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Why Do Women's Wages Increase So Slowly Throughout Their Career? A Dynamic Model of Statistical Discrimination

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Author Info
Nathalie Havet
Catherine Sofer

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Abstract

The aim of this paper is to explain the growing wage differentials between men and women during their working careers. We provide a dynamic model of statistical discrimination, which integrates specific human capital decisions: on-the-job training investment and wages are endogenously determined. We reveal a small wage differential at the beginning of women's career, but women's wages increase more slowly; this is partly due to a lower level of human capital investment by women and partly because firms smooth training costs between different periods. Copyright 2008 The Authors. Journal compilation CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd. 2008.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9914.2008.00409.x
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Publisher Info
Article provided by CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd in its journal LABOUR.

Volume (Year): 22 (2008)
Issue (Month): 2 (06)
Pages: 291-314
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Handle: RePEc:bla:labour:v:22:y:2008:i:2:p:291-314

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This page was last updated on 2008-9-29.


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