Gender Pay Gap Patterns in Domestic and Foreign-Owned Firms

Iga Magda , Warsaw School of Economics
Katarzyna Salach, University of Warsaw

We investigate adjusted gender wage gaps in foreign and domestic-owned firms. We show that while standard estimates of adjusted gender wage gaps reveal they are much higher in size in the foreign-owned companies, these estimates cannot be trusted. The domestic-owned firms display considerably higher levels of gender segregation and the OLS estimates of the adjusted gender wage gaps in this sector are more likely to be biased. Using a matching and decomposition technique (Ñopo 2008) that allows to capture gender wage differentials over a common support we find that gender wage gaps in the domestic-owned firms are only slightly lower than those in foreign-owned companies. We also find that gender wage gaps are lower in foreign-owned firms established before the economic transition, as compared to those set up after 1990, whereas in domestic-owned firms the opposite is true. We provide explanations for these patterns.

See paper

 Presented in Session 9. Marriage, Family, Households, & Unions; Gender, Race, & Ethnicity