70th International Atlantic Economic Conference

October 11 - 13, 2010 | Charleston, USA

The Role of Industry in the Gender Wage Gap: Evidence from Taiwan

Wednesday, October 13, 2010: 9:00 AM
Hwei-Lin Chuang, Ph.D. , Economics, National Tsing Hua University, Hsinchu, Taiwan
Eric S. Lin, Ph.D. , Economics, National Tsing Hua University, Hsinchu, Taiwan
This study attempts to examine the role of industry in explaining the gender wage gap in

Taiwan from various aspects including wage decomposition, interindustry wage differentials,

and gender wage gap across industries. Using the 1978-2003 Manpower Utilization Survey

data, our results in terms of the wage decomposition indicate that the inclusion of industry

variables increases the explained portion of the gender wage gap over our sample period by

2-14 percent. The analysis of the interindustry wage differentials shows that a female (male)

worker in the highest wage differential industry earned 15-36 (10-29) percent more than the

average female (male) worker among all industries. The ranges of the interindustry wage

differentials are higher among female workers than among male workers for most years, and

the adjusted standard deviations are also higher for females than for males in each year.

We have also applied various measures to assess the gender wage gap across industries and

found that women in the Mining industry faced the largest gender wage gap for the years

1978 to 1991. In the Mining industry, women have a wage differential that is 35-93 percent

below that of men during this time period. The Finance industry has tended to be the

most advantageous industry for women during the past decade. The wage differential for

women in the Finance industry is 9-16 percent below that of men. These results along with

the increase in the ratio of women in the Finance industry and the decrease in the ratio of

women in the Mining industry may justify the trend toward a narrowing overall gender wage

gap in Taiwan from 1992 on.