Working Paper: CEPR ID: DP6388
Authors: Martina Zweimüller; Doris Weichselbaumer; Rudolf Winter-Ebmer
Abstract: Two very different approaches are used to explore the relation between market orientation and gender wage differentials in international data. More market orientation might be related to gender wage gaps via its effects on competition in product and labour markets and the general absence of regulation in the economy. The first approach employs meta-analysis data and takes advantage of the fact that many studies already exist which use national data sources to the best possible extent. The second approach uses comparable micro data from the International Social Survey Programme (ISSP), which allows calculating internationally consistent gender wage residuals in the first place. By comparing these two very different methods of data collection we get a robust result relating higher levels of market orientation as proxied by the Economic Freedom Index with lower gender wage gaps.
Keywords: competition; gender wage gap; market orientation
JEL Codes: J16; J31; J71
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| competitive markets (D41) | reduced discrimination (J79) |
| market orientation (L10) | gender wage differentials (J31) |
| higher levels of market orientation (L19) | lower gender wage gaps (J79) |
| economic freedom index (E02) | gender wage residuals (J31) |
| market orientation (L10) | reduced gender wage differentials (J79) |