Do women really face wage discrimination on the labour market? An analysis using intra-household specialization

Abstract

This study aims to estimate the gender pay gap, cleansed at least partially of the effect of intrahousehold specialization on productivity. The estimate is based on EU-SILC data for 19 member countries of the European Union. We use an estimate of the average treatment effect on the treated, supplemented by a matching procedure to estimate the unexplained part of the gender pay gap and use a subsample of employees earning more than their partners, thus minimizing the impact of childand family-care on the gender pay gap. We conclude that the unexplained gender pay gap amounts approximately 10 percent working to the disadvantage of women. If we assume that the dominant role in family- and child-care is taken up by the partner earnings a lower wage, then this difference could neither be explained by differences in the observed personal and company characteristics nor by the dominant role of women in care for the household and children and could actually be due to wage discrimination against women.