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Most existing analyses on the gender wage gap (GWG) have neglected the establishment as a place where inequality between male and female employees arises and is maintained. The use of linked employee-employer data permits us to move beyond the individual and consider the importance of the workplace to explain gender pay differentials. That is, we first provide a comprehensive study on the effects of various firm characteristics and the institutional framework on the GWG in Germany. The innovation of our research is that we do not just compare average male and female wages (of specific groups of employees), but look at within-firm gender wage differentials. Our results indicate that the mean GWG within firms is smaller than the average overall GWG. Furthermore, we can show that firms with formalized co-determination (works council) and those covered by collective wage agreements are more likely to have smaller GWG. It is also interesting to note that the wage differential between men and women decreases with firm size and increases with the wage level.
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.
We study the 2018 German Pay Transparency policy which allows employees in establishments with more than 200 workers, to ask their employers for information about the average earnings of their opposite-gender coworkers who do "equal work". Using an event study design and matched employer-employee data, we show that the policy had no discernible effects on male and female wages, thus leaving the gender wage gap unchanged. Using survey evidence, we further show that only 1% of men and 2.7% of women had asked their employers for information in the previous year. We find that workers were not willing to ask for information either because they believed that there was no significant gender pay gap at their workplaces or because they were apprehensive of hurting their "image". We argue that transparency, as enacted in Germany, placed an additional barrier to information access by requiring workers to seek out information instead of mandating firms to disclose data.
Bachelor Thesis from the year 2013 in the subject Business economics - Business Management, Corporate Governance, grade: First Class, New College Durham (New College Durham/ Leeds Metropolitan University), language: English, abstract: The purpose of this project was to analyse to what extent gender equality has been achieved, which barriers still exist in female employment and to evaluate opportunities for women in the UK in comparison to those in Germany. The author reviewed a wide array of sources, such as studies, laws and articles, but the main analysis was done on the basis of extensive data that has been collected by the OECD and the World Economic Forum. Based on those findings, gender gaps concerning labour force participation, occupational sectors and types of work as well as wages and pensions were identified for both countries. More specifically this paper provides information on the main barriers for women in employment, the most important of which are maledominated corporate cultures and discrimination. Especially mothers experience barriers, like the lack of affordable childcare, insufficient flexible working options, or the fact that people who use those are disadvantaged as well as unequal contribution of unpaid work and childcare, despite laws that allow fathers to participate more in family life. During the whole project, the applicability of theories such as the ‘Glass Ceiling’, the ‘Sticky Floor’ or the ‘Opt-Out Revolution’ has been tested in order to identify reasons for inequality. Furthermore, measures which have already been taken against the existing barriers were described, and some that could be taken in the future were suggested. Differences between conditions for women in Germany and the UK have been analysed, compared and evaluated, with the result that the UK offers slightly better chances, but both countries achieve quite different results in particular categories. Depending on which aspects a woman puts emphasis on, this thesis can help to decide which country is best to live and raise a family in.
We analyze the impact of women's managerial representation on the gender pay gap among employees on the establishment level using German Linked-Employer-Employee- Data from the years 2004 to 2018. For identification of a causal effect we employ a panel model with establishment fixed effects and industry-specific time dummies. Our results show that a higher share of women in management significantly reduces the gender pay gap within the firm. An increase in the share of women in first-level management e.g. from zero to above 33 percent decreases the adjusted gender pay gap from a baseline of 15 percent by 1.2 percentage points, i.e. to roughly 14 percent. The effect is stronger for women in second-level than first-level management, indicating that women managers with closer interactions with their subordinates have a higher impact on the gender pay gap than women on higher management levels. The results are similar for East and West Germany, despite the lower gender pay gap and more gender egalitarian social norms in East Germany. From a policy perspective, we conclude that increasing the number of women in management positions has the potential to reduce the gender pay gap to a limited extent. However, further policy measures will be needed in order to fully close the gender gap in pay.
Despite big societal changes, and many labour market, educational and public policy initiatives, women are still paid less than men. This report presents the first stocktaking of pay transparency tools across OECD countries and explores how such policies can help level the playing field for women and men at work.
This paper studies the effect of firms' export activity on the gender wage gap among its workers. Using matched employer-employee data from Germany for the period between 1993 and 2007, we show that an increase in a firm's export widens the wage gap between male and female blue-collar workers, while it reduces it between male and female white collars. In particular, the former effect is stronger for workers in routine manual tasks, while the latter is driven by employees performing interactive tasks. This evidence is consistent with the hypothesis that serving foreign markets relies more on interpersonal skills, which reinforces female comparative advantage and reduces (widens) the gender wage gap in white-collar (blue-collar) occupations. Our results, identified out of the variation in wages within firm-worker pairs, are robust to controlling for a series of worker and firm characteristics, and a host of firm, sector, time and state fixed effects, and heterogeneous trends.