Scandinavian Working Papers in Economics
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Department of Economics, Aarhus School of Business, University of Aarhus Working Papers, Department of Economics, Aarhus School of Business, University of Aarhus

No 01-4:
Gender Differences in Managerial Compensation - Evidences from Denmark

Mette Lausten ()

Abstract: This paper examines the gender earnings gap at the executive level on a unique data set of Danish

executives in the period 1992-1995. Ordinary wage equations show that the wage gap disappears

when controlling for “Who you are”, “Where you work” and “What you do”. Additionally,

decomposition into inter- and intra-occupational differences shows that two thirds of the wage gap

are due to differences between occupations. Individual-specific characteristics contribute

negatively to the wage gap, i.e. in favour of women. Decomposing by real authority level shows

a larger unexplained part of the wage gap. Real authority is more discriminating than formal


Keywords: Managerial compensation; Gender wage gap; Corporate governance; (follow links to similar papers)

JEL-Codes: J31; J44; (follow links to similar papers)

27 pages, January 1, 2001

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