This study examines the gender wage gap in the USA using two separate cross-sections from the Current Population Survey (CPS). The extensive literature on this subject includes wage decompositions that divide the gender wage gap into “explained” and “unexplained” components. One of the problems with this approach is the heterogeneity of the sample data. In order to address the difficulties of comparing like with like, this study uses a number of different matching techniques to obtain estimates of the gap. By controlling for a wide range of other influences, in effect, we estimate the direct effect of simply being female on wages. However, a number of other factors, such as parenthood, gender segregation, part-time working, and unionization, contribute to the gender wage gap. This means that it is not just the core “like for like” comparison between male and female wages that matters but also how gender wage differences interact with other influences. The literature has noted the existence of these interactions, but precise or systematic estimates of such effects remain scarce. The most innovative contribution of this study is to do that. Our findings imply that the idea of a single uniform gender pay gap is perhaps less useful than an understanding of how gender wages are shaped by multiple different forces.

This essay provides a comprehensive interpretative framework to understand the reasons why the school-to-work transition is so slow in Italy, a typical example of the South European regime, where the educational system is rigid and sequential (education before work experience), the labor market has become more flexible through two-tier labor reforms and the family has an important role of shock absorber during the passage to adulthood. The main thesis of this essay is that the traditional disorganization of the educational and training system coupled with slow economic growth, rather than only low labor flexibility explains high (youth) unemployment. Important reforms – Jobs Act, Good School, European Youth Guarantee and reform of employment services – have been recently implemented, which are favoring a slow convergence toward the European social model, but it is still too early to draw conclusions as to the impact of such reforms on youth labor-market outcomes.