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Gender and labour characteristics on income inequality

Beatriz Larraz Iribas 

University of Castilla-La Mancha, Cobertizo de S. Pedro Martir, S/N, Toledo 45071, Spain

Abstract

Identification of the possible origins of gender pay gap is a widely discussed issue in recent years, being it defined as the gap between men and women hourly wage, expressed as a percentage of men hourly wage. Nevertheless, in addition to this grave reality, on gender research the attention should also be directed to the gender income inequality, understood as the inequality among levels of income. It is important to identify those activity sectors, occupations or workers or firms’ characteristics where the wage sharing is less equitable among the set of employees, among women and men as different sets, or even among men and women with each other. And it is also important to find to what extent the inequality is caused by gender inequality (between subgroups) or by inequality among men or women themselves (within subgroups).  

Gini ratio is the most commonly used income inequality tool, being the E-Index its adaptation when dealing with non-unitary frequencies. The theoretical decomposition of such indexes allows identifying the contribution of within men and women inequality and of gender inequality to the total index. Moreover, the latter can also be decomposed in the net extended inequality between subpopulations and the intensity of transvariation between them.

In particular, this paper deals with the income inequality decomposition in a Spanish region, Castile-La Mancha, using the micro-data available in the Spanish Structure of Earnings Survey carried out by the Spanish Statistical Institute in 2010. This analysis identifies those subgroups with similar labour characteristics and grave general and gender income inequality. Results show a slightly lower inequality level in the region compared with the whole nation, Spain, with the within subgroups and gender inequality indexes being responsible in equal parts for the total inequality. Women present a greater degree of inequality among them than men do and gender inequality is higher in the region than in Spain.

 

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Related papers

Presentation: Poster at Current Economic and Social Topics CEST2013, Symposium on Financial Market Analysis, by Beatriz Larraz Iribas
See On-line Journal of Current Economic and Social Topics CEST2013

Submitted: 2013-04-09 11:40
Revised:   2013-04-09 11:42