Where do women earn more than men? Explaining regional differences in the gender pay gap

Abstract This paper provides new evidence on the magnitude and determinants of regional differences in gender pay gap. On basis a comprehensive data set all full‐time employees Germany, we explain profound variation gap at small‐scale level with theory‐based individual job‐related characteristics. Using Oaxaca–Blinder decomposition, find pronounced spatial impact considered determinants. Whereas characteristics are important drivers regions high gap, come into effect low negative The results underscore role played by establishment composition region kind jobs provided for gendered earnings.