Convergence in the gender wage gap in Australia over the 1980s: identifying the role of counteracting forces via the Juhn, Murphy and Pierce Decomposition

The paper utilises the Juhn Murphy and Pierce (1991) decomposition to shed light on the pattern of slow male-female wage convergance in Australia over the 1980s. The analysis allows one to distinguish between the role of wage structure and gender-specific effects. The central question addressed is w hether rising wage inequality counteracted the forces of increased female i nvestment in labour market skills, i.e. education and experience. The concl usion is that in contrast to the US and the UK, Australian women do not app ear to have been swimming against a tide of adverse wage structure changes.