Size and Causes of the Occupational Gender Wage‐gap in the Netherlands

Abstract

Research from the United States consistently shows that female‐dominated occupations generally yield lower wages than male‐dominated occupations. Using detailed occupational data, this study analyses the size and causes of this occupational gender wage‐gap in the Dutch labour market using multi‐level modelling techniques. The analyses show that both men and women earn lower wages if they are employed in female‐dominated occupations. This especially indicates the significance of gender in Western labour markets, since overall levels of wage inequality are relatively small in the Netherlands compared to, for example, the United Kingdom and the United States. Differences in required responsibility are particularly important in accounting for this occupational wage‐gap. Nonetheless, we find large wage penalties for working in a female‐dominated instead of a male‐dominated occupation for occupations that require high levels of education, skills, and responsibility.