The Role of Firms in the Gender Wage Gap in Germany
This review contributes to a better understanding of the gender wage gap in Germany
and puts forward key elements of a policy package to reduce gender pay gaps. It provides
a detailed analysis of the role of firms in the gender wage gap by focusing on the
pay gap between similarly skilled men and women between and within firms. The within-firm
component captures differences in pay between men and women within firms related to
differences in tasks and responsibilities, or differences in pay for work of equal
value (e.g. bargaining, discrimination). The between-firm component captures the role
of differences in pay between firms (unrelated to workforce composition) due to the
tendency of women to work in low-wage firms. The review analyses gender differences
in job mobility and the earnings consequences of career breaks following childbirth
to shed light on the evolution of the gender wage gap across the working life. To
put results for Germany in context, they are systematically benchmarked to those of
four nearby countries (i.e. Denmark, France, the Netherlands and Sweden). The policy
discussion extends the empirical analysis by putting forward a comprehensive policy
package with an emphasis on policies targeted at firms.
Published on October 12, 2022
In series:Gender Equality at Workview more titles