Gender differences in labor market wages: A comparison of industrial sector effects and a decomposition within four occupations

Women earn less than men. The reason may be due to either industrial segmentation or occupational segregation or both according to the current research. Researches focusing on one structure tend to neglect the other or to use an inadequate representation. This article examines the simultaneous impact of industrial sector and gender on imputed wages with labor force incumbents in four detailed occupations. These occupations are from a set identified as relatively internally homogeneous on measures of task performed from the Dictionary of Occupational Titles. Thus, within-occupational differences in work performed between males and females are minimized. The findings reinforce the importance of industrial sector for economic outcomes and demonstrate the value of an improved representation of occupation. The decomposition shows wage discrimination exists against females in each of these occupations, and in two sector-by-sector occupation comparisons, females should earn more than males.