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Is the Rule of Law Significant for Explanation of Differences in the Gender Pay Gap?
[journal article]
Abstract Using data from European Union Statistics on Income and Living Conditions, the study examines the causes of variation in the unexplained gender pay gap among 25 European countries and considers the effect of the legal environment on these. We employ the Oaxaca-Blinder decomposition to estimate the u... view more
Using data from European Union Statistics on Income and Living Conditions, the study examines the causes of variation in the unexplained gender pay gap among 25 European countries and considers the effect of the legal environment on these. We employ the Oaxaca-Blinder decomposition to estimate the unexplained part of the gender pay gap. To assess the impact of the rule of law on unexplained gender wage differences, we apply a linear regression model, where the estimated unexplained gender pay gap is used as a dependent variable and selected rule of law indicators (specifically the Worldwide Governance Indicators Rule of Law and the Legal System & Property Rights Index) as explanatory variables. Controlling for other institutions affecting gender wage differences (specifically labour market regulation, work-family reconciliation policy and male wage dispersion), we suggest that differences in the quality of legislation and law enforcement across European countries may partly account for the variation in the unexplained gender pay gap. A very progressive improvement in rule of law indices (from the worst to the best among the 25 European countries examined) leads to a decrease in the unexplained gender pay gap by 4.5-5 percentage points.... view less
Keywords
wage difference; gender-specific factors; constitutional state; labor market policy; family policy; wage policy; legislation; Europe
Classification
Income Policy, Property Policy, Wage Policy
Women's Studies, Feminist Studies, Gender Studies
Free Keywords
discrimination; gender pay gap; gender; rule of law; legislative quality; law enforcement; European Union Statistics on Income and Living Condition (EU-SILC) 2011, 2012 and 2013
Document language
English
Publication Year
2018
Page/Pages
p. 704-722
Journal
Prague Economic Papers, 27 (2018) 6
DOI
https://doi.org/10.18267/j.pep.684
ISSN
2336-730X
Status
Published Version; reviewed
Licence
Creative Commons - Attribution-Noncommercial-No Derivative Works 4.0