Gender wage differentials and occupational distribution

Abstract

The study analyzes the role of occupational distribution in explaining the male-female wage gap in the Portuguese economy. The objective is to investigate to what extent gender wage disparities can be explained by occupational segregation. Relying on data from the personnel records for the period 1986-2004, this study uses the Brown, Moon, and Zoloth (1989) wage differential decomposition method to conduct the empirical analysis. The main findings reveal that occupational gender segregation is not a major contributor to the male-female wage gap and that within occupational wage effects play a prominent role in determining the overall differential. Additionally, the results indicate that a substantial portion of wage differentials within occupations potentially stems from wage discrimination.