Selection on Ability and the Early Career Growth in the Gender Wage Gap PDF Download
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Author: Eduardo Fraga
Publisher:
ISBN:
Category :
Languages : en
Pages : 50
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Book Description
This paper analyzes the effect of selection on ability on the evolution of the gender wage gap during the first years of professional life. We use longitudinal data with 16 years of the early career history of formal sector workers in Brazil. The panel allows us to build a measure of unobserved ability that we use to analyze the dynamics of labor market selection across genders as individuals age. We focus on the cohort born in 1974, for which we have a close to complete history of formal labor market participation. For this cohort, the average ability of formally employed men improved in relation to that of women during the first years of professional life. The selection of men and women into the labor market was similar at age 21, but by age 31 high-ability men (one standard deviation above the mean) had a probability of employment 1.6 percentage point higher than their high-ability female counter-parts. This contributed to the increase in the conditional gender wage gap observed in the early career, as the ability distribution of employed women deteriorated in relation to that of employed men. Our estimates suggest that, for the 1974 cohort, this mechanism explains 32% of the cumulative growth in the conditional gender wage gap between ages 21 and 36.
Author: Eduardo Fraga
Publisher:
ISBN:
Category :
Languages : en
Pages : 50
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Book Description
This paper analyzes the effect of selection on ability on the evolution of the gender wage gap during the first years of professional life. We use longitudinal data with 16 years of the early career history of formal sector workers in Brazil. The panel allows us to build a measure of unobserved ability that we use to analyze the dynamics of labor market selection across genders as individuals age. We focus on the cohort born in 1974, for which we have a close to complete history of formal labor market participation. For this cohort, the average ability of formally employed men improved in relation to that of women during the first years of professional life. The selection of men and women into the labor market was similar at age 21, but by age 31 high-ability men (one standard deviation above the mean) had a probability of employment 1.6 percentage point higher than their high-ability female counter-parts. This contributed to the increase in the conditional gender wage gap observed in the early career, as the ability distribution of employed women deteriorated in relation to that of employed men. Our estimates suggest that, for the 1974 cohort, this mechanism explains 32% of the cumulative growth in the conditional gender wage gap between ages 21 and 36.
Author: Astrid Kunze
Publisher:
ISBN:
Category : Pay equity
Languages : en
Pages : 42
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Book Description
Author: Philippe Belley
Publisher:
ISBN:
Category :
Languages : en
Pages : 36
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Book Description
The paper focuses on the early career patterns of young male and female workers. It investigates potential dynamic links between statistical discrimination, mobility, tenure and wage profiles. The model assumes that it is more costly for an employer to assess female workers' productivity and that the noise/signal ratio tapers off more rapidly for male workers. These two assumptions yield numerous theoretical predictions pertaining to gender wage gaps. These predictions are tested using data from the 1979 cohort of the National Longitudinal Survey of Youth. As predicted by our statistical discrimination model, we find that men and women have the same wage at the start of their career, but that female wages grow at a slower rate, creating a gender wage gap. Also consistent with our model, we find that mean wages are higher for workers who keep their job, while wage growth is stronger for workers who change job.
Author:
Publisher:
ISBN: 9780753020357
Category : Pay equity
Languages : en
Pages :
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Book Description
In Finland the gender wage gap increases significantly during the first 10 years after labor market entry accounting most of the life-time increase in the gender wage gap. This paper focuses on the early career gender wage differences among university graduates and considers several explanations for the gender wage gap based on the human capital theory, job mobility and labor market segregation. Gender differences in the accumulation of experience and in the type of education explain about 16 percent of the average gender wage gap that emerges during the first 11 years after labor market entry among university graduates. Differences in employer characteristics between male and female graduates account about 10 percent for the average early career gender wage gap. In all gender differences in background characteristics explain about 27 percent of the average early career wage differences between male and female university graduates. The most important single factor contributing to the gender wage gap is the family type. Women seem to suffer considerable larger wage losses due to marriage and children than men.
Author: Alan Manning
Publisher:
ISBN:
Category :
Languages : en
Pages :
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Author: Francine D. Blau
Publisher: IZA Prize in Labor Economics
ISBN: 9780198779971
Category : Business & Economics
Languages : en
Pages : 0
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Book Description
In all Western societies women earn lower wages on average than men. The gender wage gap has existed for many years, although there have been some important changes over time. This volume of collected papers contains extensive research on progress made by women in the labor market, and the characteristics and causes of remaining gender inequalities. It also covers other dimensions of inequality and their interplay with gender, such as family formation, wellbeing, race, and immigrant status. The author was awarded the 2010 IZA Prize in Labor Economics for this research. Part I comprises an Introduction by the Editors. Part II probes and quantifies the explanations for the gender wage gap, including differential choices made in the labor market by men and women as well as labor market discrimination and employment segregation. It also delineates how the gender wage gap has decreased over time in the United States and suggests explanations for this narrowing of the gap and the more recent slowdown in wage convergence. Part III considers international differences in the gender wage gap and wage inequality and the relationship between the two. Part IV considers a variety of indicators of gender inequality and how they have changed over time in the United States, painting a picture of significant gains in women's relative status across a number of dimensions. It also considers the trends in female labor supply and what they indicate about changing gender roles in the United States and considers a successful intervention designed to increase the relative success of academic women. Part V focuses on inequality by race and immigrant status. It considers not only race difference in wages and the differential progress made by African-American women and men in reducing the race wage gap, but also race differences in wealth which are considerably larger than differences in wages. It also examines immigrant-native differences in the use of transfer payments, and the impact of gender roles in immigrant source countries on immigrant women's labor market assimilation in the U.S. labor market.
