Scandinavian Working Papers in Economics

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

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

Mette Lausten ()
Additional contact information
Mette Lausten: Institute of Local Government Studies,, Postal: Nyropsgade 37, 1602 Copenhagen V, Denmark

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 authority.

Keywords: Managerial compensation; Gender wage gap; Corporate governance

JEL-codes: J31; J44

27 pages, January 1, 2001

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