Magnitude and Impact Factors of the Gender Pay Gap in EU Countries

Commissioner: Fondazione Giacomo Brodolini (FGB) on behalf of the European Commission Unit JUST-D2
Duration: February 2015 - January 2016

Press Release of 7 March, 2016 (EN)
Press Release of 7 March, 2016 (DE)

Download Report
Download Country Fiches

Brief description:
The project consists of three modules. As a first module, we calculate and decompose the unadjusted pay gap for the EU-28. The module is based on micro data of the Structure of Earnings Survey (SES). However, the SES data have some important limitations. Our previous results for Germany show that some additional factors which are not stored in the SES data contribute to the gap. These are (amongst others): nationality/country of birth, and the partner and household context (e.g. household income, household goods for own consumption as a reservation wage indicator).

Therefore, we supplement the SES calculations by those based on the EU-SILC micro data (second module). To bridge the SES and EU-SILC results, we first re-estimate the gap based on a set of covariates that resembles the set used in the SES estimations. In a second step, the list of covariates is enlarged by the EU-SILC specific and potentially wage-relevant demography, partner and household variables. In a third step, we build a skill mismatch variable, as own results with German data show that the returns to overeducation are lower than those to adequate education. Corresponding to our German analyses, we focus on vertical mismatch (inadequacy of formal education), using the Realized Matches approach.

The third module addresses the question of overeducation once again and focuses on graduates. The aim is here to identify the interplay between overeducation and field of highest level of education or training. This module is based on LFS micro data. As previous research shows, analyzing the statistical relationship between field of highest level of education or training and overeducation can valuably contribute to the gender pay gap decomposition research. This is the more so as we strive to extend the analysis to the medium educated. We wrap up our analyses in a concluding module named “Integration of results, report finalization”, where we sum up and discuss the various results and mutual interdependencies of our analyses.