Wilfried-Guth- Stiftungsprofessur für Ordnungs- und Wettbewerbspolitik. Diskussionsbeiträge / Discussion Paper Series

Transcription

1 Wilfried-Guth- Stiftungsprofessur für Ordnungs- und Wettbewerbspolitik Diskussionsbeiträge / Discussion Paper Series No A Decomposition Analysis of the German Gender Pension Gap Carsten Hänisch, Jonas Klos November 2014 Albert-Ludwigs-Universität Freiburg Wilhelmstraße 1b D Freiburg

2 Fraunhofer-Institut für Angewandte Informationstechnik, Schloss Birlinghoven, Sankt Augustin, Germany ( Fraunhofer-Institut für Angewandte Informationstechnik, Schloss Birlinghoven, Sankt Augustin, Germany University of Freiburg, Department of Economics, Wilfried Guth Chair of Consti- tutional Political Economy and Competition Policy ( 1 The authors are especially thankful to Judith Flory for her contribution to an earlier study forming the basis of this work. (see Flory et al. (2013))

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4 2 There are further smaller differences compared to this work - Frommert and Strauß (2013) only discuss own pension claims from the first pillar of the German pension system 2

5 for younger West-German cohorts. Furthermore their specification contains information regarding employment times in full- and part-time, while this distinction is not available in our data

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7 3 4 3 see Jann (2008) for details on methodology 4 see, for example, Blau and Kahn (1996)

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9 7 7 More detailed information about the German pension system can be found, for ex- ample, in Boersch-Supan and Wilke (2004). Even though this work is not a very recent contribution and thus cannot cover the most recent developments, it still provides a very good outline of the pension system, its development and downsides.

10 8 Public service employees have the statutory pension insurance as their main source of old-age income. The occupational pension scheme is an addition. 8

11 Table 1

12 9 GP G ( \ 9 the treatment of quantiles is analogous

13 10 VerdiensteArbeitskosten/VerdienstunterschiedeMaennerFrauen/Tabellen/ GenderPayGap_EU.html?nn=

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15 Figure 1

16 11 11 There is, however, no consensus with respect to this result. For example, Arulam- palam et al. (2007) find an u-shaped pattern with an increasing wage gap for the higher quantiles of the income distribution.

17 Figure 2

18 12 Gap X M X F β X M β M β X F β β F X M X F β M β F β β β β M Gap X M X F β M X F β M β F 12 a comprehensive overview on the method can for example be found in Jann (2008)

19 13 Gap ν m ν c ν c ν f ν ν s x 13 In line with Firpo et al. (2009), we will stick to their terminology when discussing the decomposition of quantiles

20 ν ν m ν f ν c ν s ν x ω m T T T p X T, ω f T, ω c T p p p X i p p X i X i p T τ I Y τ RIF Y i, ν τ ν τ f Y ν τ I (.) τ f Y. E RIF Y, ν τ X Xβ τ E X E RIF Y, ν τ X

21 E X β τ β τ X 1 X 1 X 1 RIF Y, ν τ ν τ f Y ν τ τ X m βm τ β τ s f τ τ τ x X m X f β m R R τ

22 The status refers to the main type of occupational status during professional life. 15 see Franz (2011)

23 Table 2 Variable Average Endowment Men Average Endowment Women Differences Years of Employment: Self-Employed Years of Employment: Private Industry Years of Employment: Public Service Years of Employment: Civil Service noncontinuous employment-history Has Never Been Employed Worker Employee Civil Servant Self-Employed No Training Occupational Training Master Craftsperson, Polytechnics University Miscellaneous Training Married Widowed Divorced Single Children Region

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25 Table 3 Variable Contribution to explained Part Contribution to unexplained Part Years of Employment: Self-Employed Years of Employment: Private Industry Years of Employment: Public Service Years of Employment: Civil Service noncontinuous employment-history Has Never Been Employed Worker Employee Civil Servant Self-Employed No Training Occupational Training Master Craftsperson, Polytechnics University Miscellaneous Training Married Widowed Divorced Single Children Region Constant see, for example, Mincer (1974)

26 17 see Bundesamt (2012) 17

27 see Bildungsberichterstattung (2012) 19 Negative sign of the gap contributions (gender specific coefficients are shown in Ap- pendix B).

28 20 20 Results of quantile decompositions at the 10 %, 25 %, 50 %, 75 % and 90 % quantiles are shown in appendix C

29 Figure 3

30 Figure 4

31 Figure 5

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34 see, for example, Büchel and Spieß (2002) 22 see, among others, Mincer (1974)

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40 β θ β M θ β F, θ, β M β F for further details and potential methodological problems see Jann (2008)

41 Figure 6 θ Figure 7 β

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43 Table 4

44 p < 0.05, p < 0.01, p < 0.001

45 Table 5 p < 0.05, p < 0.01, p < 0.001

46 Table 6 p < 0.05, p < 0.01, p < 0.001

47 Table 7

48 p < 0.05, p < 0.01, p < 0.001

49 Table 8 p < 0.05, p < 0.01, p < 0.001

50 Table 9 p < 0.05, p < 0.01, p < 0.001

51 Table 10

52 p < 0.05, p < 0.01, p < 0.001

53 Table 11 p < 0.05, p < 0.01, p < 0.001

54 Table 12 p < 0.05, p < 0.01, p < 0.001

55 Table 13

56 p < 0.05, p < 0.01, p < 0.001

57 Table 14 p < 0.05, p < 0.01, p < 0.001

58 Table 15 p < 0.05, p < 0.01, p < 0.001

59 Table 16

60 p < 0.05, p < 0.01, p < 0.001

61 Table 17 p < 0.05, p < 0.01, p < 0.001

62 Table 18 p < 0.05, p < 0.01, p < 0.001

63 Table 19

64 p < 0.05, p < 0.01, p < 0.001

65 Table 20 p < 0.05, p < 0.01, p < 0.001

66 Table 21 p < 0.05, p < 0.01, p < 0.001

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