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As of 2016, women in the U.S. are still making 80 cents on the dollar relative to men, and even with controls for other factors such as education, experience, and hours worked, the pay disparity is still around eight percent. The equity, efficiency wage, and Cognitive Evaluation Theories, suggest that a closed gender wage gap would be more beneficial to society. This paper uses these theories to investigate the relationship between productivity and pay disparity by using an ordinary least squares regression model to test the effects of the gender wage ratio on labor productivity while controlling for some human capital characteristics. Additionally, this paper furthers the hypotheses that the wage gap is detrimental to labor productivity and worker well-being by proposing a study in which a simulated wage gap is predicted to negatively affect worker satisfaction, motivation, and productivity. Findings and implications for further research are discussed.

Doctor of Philosophy / Economics / Yang M. Chang / This dissertation consists of three essays in the field of household and family economics. Specifically, the research focuses on the optimal taxation and household behavior, gender inequality in the labor market during economics transition, and fertility choices and female labor supply. Chapter 1 explores the welfare implications of an optimal tax-transfer schedule to dual-earner couples. A non-cooperative model is used to examine labor supply decisions of married couples to both individual- and joint-based taxation, and the results suggest that the impact of income taxation on family labor supply is largely dependent on spouses' relative wage income. I also investigate the welfare effect of a governmental imposed re-distributive program on both spouses, the simulation results of moving from individual to joint taxation improves both spouses' well-beings and the welfare gain is higher for couples when income gap between the husband and the wife is larger. Chapter 2 empirically examines the impact of privatization reform on gender wage gap in urban labor market based on a comprehensive nationwide survey, the Chinese Household Income Projects (CHIP). We observe, between 1995 and 2007, the gender wage gap rises, and the progress of privatization increases women’s productivity. The results of decomposition suggest that the increase in gender discrimination, which is associated with the rapid growth of non-state sector, contributes to widening gender wage gap. Although privatization increase gender segregation in occupational attainments, it is less obvious that segregation can account for the gender wage gap. In Chapter 3, using the 1979 cohort of the National Longitudinal Survey of Youth (NLSY79), we find mothers earn less on average even after controlling for other wage determinants. The wage penalty associated with motherhood is insignificant in the early career, and arises partly due to mothers accumulating less work experience. As a result, late mothers experience stronger (weaker) returns to work experience before (after) their transition to motherhood. The differentials in returns to work experience are robust to controlling for occupational skill requirements and time spent out of employment.

In this study, I compare men and women with and without children to analyze the effect of children on wages and earnings. By comparing the gender wage gap to the family gap for men and women respectively, I find that there is still a persistent, yet rather small, family gap for women. The constant family gap for women supports the notion that a greater fraction of the gender wage gap can be explained by effects of having children now than previously. When using yearly earnings instead of hourly wages, the gender wage gap increases whereas the family gap for women decreases. This implies that although there are several policies with the aim of reducing gender wage differences and creating possibilities for women to combine work and family, there are still concrete effects that arise from taking the responsibility for children. Because the effect of having children is seemingly constant over time for women, the results from this study imply that specific policies are needed to prevent and battle the difference in labor market outcomes that arise because of the differing effects from caring for children.

<p>Using mainly quantile regressions, this paper evaluates the gender wage gap throughout the conditional wage distribution in Sweden. The gender wage is found to increase at the upper tail of the wage distribution, indicating an enforcement of the glass ceiling effect recorded in earlier studies.</p><p>The results also indicate that the earlier noted trend of diminishing wage differences at the bottom of the wage distribution now is turning. The increase of overall wage inequalities coincides with a general increase in wage dispersion among high-income and low-income individuals. It is also noted that there are substantial differences in returns to productivity characteristics between the public and the private sectors, and that both the highest and the lowest unexplained gender wage gap is found in the public sector.</p>

