Economic Growth, Sectoral Segregation and Gender Wage Gaps: A Macroeconomic Inquiry of Gender Pay Differences

• In Event: Poster Session: International Political Economy 2 & APCG (African Politics)
  In Poster Session: Poster Session: International Political Economy 2

Abstract

Gender wage gaps are an ongoing issue in capitalist economies. Particularly, sectoral segregation contributes to gender wage gaps. A devaluation of female jobs cannot fully explain wage differentials across sectors. Also, the national macroeconomic setting contributes to sectoral wage gaps in male- and female-dominated sectors. Yet, the macroeconomic setting has not been considered when studying gender wage gaps.
Growth model theory emphasizes the role of aggregate demand, in particular, the composition of exports and debt contributing to economic growth. Germany is classified as an export-led growth model, the US as debt-led and Sweden as balanced. Each growth model comes along with specific key sectors that benefit from high wage growth because of direct contribution to productivity growth. Men are overrepresented in key sectors, for instance in the German manufacturing sector or the US FIRE-sector, and benefit from real wage growth. Depending on further growth model features, particularly price sensitivity the size of sectoral segregation varies. Since exports are highly price sensitive in Germany, it is hypothesized that in Germany, occupational segregation contributes more to gender wage gaps compared to the US and Sweden.
This study combines a comparative case study design with quantitative methods focussing on Germany, Sweden, and the US based on LIS- and macro-economic data. This study explains the effect of gender on wage mediated by sectoral segregation and moderated by the national growth model. This study contributes empirically to revealing macroeconomic drivers of gender wage gaps and theoretically by introducing gender to the growth model framework.

Author

• Pauline Kohlhase, Max-Planck-Institute for the Study of Societies