VOLUME XVI
WINTER 2008

TRENDS IN THE GENDER WAGE GAP IN SPAIN
 
HIPÓLITO J. SIMÓN
Universidad de Alicante
RAÚL RAMOS LOBO
ESTEBAN SANROMÁ

Universidad de Barcelona
 
This study examines the determinants of the gender gap in earnings and its evolution between 1995 and 2002. We use an extension of the decomposition methodology of Juhn et al. (1991, 1993) adapted to matched employer-employee data drawn from the Encuesta de Estructura Salarial. Our analysis reveals that female segregation in low-paying firms and unobservable factors are outstanding origins of the gap in the Spanish labour market. It is also observed that, although better relative qualifications of females have tended, together with other factors, to reduce the gap, its positive effect on female relative wages has been almost completely offset by that of a higher female segregation into low-wage firms. Finally, it is also of concern that the intensification of this type of segregation has been particularly significant for high-skilled women and that, as a consequence, their gender gap in earnings has increased over time.
 
Key words: Gender gap in earnings, matched employer-employee data, Juhn-Murphy-Pierce decomposition.
JEL classification: J16, J70.

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