Gender wage differences in Germany and Poland – Evidence from survey of earnings structure

Eurostat estimated that in 2012 in the EU women earned on average 16.5% less than men. This rate (GPG – Gender Pay Gap) varies e.g. among EU countries, and economic sectors. We can also observe that several factors (e.g. age, education, job seniority of employees and size of enterprise) affect the GPGrate. This phenomenon has a social dimension as well as economic importance (see e.g. discussion presented in [Klasen 1999], [Seguino 2000], [Blecker and Seguino 2002], [Löfström 2009], [Sinha et al. 2007]). The situation of women in the labor market is subject to the European Union policy. Prevention of discrimination against women has been included in the strategy for equality between women and men for 2010-2015.

Germany is characterized by the largest population in the EU and it is the third largest economy in the world. With reference to sustainable development, this country can be a benchmark for the others. However in Germany female wages are more than 22% lower than male ones. In contrast, Poland is characterized by the relatively low level of GPG - only 6%. Also in Eastern Germany^*the gender wage gap is much lower than in the western lands.

The main aim of the analysis is an examination of gender differences in wages in West and East Germany and in Poland using matched employer –employee micro data from the Survey of Earnings Structure. An analysis is provided using data that were collected shortly before the Global Financial Crisis (2006). In the study we apply econometric models and the Oaxaca-Blinder decomposition method.

^*It is worth mentioning that Poland and the Eastern part of Germany (former German Democratic Republic) belonged to the Soviet Block in the past i.e. after the World War II, up to the transformation started in 1989.