We examine the gender wage gap in Austria from 2005 to 2017 using data from EU-SILC. The raw gap of hourly wages declined
from 18.6 log points in 2005 to 14.9 log points in 2017. We use standard decomposition techniques that correct for differences
in the distributions of human capital and other variables between men and women. Decompositions of the wage gap indicate that
both the explained and the unexplained part of the gender wage gap decreased substantially over the last ten years. Using
the approach developed by Neumark (1988), the unexplained wage gap shrank from 8.7 log points in 2005 to 5.1 log points in
2017. The main reason for the decline in wage differences was the relative improvement of women's observed and unobserved
characteristics.
