Abstract

This paper analyses the gender pay determinants between top and lower level of Portuguese employees. A relatively large data pool, for 2003, covering business functions hitherto neglected, sheds a new light into the factors that lead to the earnings of men and women. Our analysis combines human capital with internal-labour-markets theories. Our findings allow the identification of jobsegregation as one important source of the gender pay gap. Moreover, they confirm that earnings are determined by different factors and suggest a reasonable opportunity for women to combine career and family.