Skip to main content
Go to the home page of the European Commission (opens in new window)
English English
CORDIS - EU research results
CORDIS

Wage inequality within and across firms: The role of market forces, government and firm policies

Project description

Gender pay inequality in Germany

During the past decades, gender wage inequality has increased between, more so than within, firms in all industrialised countries. The EU-funded FirmIneq project will analyse these inequalities using four decades’ worth of German social security records and survey and administrative data. It will investigate how increased product market competition and routine-biased technological change contributed to the increasing gender wage inequality between firms. FirmIneq will study how the introduction of a minimum wage and changes in business taxing impact wage dispersion between firms and analyse whether firms offering family-friendly policies such as flexible working times and childcare contribute to gender inequality reduction. Finally, the project will investigate whether the firm environment influences women’s return to work after childbirth.

Objective

Wage inequality in industrialised countries has increased sharply over the past decades, and much of this increase has occurred between rather than within firms. Furthermore, substantial inequality between men and women persists in all industrialised countries, and a large part of the gender gaps observed today is attributable to the arrival of children. In this proposal, we put firms at the centre of the analysis and ask the following questions: First, which market forces can (partly) explain the increasing wage inequality between firms? Second, how do government policies alter the wage structure? And third, how do firm policies and the firm environment impact on gender inequality? All projects draw on four decades of German social security records comprising the near universe of workers and establishments, which we augment with survey and administrative data on firms. In Project A, we investigate how two important market forces, increased product market competition and routine-biased technological change, contributed to the increasing wage inequality between firms, by changing which firms operate in the market (selection) and how employment is distributed across low and high productivity firms (reallocation), and by differentially affecting wage growth across firm types (differential wage growth). In Project B, we study how two prominent government policies, the introduction of a minimum wage and changes in business tax rates, affect wage dispersion between firms through selection, reallocation and differential growth effects. In Project C, we first analyse whether firm provided family-friendly policies, most notably flexible working times and child care facilities, can be effective at reducing gender inequality. We then investigate how the firm environment, specifically the presence of co-workers who are likely to have a working mother and hold more egalitarian gender attitudes, shapes mothers’ return-to-work decisions and earnings trajectories after childbirth.

Fields of science (EuroSciVoc)

CORDIS classifies projects with EuroSciVoc, a multilingual taxonomy of fields of science, through a semi-automatic process based on NLP techniques. See: The European Science Vocabulary.

You need to log in or register to use this function

Keywords

Project’s keywords as indicated by the project coordinator. Not to be confused with the EuroSciVoc taxonomy (Fields of science)

Programme(s)

Multi-annual funding programmes that define the EU’s priorities for research and innovation.

Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

ERC-COG - Consolidator Grant

See all projects funded under this funding scheme

Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

(opens in new window) ERC-2018-COG

See all projects funded under this call

Host institution

UNIVERSITY COLLEGE LONDON
Net EU contribution

Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.

€ 1 392 166,00
Address
GOWER STREET
WC1E 6BT LONDON
United Kingdom

See on map

Region
London Inner London — West Camden and City of London
Activity type
Higher or Secondary Education Establishments
Links
Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

€ 1 392 166,00

Beneficiaries (2)

My booklet 0 0