European Business Schools Librarian's Group

Department of Economics Working Papers,
Vienna University of Economics and Business, Department of Economics

No 302: Swinging female labor demand – How the public sector influences gender wage gaps in Europe

Paul Ramskogler (), Aleksandra Riedl () and Florian Schoiswohl ()
Additional contact information
Paul Ramskogler: Oesterreichische Nationalbank
Aleksandra Riedl: Oesterreichische Nationalbank
Florian Schoiswohl: Bundesministerium für Finanzen

Abstract: We incorporate an economy’s sectoral structure into a standard theoretical framework to explain the influence of relative demand and supply effects on the gender wage gap. Using micro data covering 30 European countries over the 2003-2013 period, we construct a unique macro panel of gender wage gaps. We demonstrate that the public sector has causally determined half of the decrease in the gender wage gap over the period, thus acting as a ’swing demander’ for female labor. We further prove that it is exclusively demand factors and not composition effects that are driving this result.

Keywords: Female net supply, Labor demand in the public sector, Remuneration effect, Wage inequality

JEL-codes: J3; J5; J7 October 2020

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