Glass Ceiling Effect and Wages - The Gender Pay Gap in Management Positions in Germany
German Socio-Economic Panel Study (GSOEP) DIW Berlin, University Flensburg Germany, http://www.diw.de/english/the_institute/staff/27338.html?uid=eholst
German Socio-Economic Panel Study (GSOEP) DIW Berlin, Berlin Graduate School of Social Sciences (BGSS) Germany, http://www.bgss.hu-berlin.de/docpro/promovierende/anne-busch
Although there exist a variety of studies on the gender pay gap, only few relate to management positions. The present study attempts to fill this gap. Managers in private companies in Germany are a highly selective group of women and men, who differ only marginally in their human capital endowments. The Oaxaca-Blinder decomposition shows that the gender pay gap in the gross monthly salary can hardly be explained with the human capital approach. Adding variables on gender-specific labour market segregation and dimensions of the household and family to the model allows more than two-thirds of the gender pay gap to be explained. However, taking selection effects into a management position into account (Heckman correction), the portion explained decreases to only one-third. This reveals the real extent to which women are disadvantaged on the labor market. In addition, we observe not only that the wages in typical women´s jobs are lower than in typical men´s jobs but also that women are paid less than men in typical women´s jobs (allocative discrimination). The two-thirds of the gender pay gap that remain unexplained represent the unobserved heterogeneity. This includes, for example, general societal and cultural conditions as well as structures and practices on the labour market and in companies that subject women to pay discrimination and hinder them from breaking the glass ceiling.