The earnings gap between male and female employees is substantial and persistent. Using
new data for Britain, this paper shows that an important contribution to this gap is made by
the workplace in which the employee works. Evidence for workplace and occupational
segregation as partial explanations of the earnings gap is presented. Having allowed also for
individual worker characteristics there remains a substantial within-workplace and withinoccupation
gender earnings gap. The contribution of these factors, as well as the earnings
gap itself, differ significantly across sectors of the labour market. The relative unimportance
of occupational segregation and the large remaining gender earnings gap suggest that
stronger enforcement of Equal Pay legislation is likely to be the most appropriate policy
response.