Time For Men To Catch Up On Women?: A Study of The Swedish Gender Wage Gap 1973-2012
Time For Men To Catch Up On Women?: A Study of The Swedish Gender Wage Gap 1973-2012
Time For Men To Catch Up On Women?: A Study of The Swedish Gender Wage Gap 1973-2012
9
um
fem
+
(4) ln(gwg) =
0
+
1
empQ +
2
studQ +
3
time +
4
unemp
tot
+
5
vac +
6
growth +
7
cent +
8
um
fem
+
9
TFR +
10
ageW +
The models are estimated for the period 1973-2012.
A slightly modified version of model (4) is estimated for a shorter period: 1985-2012. In this
model the two catch-up variables in box I are excluded. Women lagging behind men in
employment are not considered an issue after 1985
33
and student quota will be replaced by
female education quota (eduQ) i.e. female ratio of high educated in the population. A new
variable, productivity (prod), is also included measured here as production per hour. The
expected effect of more women in higher education is positive i.e. it will contribute to a
smaller gender pay gap. The effect of rising productivity ought to be positive but this may be
in general terms, its effect on the gender wage gap may be more problematic. Rising
31
Parental insurance was introduced in 1974 replacing the (small) economic support directed to mothers only
when having a baby. The fathers are now also included in the insurance.
32
In this last group (iv) only those in primary municipalities are included. Employees in the secondary
municipalities (landstingen) are not included i.e. medical doctors, nurses etc.
33
This might be an over-simplification because more women than men are still working on a part-time basis
and can therefore be regarded as lagging behind men.
20
productivity is expected to be transformed into higher wages, but whether this will make the
gender gap smaller or not is an open question.
The empirical specification for the period 1985-2012 is:
(5) ln(gwg)=
0
+
1
eduQ +
2
time +
3
unemp
tot
+
4
vac +
5
prod +
6
growth +
7
cent
+
8
fert +
9
age +
Data are essentially from Statistics Sweden and the SPSS regression analysis package has
been used for the analysis. The results are presented in the section below.
5 Results
The gender wage gap measured as an average gap for the whole labor market is often
criticized. The main argument is that no consideration is taken to mens and womens
different characteristics and qualifications. Without denying these important aspects the crude
measure used here may still be useful, provided that the evolution of the gender gap is of
interest. However, as a way to mitigate the critics I do not use the average for the whole labor
market but the average for the four dominate labor groups. As the wage gap varies a lot
between them, already shown in the figures above, such a separation seems meaningful. The
purpose of this study was threefold: (i) study the impact of women catching-up on men, (ii)
find out the impact other factors may have exerted on the gender wage gap and lastly (iii) get
an indication on what the next step must be in order to further reduce the gender gap.
The parameter estimates in the tables below are only presented by their signs since the main
interest is concentrated on whether the variables have contributed to decrease or increase the
gap. This makes the interpretation simple: A plus (+) indicates an effect which makes the gap
larger, all else equal, while a minus () indicates the opposite. The results are presented in
table 1a-1d below.
34
34
The complete results are found in the appendices.
21
Table 1a: Blue collar workers 1973-2012.
(1) (2) (3) (4)
BOX I empQ -* -* + -*
studQ -* - -* +
time +* + +* +*
BOX II unemp
fem
- -
unemp
male
+ +
unemp
tot
+
vac +* +* -
growth - -* -
BOX III cent -* -*
um (% fem) -* -
BOX IV fert +*
age at 1st birth (wom) -*
R
2
adj .71 .72 .89 .96
DW 0.68 0.88 2.11 1.76
*t-value >1.90
Table 1b: White collar workers in private sector. 1973-2012.
(1) (2) (3) (4)
BOX I empQ -* - +* +
studQ - -* -* +
time -* -* -* +*
BOX II unemp
fem
+ +*
unemp
male
- -
unemp
tot
+*
vac +* +* +*
growth - - +
BOX III cent - +
um(% fem) -* -*
BOX IV fert -
age at 1st birth (wom) -*
R
2
adj .92 .95 .97 .99
DW 0.74 1.25 2.12 1,90
*t-value >1.90
22
Table 1c: State employees 1973-2012.
