Women in the Pipeline : A Dynamic Decomposition of Firm Pay Gaps
This paper proposes a new decomposition method to understand how gender pay gaps arise within firms. The method accounts for pipeline effects, nonstationary environments, and dynamic interactions between pay gap components. This paper assembles a n...
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| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/922611592934616383/Women-in-the-Pipeline-A-Dynamic-Decomposition-of-Firm-Pay-Gaps http://hdl.handle.net/10986/33991 |
| Summary: | This paper proposes a new decomposition
method to understand how gender pay gaps arise within firms.
The method accounts for pipeline effects, nonstationary
environments, and dynamic interactions between pay gap
components. This paper assembles a new data set covering all
employees at the World Bank Group between 1987 and 2015 and
shows that historical differences in the positions for which
men and women were hired account for 77 percent of
today's average salary difference, dwarfing the roles
of entry salaries, salary growth, or retention. Forward
simulations show that 20 percent of the total gap can be
assigned to pipeline effects that would resolve mechanically
with time. |
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