Author: Helen Russell
Publisher: ESRI
ISBN: 0707002400
Category : Pay equity
Languages : en
Pages : 95
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Book Description
Examines the distribution of pay differentials and other rewards among recent male and female graduates.
Author:
Publisher:
ISBN:
Category : Sex discrimination in employment
Languages : en
Pages : 120
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Author: Abdulaziz Reshid
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
During the first 10 years in the Swedish labor market, male university graduates experience a faster wage growth than females. We investigate the role job and upward occupational mobility have for the creation of gender difference in early career wage growth; and the role of motherhood as an underlying mechanism. We find that although men and women change jobs and occupations at the same rate, women receive a significantly lower wage returns to mobility than men. We find evidence that women's lower return to occupational mobility is largely explained by motherhood, while the evidence for job mobility is rather weak.
Author: Shengjun Jiang (Ph. D. in economics)
Publisher:
ISBN:
Category : Labor economics
Languages : en
Pages : 214
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Book Description
This dissertation consists of three chapters. In the first chapter, I estimate wage effects of double majors and double degrees among a sample of college graduates in their early career, using the 1997 National Longitudinal Survey of Youth (NLSY97). I rely on selection on observables and control for individuals’ test scores, family background, and school characteristics when estimating the wage effects. I further consider whether wage effects of a double major/degree can be explained by two mechanisms: the “skill-enhancing” effect (increase in the depth of knowledge accumulated in college) and the “job-matching” effect (increase in the chance of working in an occupation that is more closely related to one’s college major). I examine whether estimated wage effects associated with a double major/degree (after controlling for confounding factors) decrease as a result of controlling for the depth of knowledge accumulated in college and the relatedness between college major and occupation. I find that having a double major does not make a significant difference in one’s early-career post-college wages. A double degree is estimated to be associated with a 0.088 increase in log wages after controlling for confounding factors. About a third of this effect can be explained by a combination of both the “skill-enhancing” and “job-matching” effects. In the second chapter, I use the NLSY97 to study whether being mismatched in the first job (meaning the individual’s occupation is not among the common occupations to which his/her college major typically leads) has a long-lasting effect on wages. I also investigate wage growth and job change patterns for different types of mismatched workers. I distinguish between demand-side mismatch due to job dissatisfaction and supply-side mismatch due to reasons other than reported job dissatisfaction. I find that both types of mismatched workers have significantly lower wages compared to matched workers, but that demand-side mismatched workers face a larger wage penalty than do supply-side mismatched workers. However, the wage penalty associated with demand-side mismatch reduces about 1.6 times as fast as does the penalty of supply-side mismatch as labor market experience increases. The result is that the estimated log-wage effect of mismatch virtually disappears in six years for both demand-side and supply-side mismatched workers, even though the former face a large wage penalty at the outset. Further, I show that demand-side mismatched workers tend to have more between-job mobility and between-job wage growth than matched workers, whereas supply-side mismatched workers tend to have more within-job mobility and within-job wage growth than matched workers. Overall, job mobility and subsequent wage growth contribute to the closure of the wage gap between matched and mismatched workers. My findings support predictions stemming from the job match literature that wage effects of first-job mismatches are not long-lasting. In the last chapter, I use NLSY97 data to determine the extent to which detailed measures of college-related factors, based on course credits and grades earned in different fields of study, explain the gender wage gap among college graduates in their early career. I start with a standard set of controls and then add my detailed measures of college-related factors to identify the increase in the explained gender wage gap. A decomposition of the gender wage gap reveals that the inclusion of detailed measures of college-related factors along with the standard set of controls increases the explained part of the estimated gender wage gap from 65.6% to 69.1%-77.8%. Among all the pre-market factors, detailed measures of college-related factors have the most explanatory power to the estimated gender wage gap (28.5%-39.1%). My findings imply that gender differences in credits and grades earned in different fields of study capture additional gender differences in skills that cannot be fully represented by gender differences in other factors such as college major and occupation. Compared to gender differences in college major and general academic achievement, gender differences in credits and grades earned in different fields of study are better pre-market measures for differences in skills between college-educated men and women.