(1) (2) (3) (4)
BOX I empQ -* -* -* -*
studQ -* -* -* -*
time +* +* +* +*
BOX II unemp
fem
-* -*
unemp
male
+* +*
unemp
tot
+*
vac -* -* -*
growth +* -* +*
BOX III cent + +
um (% fem) + +__
BOX IV fert +
age at 1st birth (women) -__
R
2
adj .24 .75 .91 .86
DW 0.20 0.94 1.79 1.65
*t-value >1.90
Table 1d: Municipality workers
a
1973-2012.
(1) (2) (3) (4)
BOX I empQ + - +* +*
studQ - -* -* -*
time -* - + +
BOX II unemp
fem
-* -
unemp
male
+ +
unemp
tot
+
vac + +* +
growth +* + +
BOX III cent - -
um (% fem) -* -*
BOX IV fert +
age at 1st birth (women) -
R
2
adj .90 .93 .95 .96
DW 0.46 0.81 1.55 1.63
a
Secondary municipalities (landstingen) not included. *t-value >1.90
Table 1a-1d shows mixed results. The results for model (1) and (2) exhibit some similarity
with a visible catch-up effect in all but one group. Rising employment rates and higher female
student quota have, as expected, negative signs indicating a smaller gap. Adding more
variables to the model, (3) and (4), the catching up effect became less pronounced since it is
23
only in the state sector the two estimates are consequently negative and significant. Although
the catch-up effect is dominant in all models an interesting piece is that the effect of student
quota is more often as expected as it is for employment quota. In the former case 14 out of
16 estimates were negative, whereas ten were significant, while in the latter case ten was
negative of which eight were significant. This might give a hint on the role level of education
may have in combating the wage gap.
The economic variables, box II, in model (2) were all significant in the state sector while just
a couple were significant in the other groups. The interpretation is not always straightforward.
More vacancies will apparently contribute to a larger gap in three out of four occupational
groups while economic growth will make it smaller in the private sector and larger in the
public sector. The latter may perhaps be a result of the outcome of wage negotiations where
men have been more successful than women. Some will probable say that women are not as
good as men to negotiate over their own salaries. The effect of unemployment on the gender
gap differs. In all groups, with exception for white collar workers, rising female
unemployment may reduce the gap while male unemployment rate make the opposite. This
seems contradictory but, if the ones losing their jobs are primarily low paid and those keeping
their jobs are better paid this might be a reasonable explanation.
In model (3) a measure on central wage negotiations and female trade union density was
included. The estimates are negative in all groups but one, indicating that a higher degree of
centralization and more women in the unions makes the gap smaller. The exception here is the
state sector since a positive estimate, although insignificant, indicates the opposite. In the last
model (4) total unemployment rate replaced the gender specific rates and it is obvious that
high unemployment in general makes the gap larger, the estimates are positive in all groups
although not always significant.
The two family related variables, fertility rate and age of women at first birth, performed
mixed results. The main impression is though: The higher the fertility rate the larger the gap
and the older the woman is at first birth the smaller the gap all else equal. However, this was
more evident for the latter variable than the former. The negative age-estimates in all groups
is of course interesting and indicates something previously less discussed: The consequences
of for example deliberately postponement of motherhood, of womens rising interest for
higher education and the development of the gender equality in general. I will come back to
this.
24
At last, it is often said that time settle most problems but in this particularly case time
seems not to be a trustworthy partner. Among white collar workers it may, to a certain degree,
be true but not in the other groups. Among employees in the state sector all estimates were
positive and significant and among blue collar workers three out of four estimates were
positive and significant indicating that the gender pay gap did increase not, as expected,
decrease as time went on, all else equal. Among municipality workers the time-effect was
more undecided.
What would this and other variables tell if the period under study was shorter? The reason to
shorten the period is that the reduction in the gender wage gap stopped in all groups in the
beginning of the 1980s (see figure 1). Another reason is that we can include a new variable,
productivity, and replace student quota with education quota in the model. The result of this is
presented below.
Table 2: Gender wage gap 1985-2012.
Blue collar workers (BCW); White collar workers (WCW); State employees (SW); Municipality workers (MW)
BCW WCW SW MW
a
BOX I eduQ - - -* -*
time + + +* +
BOX II unemp
tot
+* + - -
vac + +* -* +*
productivity +* + - +
growth -* - - -
BOX III cent - + +* +
BOX IV fert + - + +
age 1st birth - -* +* +*
R2 adj 0.75 .91 .94 .95
DW 2.61 2.72 1.86 2.50
a
Secondary municipalities (landstingen) not included. *t-value >1.90
The signs of the estimates are in many ways similar to the previous ones and the significant
results are few. The estimates have equal signs in three cases: More women in the population
with higher education and economic growth have contributed to a smaller gap during the
period under study while the estimate for the time-variable displays the opposite effect.
