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Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors

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Author Info

  • Marianne Bertrand
  • Claudia Goldin
  • Lawrence F. Katz

Abstract

The careers of MBAs from a top US business school are studied to understand how career dynamics differ by gender. Although male and female MBAs have nearly identical earnings at the outset of their careers, their earnings soon diverge, with the male earnings advantage reaching almost 60 log points a decade after MBA completion. Three proximate factors account for the large and rising gender gap in earnings: differences in training prior to MBA graduation, differences in career interruptions, and differences in weekly hours. The greater career discontinuity and shorter work hours for female MBAs are largely associated with motherhood. (JEL J16, J22, J31, J44)

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/app.2.3.228
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Journal: Applied Economics.

Volume (Year): 2 (2010)
Issue (Month): 3 (July)
Pages: 228-55

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Handle: RePEc:aea:aejapp:v:2:y:2010:i:3:p:228-55

Note: DOI: 10.1257/app.2.3.228
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  1. Carola Frydman & Raven E. Saks, 2007. "Executive compensation: a new view from a long-term perspective, 1936-2005," Finance and Economics Discussion Series 2007-35, Board of Governors of the Federal Reserve System (U.S.).
  2. Wood, Robert G & Corcoran, Mary E & Courant, Paul N, 1993. "Pay Differences among the Highly Paid: The Male-Female Earnings Gap in Lawyers' Salaries," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 417-41, July.
  3. Justin Wolfers, 2006. "Diagnosing Discrimination: Stock Returns and CEO Gender," NBER Working Papers 11989, National Bureau of Economic Research, Inc.
  4. Alicia C. Sasser, 2005. "Gender Differences in Physician Pay: Tradeoffs Between Career and Family," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
  5. Elizabeth Ty Wilde & Lily Batchelder & David T. Ellwood, 2010. "The Mommy Track Divides: The Impact of Childbearing on Wages of Women of Differing Skill Levels," NBER Working Papers 16582, National Bureau of Economic Research, Inc.
  6. Light, Audrey & Ureta, Manuelita, 1995. "Early-Career Work Experience and Gender Wage Differentials," Journal of Labor Economics, University of Chicago Press, vol. 13(1), pages 121-54, January.
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