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Analysis the Components of the Gender Pay Gap in the UK: What are the Main Components of the Gender Pay Gap, and to What Extent do they Contribute to this Inequality? (2010)

Ref: econ0005

What is the size of the gender pay gap in the UK? What are the main components which contribute to this gap? There have been various changes in gender relations and labour market structure, all of which have affected the pay gap. Increase in women’s educational attainment, anti-discrimination legislation and changes in women’s attitudes towards work have all caused the gap to narrow in recent years. The Oaxaca decomposition of the gender pay gap distinguishes between components that attribute to gender differences in productivity related characteristics and a residual component which is normally recognised as discrimination. This study of data from the 2010 British labour survey shows there is a gender pay gap of approximately 14.8% of which much is attributed to uneven distribution of sexes in occupational and industrial sectors. However it is concluded that it is misleading to assume occupational and industrial sectors as productivity-related characteristics, nonetheless they are components which contribute to the overall gender pay gap.

  • 12,000 words – 60 pages in length
  • Excellent use of literature
  • Excellent use of economics and data analysis models: Oaxaca Decomposition, Multi Collinearity, Chow Test, Ramsey RESET, Jarque Bera and Hetroskedasticity
  • Well written throughout
  • Ideal for any Economics student

1. Introduction

2. Background and Stylised Facts

3. Theoretical Background
Supply-side factors
Demand-side factors
Occupational segregation

4. Literature Review
Human capital
Social reproduction
Monophony and Firm size
Compensating wage differentials and part-time work
Occupational segregation

5. Data and Findings
Sample selection issues

6. Variables and Hypotheses
Dependant variable
Explanatory variables
Labour market and industry
Occupational segregation
Household and Demographics
Female and Female interaction variables

7. Methodology
OLS-Regression and its limitations
Criticisms of the Oaxaca-Blinder decomposition

8. Econometric Results and Analysis
Regression Overview
Decomposition overview
Findings for individual variables

9. Conclusion



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