published as 'Gender segregation and the wage gap in Portugal: An analysis at the establishment level' in: Journal of Economic Inequality, 2005, 3 (2), 145-168
This paper aims at quantifying the trend in worker segregation at the establishment level and
its impact on wages in Portugal over a fifteen year period. We concentrate on the gender
dimension, to answer the questions: have changes in recruitment policies at the
establishment level resulted in higher gender segregation in the labour market? What is the
impact of segregation on wages? Is that impact different for men and women? A large linked
employer-employee data set is used. Systematic and random components of segregation are
computed. We use standard wage decomposition techniques to evaluate the impact of the
composition of the labour force at the establishment level on wages. Results reveal a high
degree of systematic gender segregation. A higher proportion of females in the establishment
lowers females' wages while, on the contrary, it raises males' wages. Between mid-80s and
late-90s, the contribution of the gender composition of the workforce within the establishment
to the wage gap increased, though fluctuating within that period. The evidence gathered
lends support to the taste-based model of employer behaviour.
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