This Economics Dissertation Asks What are the Main Components of the Gender Pay Gap and to What Extent do they Contribute to this Inequality? What is the size of the gender pay gap in the UK? What are the main components which contribute to this gap? There have been various changes in gender relations and labour market structure, all of which have affected the pay gap. Increase in women’s educational attainment, anti-discrimination legislation and changes in women’s attitudes towards work have all caused the gap to narrow in recent years. The Oaxaca decomposition of the gender pay gap distinguishes between components that attribute to gender differences in productivity related characteristics and a residual component which is normally recognised as discrimination. This study of data from the 2010 British labour survey shows there is a gender pay gap of approximately 14.8% of which much is attributed to uneven distribution of sexes in occupational and industrial sectors. However i
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