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A distribution-sensitive examination of the gender wage gap in Germany

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Abstract

This paper provides a new examination of the gender pay gap for Germany based on a family of distribution-sensitive indicators. Wage distributions for men and women do not only differ by a fixed constant; differences are more complex. We show that focusing on the bottom of the wage distribution reveals a larger gender gap. Our distribution-sensitive analysis can also be used to study whether the statistical disadvantage of women in average pay might be ‘offset’ by lower inequality. Over a broad range of plausible preferences over inequality, we show however that ‘inequality-adjusted’ estimates of the gap can be up to three times higher than standard inequality-neutral measures in Eastern Germany and up to fifty percent higher in Western Germany. Using preference parameters elicited from a hypothetical risky investment question in our sample, inequality-adjusted gender gap measures turn out to be close to those upper bounds.

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Authors and Affiliations

  1. Institut for East and Southeast European Studies, Landshuter Str. 4, 93047, Regensburg, Germany

    Ekaterina Selezneva

  2. Luxembourg Institute of Socio-Economic Research, 11, Porte des Sciences L-4366, Esch-sur-Alzette, Luxembourg

    Philippe Van Kerm

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  1. Ekaterina Selezneva
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  2. Philippe Van Kerm
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Correspondence to Philippe Van Kerm.

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Selezneva, E., Van Kerm, P. A distribution-sensitive examination of the gender wage gap in Germany. J Econ Inequal 14, 21–40 (2016). https://doi.org/10.1007/s10888-016-9320-z

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  • DOI: https://doi.org/10.1007/s10888-016-9320-z

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