The effect of higher education on the gender wage gap

Livanos, Ilias; Núñez, Imanol

doi:10.1504/ijeed.2012.044952

Cited by 10 publications

(9 citation statements)

References 26 publications

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“…In this context, the education level can be seen as a proxy for unobserved positive individual characteristics, such as productivity (Arrow, 1972). As Livanos and Nunez (2012) argue, discrimination arises from an adverse selection problem where the hidden information is women’s commitment to professional career. In that case, education may act as a signal to employers, that is as a proof of future commitment of female workers to their careers.…”

Section: Discussionmentioning

confidence: 99%

“…As this information remains private, employers only can rely on observable signals, such as the education level, in order to differentiate their wage offers. As higher education requires a certain level of investment, dedication and effort, employers consider women with higher levels of education to be less likely to abandon their jobs in the case of marriage or child-birth (Livanos and Nunez, 2012). This should be the case in our data, while we expect that among the properly educated workers the signaling effect is less clear, because education also features human capital skills required for the job.…”

Section: Discussionmentioning

confidence: 99%

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Overeducation and the gender pay gap in Italy

Castagnetti

Rosti

Töpfer

2018

IJM

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Purpose The purpose of this paper is to highlight the pivotal role of overeducation in explaining the unexplained part of the gender pay gap (GPG), i.e. the component usually attributed to gender discrimination in the Oaxaca-Blinder decomposition. Design/methodology/approach The study uses a large Italian data set (ISFOL PLUS 2005–2014) to estimate the GPG among properly educated and overeducated workers. The model simultaneously accounts for both participation bias and endogeneity bias by applying an extension of the Heckman’s two-stage procedure. Findings Estimates show that the GPG is significantly higher among overeducated than among properly educated workers because women’s unobservable characteristics driving female employment into overeducation also drag down female wages more than men’s unobservable characteristics drag down male wages. Correcting for the participation and overeducation decisions, the unexplained portion of the GPG disappears among overeducated workers, while it remains significant among properly educated individuals. Originality/value The authors draw the conclusion that overeducation is, first, a first-best matching for individuals (both men and women) compensating with more education for their lower productive characteristics. Second, it may be a signaling device for women spending their useless-for-the-job diploma to inform employers on their valuable though unobservable productive characteristics and fight gender wage discrimination. The results favor education as a tool of counteracting gender discrimination. Hence, as females are less overeducated than males despite their larger representation in higher education, there should not be concern that expanding higher education will disadvantage females.

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Section: Discussionmentioning

confidence: 99%

Section: Discussionmentioning

confidence: 99%

Overeducation and the gender pay gap in Italy

Castagnetti

Rosti

Töpfer

2018

IJM

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“…4 Notice, also, that differences in school quality could generate wage differentials among workers (Card & Krueger, 1992). 5 A related strand of the literature fits earnings equations for different types of workers, in terms of gender or nationality (see, e.g., Chletsos & Roupakias, 2017;Demoussis, Giannakopoulos, & Zografakis, 2010;Kanellopoulos & Mavromaras, 2002;Livanos & Núñez, 2012), and suggests that women and migrants have an earnings disadvantage which, in part, is explained by labor market discrimination. 6 According to the estimates presented in Labrianidis and Pratsinakis (2014), nearly three quarters of Greek emigrants have a university degree.…”

Section: Chletsos and Roupakiasmentioning

confidence: 99%

“… 5 5 A related strand of the literature fits earnings equations for different types of workers, in terms of gender or nationality (see, e.g., Chletsos & Roupakias, 2017; Demoussis, Giannakopoulos, & Zografakis, 2010; Kanellopoulos & Mavromaras, 2002; Livanos & Núñez, 2012), and suggests that women and migrants have an earnings disadvantage which, in part, is explained by labor market discrimination. …”

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confidence: 99%

Education and wage inequality before and during the fiscal crisis: A quantile regression analysis for Greece 2006–2016

Chletsos

Roupakias

2020

Review Development Economics

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The Greek labor market has undergone dramatic changes during the past 10 years. Wage inequality, especially at the bottom end of the earnings distribution, increased sharply. Simultaneously, and despite a massive emigration wave of mainly highly educated employees, the ratio of skilled to unskilled labor has further increased. In this paper, we analyze the relationship between education and the dispersion of male earnings, using Labor Force Survey data, for the years 2006 and 2016. We address both unobserved heterogeneity and potential endogeneity by using an instrumental variables estimator, designed for quantile regression modeling. Our best estimates suggest that the returns to education are higher at lower quantiles in the pre-crisis period, while the opposite holds true in the post-crisis period. It is shown that within-group inequality, mainly among university graduates, has played a major role in these developments. Interestingly, our findings appear to be, in part, driven by changing returns to education across quantiles in the public sector. Increased demand for skilled workers, heterogeneous returns to education across different fields of study, and "ability" are proposed as potential underlying mechanisms.

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“…Then, the level of education is associated with the level of wages. Theoretically, workers with higher educational attainment should be paid more than those with lower levels of education; generally, there is evidence of differences in wages for men and women with the same level of education (Livanos and Nunez 2010). This paper is focused on analyzing whether these facts could affect the value of the gender wage gap in EU countries.…”

Section: Review Of the Literaturementioning

confidence: 99%

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ACTA VSFS

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A huge number of empirical literature has carried investigation on trade openness-income inequality nexus globally. However, there are areas of knowledge gap on the part of the impacts of FDI inflows on inequality to the Nigerian economy. As a result of this knowledge gap and growing concern for variations in methodologies and scope which makes the debate on nexus between trade openness, FDI and income inequality not beyond controversy. Hence, this study examines the nexus between trade openness, FDI and income inequality in Nigeria between 1981 and 2019 using ARDL methodology. Our findings show that shows that trade openness exerts a negative effect on income inequality in the short-run. This implies that rising trade openness leads to decline in inequality. Equally, the study finds that FDI is negatively related to income inequality. The findings are in tandem the theoretical prediction of Stolper-Samuelson's theorem in case of Asia that trade openness and FDI inflow impact income inequality. The findings on government expenditure also exerts a positive effect on inequality. Given that proxies for institutional and macroeconomic determinants demonstrate a diverse variety of indications and effects, this study suggests a policy stimulus aimed at enhancing economic and social structures while also stimulating FDI influx potential in order to raise household incomes.

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The effect of higher education on the gender wage gap

Cited by 10 publications

References 26 publications

Overeducation and the gender pay gap in Italy

Overeducation and the gender pay gap in Italy

Education and wage inequality before and during the fiscal crisis: A quantile regression analysis for Greece 2006–2016

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