Evaluating the Gender Wage Gap in the Labour Market: An empirical study from Norway
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Abstract
The purpose of this master thesis is to clarify to what extent traditional human capital factors, as well as other work environment characteristics, contribute to the gender wage gap. In this thesis, we analyze register data collected from Microdata.no on the whole population. First, we investigate this through a cross-sectional analysis of the total Norwegian population for the years 2018 and 2019, utilizing the traditional Oaxaca-Blinder decomposition method, and compare our findings with those of Blau and Kahn (2017). Second, we attempt to understand the wage differentials between the genders with the same educational attainment. We do this by running a regression analysis of the years 2000, 2010, and 2020. We have grouped individuals into two groups: those with low levels of education (L-group) and those with high levels of education (H-group).
Our findings suggest that conventional human capital variables taken together explained little of the gender wage gap, while gender differences in the industry continued to be important. As a result, most of the gender wage gap is due to unexplained factors. Second, we found that the gender wage gap among those that were low educated was larger when compared to those with higher education levels.