Accepting three estimates with similar signs as reasonable we may extend this and conclude
25
that number of vacancies, productivity and rising fertility may also have contributed to make
the gap larger, at least not smaller, during the period. Overall the regression analysis have
given more + signs than - signs which makes the gender wage gap more problematic and
the solutions not as simple as one could expect.
6 Discussions
The focus in this paper has been the evolution of the gender wage gap in Sweden during the
last forty years and what impact different factors may have exerted on the gap. The reason to
choose this angle was the long-lasting explanation to the gender wage-gap: Women lagging
behind men in labor market experience and level of education. The last forty years has shown
a grand gender convergence in these two respects but the implication for the gender pay gap
has not been as grand. Men and women are still rewarded unequally, and although the
findings in this study are mixed and in many cases inconsistent there are some indications on
what matters for the average gender gap. For sake of simplicity the estimates with equal signs
in at least three groups, significant or not, are summarized in the table below.
Table 3: Summary table 1973-2012 (Tab 1 mod (4)).
Blue collar workers (BCW); White collar workers (WCW); State employees (SW); Municipality workers (MW)
BCW WCW SEW MW
Decreasing gap: AgeW* AgeW* AgeW AgeW
Union Union* Union*
Increasing gap: Time* Time* Time* Time
Unemp Unemp* Unemp* Unemp
Growth Growth* Growth
Fert* Fert Fert
Obviously there is higher degree of consistency among factors increasing than decreasing the
gap. This is of course troublesome and especially that the time variable belongs to this group.
More research about this is needed before any firm conclusion is possible to draw.
35
The results for the two variables with a clear gender dimension, womens age at first birth and
fertility rate, deserve however special attention. I will therefore end by some reflections about
gender roles and gender equality and their impact on the pay.
35
See Goldscheider et al (2013) about attitudes and expectations on sharing of household tasks and child care
among men and women in Sweden.
26
The family, irrespective it is under construction, under enlargement or is going to break up, is
in most studies found to be more of a problem for women than for men when it comes to labor
market related issues such as pay and careers. Motherhood is still a hindrance to young
women's careers with long-lasting consequences. However, in our case it seems as the age of
the woman at first birth may mitigate this negative effect. The older she is at her first birth the
smaller the gender gap and vise versa. The reason for this, out of womens perspective, may
vary but it seems reasonable to assume that older first-time-mothers are more experienced
and more educated. They are probably also better informed and prepared to look after their
rights, towards the employers, than younger ones are when they get pregnant and step into
motherhood for the first time. A third reason may also be that the probability is higher that an
older first-time mother is living in a relationship where gender equality, equal sharing of
both paid and unpaid work, is more prevalent than among younger parents.
From the employers perspective, on the other hand, an older first time mother may also be
seen as less of problem within the firm and a period on leave, due to child care, will therefore
be less costly to the employer. Her competence is worth waiting for and the longer she has
been with the employer the more valuable she might be and the lower interest for the
employer to punish her in case of motherhood. Another positive effect, out of the
employers perspective, is that there are natural limits on number of children and starting late
may, most likely, indicate fewer children.
If the age of the first time mother may influence the wage gap by reducing it, the fertility rate
will do the opposite. Although the level of significance for the estimates is low the message is
clear. This is in line with previous findings, the cost of having children have always been
higher for women than for men. Women may have mitigated the negative effect through
constantly catching up on men, but now is the end of that road reached. Something new is
needed in order to further reduce the gender gap. The natural question is therefore whether it
is about time for men to catch up on women?
Men are still lagging behind women when it comes to time spent on children and other
household duties. This will, most likely, not be sustainable in a long-term perspective. The
convergence between men and women in this respect has started but the differences are still
huge. One reason, often referred to, behind the uneven division is the actual gender wage
differentials there are. As long as womens earnings are lower they will, on average, perform
more unpaid household work and as long as they keep doing it they will continue to receive
27
lower income. One way to break this vicious circle is to encourage and maintain the fathers
emotional commitment to the children direct from the start.
