Impact of change in labor composition on the gender wage gap of host countries

Abstract

According to economic theory, gender wage gap is influenced by changing labor composition, whenever the laborers in the labor market are active and employed. The supply of female laborers can impact the gender wage gap in a nation, where the impact can be both positive and negative. The paper investigates whether the change in female labor supply due to higher female immigrant inflow has any impact on the gender wage gap of the host countries. Since female immigrant inflow has been on the rise compared to the past, the supply of female laborers within the labor market has been increasing as well. The paper uses fixed effects model to analyze the impact on gender wage gap caused by the labor force composition for females. No significant impact was observed on the gender wage gap of the host countries.