A study on wage differentials between men and women in Finland in 1985

Wage differentials between men and women is one of the most topical issues of equality in Finland where the female labour force participation rate is one of the highest in the western world and full-time work is also a norm for women.

The article introduces a study on wage differentials between men and women in Finland. It is based on exceptionally large data, consisting of linked population census and tax registers and covering the whole salaried population in 1985. The most detailed level of the Finnish Occupational Classification containing 390 occupational categories is used. In addition, wage differentials are studied by branches and sectors of economic activity and by age, education and family stage.

The results show that occupations tend to be segregated according to gender. Only 9 per cent of employees work in occupations in which the proportions of men and women are equal. Wage differentials are smallest in the most female-dominated occupations and increase steadily when moving towards more male-dominated occupations. In other words, wage differentials would seem to be due to the predominance of men in an occupation rather than to segregation.