Volume 44, Number 174,
July-September 2013
Salary Gaps in Uruguay: Gender, Segregation
and Unequal Labor Qualifications
Alma Espino
Gender, Segregation and Salary Gaps ( ...continuation )

The results shown in Table 5 indicate that the gap can be attributed (in decreasing order) to the gender of the employees – which absorbs the entire contribution of education to decreasing the gap, occupational segregation (50%) and sector segregation (22%)10 (Table 5). Macpherson and Hirsch (1995) stated that the percentage of women in occupations may be a proxy for other characteristics of the jobs, and consequently, the negative effects estimated on the salaries may partially reflect compensation to the differentials based on employee preference or qualifications requirements. But in interpreting these results, it must also be kept in mind that women are located in occupations, sectors and establishments with a high proportion of females.11 The results presented here confirm prior studies, emphasizing the importance of occupational segregation in the salary gap between genders. These results also show that although a considerable portion of the gender salary gap can be explained by the segregation of women into lower-paid occupations and sectors, a significant part of this gap is still attributable to the gender of the individual.

10 The R. Oaxaca procedure was also applied to the effects of the breakdown of the gaps – with and without bias selection correction – considering the salary structure for males as non-discriminatory. The results were consistent with those obtained by the prior procedure. When correction for bias selection was included, these results were practically identical. The unexplained component of the differences was positive and significant. The explained component once again highlighted the coefficient of years of education, whereas for the unexplained portion, the higher positive sign coefficients corresponded to occupational segregation and sector of activity.

11 Bayard (2003) found that in comparison with estimates of a single equation, the total estimated effect of the gender of an individual is of the same size in absolute value using the salary structure of women, but is larger if using the male salary structure.

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PROBLEMAS DEL DESARROLLO. REVISTA LATINOAMERICANA DE ECONOMÍA, Volume 49, Number 195 October-December 2018 is a quarterly publication by the Universidad Nacional Autónoma de México, Ciudad Universitaria, Coyoacán, CP 04510, México, D.F. by Instituto de Investigaciones Económicas, Circuito Mario de la Cueva, Ciudad Universitaria, Coyoacán,
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