In the first chapter of this thesis, we investigate the impact of human capital and wage structure on the gender pay in a panel of European countries using a newly available and appropriate database for cross-country comparisons and a comparable methodology for each country. Our first question is : What role do certain individual characteristics and choices of working men and women play in shaping the cross-country differences in the gender pay gap? What is the exact size of the gender pay gap using the “more appropriate” database available for our purpose? Giving that there are mainly only two harmonized data-sets for comparing gender pay gap throughout Europe: the European Community Household Panel (ECHP) and the European Structure of Earning Survey (ESES). Each database having its shortages: the main weakness of the ECHP is the lack of perfect reliability of the data in general and of wages in particular. However the main advantage of this database is the panel-data dimension and the information on both households and individuals. The data of the ESES is, on the contrary, of a very high standard but it only covers the private sector and has a cross-sectional dimension. Furthermore only few countries are currently available : Denmark, Belgium, Spain, Ireland and Italy. We use the European Structure of Earning Survey (ESES) to analyse international differences in gender pay gaps in the private sector based on a sample of five European economies: Belgium, Denmark, Ireland, Italy and Spain. Using different methods, we examine how wage structures, differences in the distribution of measured characteristics and occupational segregation contribute to and explain the pattern of international differences. Furthermore, we take account of the fact that indirect discrimination may influence female occupational distributions. We find these latter factors to have a significant impact on gender wage differentials. However, the magnitude of their effect varies across countries. In the second chapter, we analyse the persistence of the gender pay differentials over time in Europe and better test the productivity hypothesis by taking into account unobserved heterogeneity. Our second question is : What is the evolution of the pay differential between men and women over a period of time in Europe? And what is the impact of unobserved heterogeneity? The researcher here provides evidence on the effects of unobserved individual heterogeneity on estimated gender pay differentials. Using the European Community Household Panel (ECHP), we present a cross-country comparison of the evolution of unadjusted and adjusted gender pay gaps using both cross-section and panel-data estimation techniques. The analysed countries differ greatly with respect to labour market legislation, bargaining practices structure of earnings and female employment rates. On adjusting for unobserved heterogeneity, we find a narrowed male-female pay differential, as well as significantly different rates of return on individual characteristics. In particularly, the adjusted wage differential decreases by 7 per cent in Belgium, 14 per cent in Ireland, between 20-30 per cent Germany, Italy, the Netherlands and Spain and of 41 per cent and 54 per cent in the UK and in Denmark respectively. In the third chapter, we investigate causes of the gender pay gap beyond the gender differences in observed and unobserved productive characteristics or simply the sex. Explanations of the gender pay gap may be the penalty women face for having children. Obviously, the motherhood wage penalty is relevant to larger issues of gender inequality given that most women are mothers and that childrearing remains a women’s affair. Thus, any penalty associated with motherhood but not with fatherhood affects many women and as such contributes to gender inequalities as the gender pay gap. Furthermore, the motherhood wage effect may be different along the wage distribution as women with different earnings may not be equal in recognising opportunities to reconcile their mother’s and earner’s role. This brings us to our third question. Our third question is : What is the wage effect for mothers of young children in the household? And does it vary along the wage distribution of women? This chapter provides more insight into the effect of the presence of young children on women’s wages. We use individual data from the ECHP (1996-2001) and both a generalised linear model (GLM) and quantile regression (QR) techniques to estimate the wage penalty/bonus associated with the presence of children under the age of sixteen for mothers in ten EU Member States. We also correct for potential selection bias using the Heckman (1979) correction term in the GLM (at the mean) and a selectivity correction term in the quantile regressions. To distinguish between mothers according to their age at the time of their first birth, wage estimations are carried out, separately, for mothers who had their first child before the age of 25 (‘young mothers’) and mothers who had their first child after the age of 25 (‘old mothers’). Our results suggest that on average young mothers earn less than non-mothers while old mothers obtain a gross wage bonus in all countries. These wage differentials are mainly due to differences in human capital, occupational segregation and, to a lesser extent, sectoral segregation between mothers and non-mothers. This overall impact of labour market segregation, suggests a “crowding” explanation of the family pay gap – pay differential between mothers and non-mothers. Nevertheless, the fact that we still find significant family pay gaps in some countries after we control for all variables of our model suggests that we cannot reject the “taste-based” explanation of the family gap in these countries. Our analysis of the impact of family policies on the family pay gap across countries has shown that parental leave and childcare policies tend to decrease the pay differential between non-mothers and mothers. Cash and tax benefits, on the contrary, tend to widen this pay differential. Sample selection also affects the level of the mother pay gap at the mean and throughout the wage distribution in most countries. Furthermore, we find that in most countries inter-quantile differences in pay between mothers and non-mothers are mainly due to differences in human-capital. Differences in their occupational and sectoral segregation further shape these wage differentials along the wage distribution in the UK, Germany and Portugal in our sample of young mothers and in Spain in the sample of old mothers. In the fourth chapter, we analyse the combined effect of motherhood and the family status on women’s wage. Our fourth question is : Is there a lone motherhood pay gap in Europe? And does it vary along the wage distribution of mothers? Substantial research has been devoted to the analysis of poverty and income gaps between households of different types. The effects of family status on wages have been studied to a lesser extent. In this chapter, we present a selectivity corrected quantile regression model for the lone motherhood pay gap – the differential in hourly wage between lone mothers and those with partners. We used harmonized data from the European Community Household Panel and present results for a panel of European countries. We found evidence of lone motherhood penalties and bonuses. In our analysis, most countries presented higher wage disparities at the top of the wage distribution rather than at the bottom or at the mean. Our results suggest that cross-country differences in the lone motherhood pay gap are mainly due to differences in observed and unobserved characteristics between partnered mothers and lone mothers, differences in sample selection and presence of young children in the household. We also investigated other explanations for these differences such as the availability and level of childcare arrangements, the provision of gender-balanced leave and the level of child benefits and tax incentives. As expected, we have found significant positive relationship between the pay gap between lone and partnered mothers and the childcare, take-up and cash and tax benefits policies. Therefore improving these family policies would reduce the raw pay gap observed.

