany and Austria with counterfactual densities. Department of Economics Working Paper Series, 145. WU Vienna University of Economics and Business, Vienna.


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Using income and other individual data from EU-SILC for Germany and Austria, we analyze wage discrimination for three break-ups: gender, sector of employment, and country of origin. Using the method of Machado and Mata [2005] the discrimination over the whole range of the wage distribution is estimated. Significance of results is checked via confidence interval estimates along the lines of Melly [2006]. To narrow down the extent of discrimination both basic decomposition possibilities are compared. The economies of Germany and Austria appear structurally very similar. Especially the institutional setting of the labor markets seem to be closely comparable. One would, therefore, expect to find similar levels and structures of wage discrimination. Our findings deviate from this conjecture significantly.

Item Type: Paper
Keywords: wage discrimination / decomposition / quantile-regression / Einkommensunterschied / Lohndiskriminierung
Classification Codes: RVK QV 350 ; JEL J31, J71
Divisions: Departments > Volkswirtschaft
Depositing User: Doris Anita Oberdabernig
Date Deposited: 22 Aug 2012 07:47
Last Modified: 09 Mar 2020 14:05
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