Gender disparities in wage returns to human capital components: how different are European labour markets?

The paper investigates the gender wage gap in relation to the multi-dimensional human capital measure, asking which human capital components are most valued in the European labour markets. Relying on the Programme of International Assessment of Adult Competencies (PIAAC) data for seventeen European...

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Main Authors: Maryna Tverdostup, Tiiu Paas
Format: Article
Language:English
Published: Taylor & Francis Group 2022-01-01
Series:Baltic Journal of Economics
Subjects:
Online Access:http://dx.doi.org/10.1080/1406099X.2022.2033418
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author Maryna Tverdostup
Tiiu Paas
author_facet Maryna Tverdostup
Tiiu Paas
author_sort Maryna Tverdostup
collection DOAJ
description The paper investigates the gender wage gap in relation to the multi-dimensional human capital measure, asking which human capital components are most valued in the European labour markets. Relying on the Programme of International Assessment of Adult Competencies (PIAAC) data for seventeen European countries and applying Gelbach () decomposition, we document remarkable cross-country disparities in the returns to different human capital components. The only dimension that consistently and significantly decreases gender wage disparities in all countries is work experience related to a currently occupied position. Numeracy cognitive ability is another strong predictors of the gender wage disparity, while job-specific cognitive and non-cognitive skills reveal weaker than expected association with the gender wage gap. Unlike the studies stressing the decreasing importance of human capital in the gender wage gap assessment, we argue that a narrow definition of human capital may undermine the actual effect of the latter.
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spelling doaj.art-35f5aa90ce914ca2aa698a5a9d7da4f02022-12-21T23:48:37ZengTaylor & Francis GroupBaltic Journal of Economics1406-099X2334-43852022-01-01221284810.1080/1406099X.2022.20334182033418Gender disparities in wage returns to human capital components: how different are European labour markets?Maryna Tverdostup0Tiiu Paas1The Vienna Institute for International Economic Studies (wiiw)School of Economics and Business Administration, University of TartuThe paper investigates the gender wage gap in relation to the multi-dimensional human capital measure, asking which human capital components are most valued in the European labour markets. Relying on the Programme of International Assessment of Adult Competencies (PIAAC) data for seventeen European countries and applying Gelbach () decomposition, we document remarkable cross-country disparities in the returns to different human capital components. The only dimension that consistently and significantly decreases gender wage disparities in all countries is work experience related to a currently occupied position. Numeracy cognitive ability is another strong predictors of the gender wage disparity, while job-specific cognitive and non-cognitive skills reveal weaker than expected association with the gender wage gap. Unlike the studies stressing the decreasing importance of human capital in the gender wage gap assessment, we argue that a narrow definition of human capital may undermine the actual effect of the latter.http://dx.doi.org/10.1080/1406099X.2022.2033418decompositioneuropean labour marketsgender wage gaphuman capital
spellingShingle Maryna Tverdostup
Tiiu Paas
Gender disparities in wage returns to human capital components: how different are European labour markets?
Baltic Journal of Economics
decomposition
european labour markets
gender wage gap
human capital
title Gender disparities in wage returns to human capital components: how different are European labour markets?
title_full Gender disparities in wage returns to human capital components: how different are European labour markets?
title_fullStr Gender disparities in wage returns to human capital components: how different are European labour markets?
title_full_unstemmed Gender disparities in wage returns to human capital components: how different are European labour markets?
title_short Gender disparities in wage returns to human capital components: how different are European labour markets?
title_sort gender disparities in wage returns to human capital components how different are european labour markets
topic decomposition
european labour markets
gender wage gap
human capital
url http://dx.doi.org/10.1080/1406099X.2022.2033418
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