Using mainly quantile regressions, this paper evaluates the gender wage gap throughout the conditional wage distribution in Sweden. The gender wage is found to increase at the upper tail of the wage distribution, indicating an enforcement of the glass ceiling effect recorded in earlier studies. The results also indicate that the earlier noted trend of diminishing wage differences at the bottom of the wage distribution now is turning. The increase of overall wage inequalities coincides with a general increase in wage dispersion among high-income and low-income individuals. It is also noted that there are substantial differences in returns to productivity characteristics between the public and the private sectors, and that both the highest and the lowest unexplained gender wage gap is found in the public sector.

The gender wage gap is accounted for to a substantial degree by the sex composition of occupations. The present thesis examines the mechanisms that produce this pattern. In particular, the theory of devaluation, currently the most widely accepted sociological explanation, is tested. The empirical findings, reported in three self-contained essays, question this line of explanation. All results are based on Swedish data: the Level of Living surveys (LNU; essays I and II) and administrative labour market registers (essay III). In Essay I the association between occupational prestige and occupational sex composition is examined. The association is non-linear, with gender mixed occupations having the highest prestige. Further, care work does not have lower prestige than other kinds of work. These results are inconsistent with expectations derived from devaluation theory. The analysis also shows that the wage returns to occupational prestige are lower for women than for men. Essay II examines why women receive relatively low returns to prestige. Family related factors are shown to be crucial. The gender difference in pay-off to prestige is thus marked among married/cohabiting employees with children but insignificant among singles as well as among childless married/cohabiting women and men. The gender wage gap in high-prestige occupations is largely due to differences between women and men in work characteristics difficult to reconcile with family duties. In essay III the functional form of the relation between wages and occupational sex composition is investigated. In the cross-section gender mixed occupations have the highest wages. Panel data tend to confirm this pattern: mobility from strongly male or female dominated occupations to more gender mixed occupations is associated with relatively high rates of wage growth. Further, there is a wage premium for care work but a wage penalty for other service work. These findings do not support devaluation theory. / <p>At the time of the doctoral defense, the following papers were unpublished and had a status as follows: Paper 2: Manuscript. 3: Accepted.</p>

This dissertation consists of three essays in applied microeconomics. These essays investigate different aspects of the impact of technology on labor market outcomes and firm strategy. The first essay, co-authored with Ronald L. Oaxaca, is in the area of labor economics and it investigates the relation between non-neutral technological change and the gender gap in wages. This essay is the first to address the issue of the recent narrowing of the gender wage gap in the context of technological change by using a novel approach to separately estimate the effects of technological change and discrimination on the gender wage gap. Using a constant elasticity of substitution production function and Current Population Survey data on employment and wages by industry and occupation, the results show that changes in non-neutral technological change explain between 5% and 9% of the narrowing of the wage gap between 1979 and 2001. The latter two essays span topics across applied industrial organization, firm strategy and labor economics. The second component of my dissertation investigates the relation between technological knowledge diffusion through the labor mobility of scientists and the organization of R&amp;D activities by innovative firms. Using a labor mobility measure from the Current Population Survey March Supplements as a measure for inter-firm technology spillovers and a panel of R&amp;D alliance data for 18 U.S. industries between 1989 and 1999, a Poisson estimation shows that firms facing a 10% increase in the labor mobility of scientists have a 5% increase in the annual number of R&amp;D collaborations. The third essay is an empirical analysis of the impact of knowledge dissemination generated by the labor mobility of scientists and engineers on a measure of the pace of innovation. Using an unbalanced panel of firms containing patent data matched with firm data across eight innovative industries, from 1989 to 1998, along with a measure of the labor mobility of scientists and engineers, this essay provides evidence that firms in industries exposed to levels of labor mobility of scientists and engineers that differ by 1%, have an expected time lag between sequential generations of technologies that differs by 0.56 years.

This dissertation examines the effects of career interruptions on workers’ wages. In chapter four I examine whether controlling for the type of interruption differently affects men’s and women’s wages and therefore can be used to explain the remaining gender wage differences. The increased participation of married women in the labor force has increased their wages from just 30% of men’s wages in 1890 to nearly 80% as of 2001. Thus, although the gender wage gap has narrowed over time, it has yet to be eliminated. One argument for the persistence of the gender wage gap is that previously researchers have used poor measures of experience to estimate men’s and women’s wages. Although previous studies have made strides in measuring experience, including controls for the timing of work experience, the gender wage gap persists. I extend the wage-gap literature by including controls for the types of interruptions men and women encounter. Because they typically experience different types of interruptions, I examine whether the varying types affect wages differently. I control for the types of interruptions and find similar effects for men’s and women’s wages. My study shows that types of job interruptions do not explain the remaining wage differentials. The fifth chapter extends from the fourth chapter by including controls for all periods of unpaid leave from work. I examine whether wage differences exist between workers who return to their current employer post-interruption versus those who change employers post-interruption. I find differences in the wage effects from different types of unpaid leave for men and women. Chapter six extends from previous chapters by including controls for all periods of paid leave from work in addition to unpaid leaves from work. I examine whether depreciation effects occur when women spend time out of work but receive compensation through paid maternity leaves. I find no evidence that time out of work because of paid maternity leaves depreciates skills.