Same degrees, different outcomes? Fields of study choices and gender wage inequality in Finland and Germany.

Men and women's diverging fields of study choices contribute to the gender wage gap among highly educated workers in several countries, yet systematic cross-national comparisons are rare. Using data from the German Socio-Economic Panel Study, the German Microcensus, and Statistics Finland this study explores whether fields of study shape the gender wage gap differently in Germany than in Finland; two countries that display strong linkages between education and employment, but differ in the generosity of family policies. The results show that fields of study are an important source of gender wage disparities in both countries. In Germany, associations between characteristics of fields and wages do not seem to differ between the genders. In Finland, the findings suggest that women profit more than men from fields with strong linkages to occupations. Our findings highlight that research analyzing the association between fields of study and gender inequality needs to consider institutional features and gender-specific patterns.

Fatherhood and wage inequality in Britain, Finland, and Germany.

Objective: This study investigates whether and how fatherhood shapes the wage distribution in Britain, Finland, and Germany. Background: Existing research debates whether fatherhood is associated with greater wages. However, it remains unclear whether the association between fatherhood and wages varies along the wage distribution as well as institutional contexts. To explore this, we compare three countries that differ in their wage bargaining institutions and family policies. Method: We use unconditional quantile regression on longitudinal data from the 1995 to 2016 waves of the Finnish Linked Employer Employee data, German Socio-Economic Panel, and UK Longitudinal Household Study. To control for selection into fatherhood, we combine quantile regressions with fixed effects techniques. Results: Results show little evidence of substantial fatherhood wage effects along men's wage distribution. In all countries, fathers' higher wages at the median and top of the wage distribution are mostly accounted for by selection, but fatherhood shifts the bottom part of the distribution to the left particularly in the UK. Conclusions: The extent to which having a child affects men's wages across the wage distribution is similar across three diverse policy contexts. Yet, differences across the wage distribution are larger in the UK. We argue this may be linked to its higher level of inequality typical of liberal labour markets.