THE IMPACT OF OCCUPATIONAL SEGREGATION ON OCCUPATIONAL GENDER PAY GAP IN THE EUROPEAN UNION
Journal of Community Positive Practices
The aim of this paper is to analyse the relationship between wages and the fraction of women in an occupation, using variation in the female participation in occupations across European countries. Using data from the European Structure of Earnings Survey 2006 with information about the wages in 93 occupations in 10 countries, we investigate how the wages of men and women and therefore the gender wage gap varies when the fraction of women increases. We allow for non-linearities in this
... s in this relationship. In the raw data we find that mixed occupations pay better than occupations in which mainly men or mainly women are working, but controlling for occupation the picture reverses and we find that especially occupations with a high fraction of women pay more than mixed occupations. Female earnings are almost similar to male earnings when the fraction of women goes down and vice versa, but the effect is stronger in the female occupations, giving men an advantage in the labour market.. and therefore require less pay as compensation, or on the other hand wages in female jobs are lower because of the presence of many women. Since it is impossible to fully characterize occupations in order to control for such variation, more insight could be gained when the fraction of women in occupations could be varied. To answer this question this paper uses data from the European Structure of Earnings Survey 2006 with information about the wages in 93 occupations in 10 countries. We investigate how the wages of men and women and therefore the gender wage gap varies when the fraction of women increases. This paper brings to the existing literature three novelties: first, the research strategy used to rely on cross country variation is new, second, it allows for non-linearity in the effect of occupational segregation on the gender wage gap as most papers find a negative effect and third, the study is conducted at a detailed occupational ISCO 3 digits, while few studies in the world are conducted like this due to the fact that they require a huge sample (Strawinski, et al., 2018) .