The gender wage gap reevaluated: A regional perspective

Over the past decades, the gender wage gap has been observed to fall due to women’s better performance in higher education as well as rising labor force participation. However, gender inequalities are still noticeable. Theories related to causes of this gender wage gap have been divided into two categories: the supply-side causes concerning human capital characteristics and the demand-side causes concerning discrimination in the labor market. Regional characteristics associated with variation in the gender wage gap have not had much attention paid to them. Results of this paper show that regions with more well-educated women, higher GDP per capita, more specialized in industries of Health Care and Social Assistance, Accommodation and Food Services, fewer households with childcare needs and lower employment rate are likely to lead to less wage discrimination against female workers. From the perspective of motherhood penalty, regions with a higher demand for childcare is suggested to allow female workers to work flexibly, encourage male workers to take paternity leave with their wives and equip sufficient childcare services for working mothers.