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Gender-Specific Occupational Segregation, Glass Ceiling Effects, and Earnings in Managerial Positions: Results of a Fixed Effects Model

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  • Anne Busch
  • Elke Holst
Abstract
The study analyses the gender pay gap in private-sector management positions in Germany based on data from the German Socio-Economic Panel Study (SOEP) for the years 2001-2008. It focuses in particular on gender segregation in the labor market, that is, on the unequal distribution of women and men across different occupations and on the effects of this inequality on earnings levels and gender wage differentials in management positions. Our paper is, to our knowledge, the first in Germany to use time-constant unobserved heterogeneity and gender-specific promotion probabilities to estimate wages and wage differentials for persons in managerial positions. The results of the fixed effects model show that working in a more "female" job, as opposed to a more "male" job, affects only women's wages negatively. This result remains stable after controlling for human capital endowments and other effects. Mechanisms of the devaluation of jobs not primarily held by men also negatively affect pay in management positions (evaluative discrimination) and are even more severe for women (allocative discrimination). However, the effect is not linear; the wage penalties for women occur only in "integrated" (more equally male/female) jobs as opposed to typically male jobs, and not in typically female jobs. The devaluation of occupations that are not primarily held by men becomes even more evident when promotion probabilities are taken into account. An Oaxaca/Blinder decomposition of the wage differential between men and women in management positions shows that the full model explains 65 percent of the gender pay gap. In other words: Thirty-five percent remain unexplained; this portion reflects, for example, time-varying social and cultural conditions, such as discriminatory policies and practices in the labor market.

Suggested Citation

  • Anne Busch & Elke Holst, 2011. "Gender-Specific Occupational Segregation, Glass Ceiling Effects, and Earnings in Managerial Positions: Results of a Fixed Effects Model," Discussion Papers of DIW Berlin 1101, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwwpp:dp1101
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    Cited by:

    1. Anne Busch & Elke Holst, 2012. "Occupational Sex Segregation and Management-Level Wages in Germany: What Role Does Firm Size Play?," Discussion Papers of DIW Berlin 1206, DIW Berlin, German Institute for Economic Research.
    2. Lang, Julia & Dauth, Christine, 2017. "Should the unemployed care for the elderly? The effect of subsidized occupational and further training in geriatric care," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168130, Verein für Socialpolitik / German Economic Association.
    3. Collischon Matthias, 2019. "Is There a Glass Ceiling over Germany?," German Economic Review, De Gruyter, vol. 20(4), pages 329-359, December.
    4. Khalid Maman Waziri, 2017. "Generalized Glass Ceilings in the United States – A Stochastic Metafrontier Approach," Working Papers halshs-01569834, HAL.
    5. Franz, Nele, 2011. "Geschlechtsspezifische Verdienstunterschiede und Diskriminierung am Arbeitsmarkt: Eine Untersuchung unter Berücksichtigung von Voll- und Teilzeitarbeit," CIW Discussion Papers 11/2011, University of Münster, Center for Interdisciplinary Economics (CIW).
    6. Hipp, Lena, 2020. "Do hiring practices penalize women and benefit men for having children? Experimental evidence from Germany," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 36(2), pages 250-264.
    7. Concetta Mendolicchio & Thomas Rhein, 2014. "The gender gap of returns on education across West European countries," International Journal of Manpower, Emerald Group Publishing Limited, vol. 35(3), pages 219-249, May.
    8. Hilke Brockmann & Anne-Maren Koch & Adele Diederich & Christofer Edling, 2018. "Why Managerial Women are Less Happy Than Managerial Men," Journal of Happiness Studies, Springer, vol. 19(3), pages 755-779, March.
    9. Susi Störmer, 2011. "Führt Attraktivität zum Erfolg? Zum Einfluss des Body-Maß-Index auf den Karriereerfolg," Schmalenbach Journal of Business Research, Springer, vol. 63(6), pages 609-631, September.
    10. Lott, Yvonne & Abendroth, Anja, 2019. "Reasons for not working from home in an ideal worker culture: Why women perceive more cultural barriers," WSI Working Papers 211, The Institute of Economic and Social Research (WSI), Hans Böckler Foundation.
    11. Sina Otten, 2020. "Gender-Specific Personality Traits and Their Effects on the Gender Wage Gap: A Correlated Random Effects Approach using SOEP Data," SOEPpapers on Multidisciplinary Panel Data Research 1078, DIW Berlin, The German Socio-Economic Panel (SOEP).
    12. Hipp, Lena, 2018. "Do hiring practices penalize women and benefit men for having children? Experimental evidence from Germany," SocArXiv 4a68p, Center for Open Science.
    13. Dauth, Christine & Lang, Julia, 2017. "Should the unemployed care for the elderly? : The effect of subsidized occupational and further training in elderly care," IAB-Discussion Paper 201713, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Biswajit Banerjee, 2014. "Occupational segregation and gender differentials in earnings in Macedonia," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-27, December.

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    More about this item

    Keywords

    Gender pay gap; managerial positions; gender segregation; glass-ceiling effects; Oaxaca/Blinder decomposition; fixed effects; selection bias;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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