Do Rural Areas Gender-Discriminate Wages More than Metropolitan Areas?

Abstract

This study analyzes the gender wage gap in metropolitan versus rural areas using U.S. hourly wage data from the Bureau of Labor Statistics (BLS), for the period 2010-2025. The analysis uses regressions on a semi-log wage model and Blinder-Oaxaca decompositions to compare the gaps and separate the effects attributable to explained (endowment) differences from those attributable to unexplained (coefficient) differences. The semi-log wage model reveals a percentage wage decrease for females of approximately 17.4% in rural areas and 9.9% in metropolitan areas. The Blinder-Oaxaca decompositions further indicate that the unexplained (coefficient) component of the gap is substantially larger in rural areas than in metropolitan areas, while the explained (endowment) component is similar across the two areas. In conclusion, the gender wage gap persists in both rural and metropolitan areas and is more pronounced in rural areas—a pattern consistent with, though not direct proof of, greater wage discrimination in rural labor markets.