If the economic incentives were obvious for women to be part of the paid labor force, the
incentives for men to take part in the household work is almost non-existent. It is therefore
necessary to broaden the concept of rewards and include non-pecuniary ones as well. The
benefit of having a close relationship to own children from an early stage must be clarified. A
growing number of men have already experienced the backlash of not participating e.g. in
case of divorce. The fight about children has been devastating for many families and for
many fathers this has been a wake-up call. A way to avoid custody fights in the future may be
to take part right from the start - through sharing the emotional and economical responsibility
for children and household. The Swedish parental insurance, introduced in 1974, offered this
opportunity from start. However, equal sharing was hardly an issue 40 years ago. The figure
below gives a snapshot of the process of development so far, and a preliminary forecast for
the coming years.
Figure 8: The convergence in parental leave (percent of days) between parents.
The paid parental leave was in the beginning 180 days, 90 days to the mother and 90 to the
father with the option to transfer days to the other parent. Most fathers transferred their days
to the mothers. Today, 2014, the full paid days are 480 whereas 60 days are not transferable to
0
20
40
60
80
100
Women
Men
28
the other parent. The introduction of the two daddy-months, 1995 and 2002, have certainly
helped to increase the fathers share but still fathers on longer leave is uncommon. Mothers
are still using the lion part, 75 percent. A rising interest among the fathers themselves and
expectations on future fathers from the public in general may help to make fathers periods of
leave a normal thing. A very simple forecast where the future evolution proceeds at the same
speed as previous periods shows that in approximately twenty years the sharing of parental
leave may lie in between 40 to 60 percent, i.e. the definition of gender equality (solid line in
the figure). With a third daddy month this may be reached within 15 years (dotted line).
Whether this seems reasonable or not I leave to reader to judge.
The paper started with a reference to the introduction of the individualized tax-reform in the
beginning of the 1970s, a reform that was essential for womens liberation. From being
primarily unpaid and economically dependent they became an active part in the paid labor
force. It is interesting to remember though, as mentioned above, that this change was preceded
by a long time of discussions between and within groups, pro and against the tax-reform. The
present discussions about the future family policy seem to be in the same stage at the moment
as the arguments, pro and against equal sharing of parental leave, are in many cases the same.
However, the substantial difference is that men, not women, are in focus this time. It is my
belief that men, for many reasons, will catch up on women in the family related businesses
and when they do the economic gender-balance in the labor market will also be possible to
reach. Although I am convinced that this is a necessity I am not as convinced that it will be a
sufficient condition and referring back to Goldin a lot remains to be done within the labor
market and the firms as well.
36
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nd
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30
Appendices
Table A1a Blue collar workers 1973-2012 (standard errors within brackets)
(1) (2) (3) (4)
empQ -1.77 -1.85 1.59 -2.25
(.312) (.426) (1.68) (1.053)
studQ -.772 -.487 -.822 .022
(.256) (.357) (.283) (.216)
time .010 .006 .014 .036
(.004) (.006) (.005) (.010)
