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Geography and Gender: Variation in the Gender Earnings Ratio Across U.S. States

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  • Saul D. Hoffman

Abstract

type="main"> The gender earnings ratio for year-round full-time (YRFT) workers varies substantially across U.S. states, with a range of 24 percentage points. I examine the sources of this variation to assess to what extent it reflects compositional differences by gender that vary across state and/or nonneutral effects of state of residence on gender earnings. Using CPS data, I estimate earnings models for men and women that incorporate state fixed effects in addition to standard human capital and demographic variables. I use those estimates to compute unadjusted and regression-adjusted estimates of the impact of state residence on the gender earnings ratio. I find that nonneutral gender-specific state effects on earnings exist even after controlling for other determinants of earnings and that state of residence appears, therefore, to have a genuine effect on the gender earnings ratio. I also find that states with particularly low overall gender earnings ratios have consistently low ratios even within quite detailed education and occupation categories. Variation in the gender earnings ratio for YRFT workers across states is not simply a result of compositional differences. It is unclear, however, what policy instruments or other factors account for these differences.

Suggested Citation

  • Saul D. Hoffman, 2015. "Geography and Gender: Variation in the Gender Earnings Ratio Across U.S. States," Social Science Quarterly, Southwestern Social Science Association, vol. 96(1), pages 235-250, March.
    • Handle: RePEc:bla:socsci:v:96:y:2015:i:1:p:235-250
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    References listed on IDEAS

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    1. Blau, Francine D & Kahn, Lawrence M, 1997. "Swimming Upstream: Trends in the Gender Wage Differential in 1980s," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 1-42, January.
    2. Jane Waldfogel, 1998. "Understanding the "Family Gap" in Pay for Women with Children," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 137-156, Winter.
    3. Goldin, Claudia, 1992. "Understanding the Gender Gap: An Economic History of American Women," OUP Catalogue, Oxford University Press, number 9780195072709.
    4. Mary Corcoran & Greg J. Duncan, 1979. "Work History, Labor Force Attachment, and Earnings Differences between the Races and Sexes," Journal of Human Resources, University of Wisconsin Press, vol. 14(1), pages 3-20.
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