unempFem -.037 -.029
(.033) (.026)
unempMale .043 .045
(.032) (.025)
unempTot .013
(.008)
vac .000 .000 -.000
(.000) (.000) (.000)
growth -.011 -.019 -.006
(.007) (.007) .005)
cent -3.18 -1.31
(1.03) (.652)
unionFem -.076 -.010
(.028) (.018)
fert .196
(.074)
age at 1
st
birth (wom) -.252
(.076)
Constant -19.45 -12.24 -25.59 -63.74
(6.8) (11.49) (9.0) (18.42)
R
2
adj .71 .72 .89 .96
DW .68 .88 2.11 1.76
31
Table A1b White collar workers 1973-2012 (standard errors within brackets)
(1) (2) (3) (4)
empQ -.787 -.290 1.88 .928
(.178) (.196) (.731) (.632)
studQ -.199 -.333 -.294 .206
(.146) (.164) (.123) (.129)
time -.008 -.008 -.006 .015
(.002) (.003) (.002) (.006)
unempFem .022 .025
(.015) (.011)
unempMale -.013 -.008
(.015) (.011)
unempTot .015
(.005)
vac .000 .000 -.000
(.000) (.000) (.000)
growth -.001 -.001 .000
(.003) (.003) (.003)
cent -.488 .180
(.448) (.391)
unionFem -.043 -.030
(.012) (.011)
fert -.059
(.044)
age at 1
st
birth (wom) -.199
(.046)
Constant 14.80 14.44 11.65 -26.54
(3.88) (5.27) (3.91) (11.05)
R
2
adj .92 .95 .97 .98
DW .74 1.25 2.12 1.90
32
Table A1c State employees 1973-2012 (standard errors within brackets)
(1) (2) (3) (4)
empQ -1.949 -4.919 -4.634 -6.133
(.734) (.582) (2.23) (3.02)
studQ -1.278 -.973 -1.74 -1.637
(.603) (.487) (.375) (.620)
time .026 .038 .055 .059
(.008) (.008) (.006) (.029)
unempFem -.219 -.137
(.045) (.034)
unempMale .142 .074
(.044) (.033)
unempTot -.042
(.022)
vac -.000 -.000 -.000
(.000) (.000) (.000)
growth .030 .015 .029
(.010) (.009) (.015)
cent 1.237 2.792
(1.367) (1.872)
unionFem) .000 .038
(.037) (.051)
fert .231
(.211)
age at 1
st
birth (wom) -.060
(.219)
Constant -50.78 -71.06 -105.54 -113.505
(16.02) (15.69) (11.92) (52.88)
R
2
adj .24 .75 .91 .86
DW .20 .94 1.79 1.65
33
Table A1d Municipality workers 1973-2012 (standard errors within brackets)
Secondary municipalities (landstingen) not included.
(1) (2) (3) (4)
empQ .415 -.314 4.904 3.713
(.428) (.521) (1.80) (1.784)
studQ -.634 -.880 -1.682 -1.101
(.352) (.436) (.302) (.366)
time -.023 .013 .008 .026
(.005) (.007) (.005) (.017)
unempFem -.102 -.028
(.041) (.027)
unempMale .070 .032
(.040) (.027)
unempTot .014
(.013)
vac .000 .000 -.000
(.000) (.000) (.000)
growth .024 .007 .009
(.009) (.007) (.009)
cent -1.283 -.047
(1.103) (1.105)
unionFem -.099 -.077
(.030) (.030)
fert .060
(.125)
age at 1
st
birth (wom) -.197
(.129)
Constant 43.90 25.38 -14.64 -47.70
(9.35) (14.05) (9.61) (31.22)
R
2
adj .90 .93 .95 .96
DW .46 .81 1.55 1.63
34
Table A2 Gender pay gap 1985-2012.
BCW=blue collar workers, WCW=white collar workers, SW=state workers,
MW=municipality workers. (Standard errors within brackets)
BCW WCW SW MW
eduQ -4.53 -.096 -12.48 -14.36
(2.63) (1.75) (2.92) (3.58)
time .017 .007 .083 .043
(.018) (.012) (.020) (.024)
unempTot 0.017 .010 -.012 -.001
(.008) (.005) (.009) (.011)
vac .0001 .0002 -.0003 .0005
(.000) (.000) (.000) (.000)
productivity .007 .002 -.002 .001
(.002) (.002) (.003) (.003)
growth -.025 -.004 -.003 -.004
(.009) (.006) (.010) (.012)
cent -.170 2.57 10.13 1.63
(2.41) (1.61) (2.67) (3.27)
fert .051 -.086 .196 .154
(.139) (.093) (.155) (.189)
age at 1
st
birth (wom) -.137 -.217 .531 .489
(.103) (.069) (.115) (.141)
Constant -29.16 -10.92 -172.96 -88.19
(32.92) (21.97) (36.61) (44.86)
R
2
adj .75 .91 .94 .95
DW 2.61 2.72 1.87 2.50
Table A3: Summary table for the two periods and for private and public sectors separately.
1972-2012 1985-2012.
Private Public Private Public
time + + + +
unempTot + + + -
age at 1
st
birthWom - - - +
studQ + - .. ..
eduQ .. .. - -
growth ? + - -
fert ? + ? +
union - ? .. ..
vac ? ? + ?
cent ? ? ? +
productivity .. .. + ?
empQ ? ? .. ..
Gender wage gap: minus=smaller; plus=larger; ? = (+) and () within the same sector
35
Wage compression, wage drift and wage