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Gender wage gap in expectations and realizations

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  • Filippin, Antonio
  • Ichino, Andrea

Abstract

This paper explores the extent to which the gender wage gap is anticipated by workers' expectations. Data collected among second year students of Bocconi University convey information about their wage expectations. Detailed controls allow a clean matching with a sample of Bocconi graduates providing information about their actual wages. The evidence shows that the gender gap implied by students' expectations one year after graduation is consistent with the gender gap implied by the earnings of their elder counterparts. There is instead a misperception of the gender gap later in the career after graduation because students expect the gender gap to be roughly constant while realizations indicate an increasing gap with experience, particularly for the relatively less skilled worker. There is also evidence that the gender gap at the beginning of a career is particularly high in the most recent cohorts and lower in the previous ones. Finally, our results suggest that the careers of females are characterized by "glass ceilings" in particular at high skill levels, and by "sticky floors" at the opposite end of the skill spectrum.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 12 (2005)
Issue (Month): 1 (February)
Pages: 125-145

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Handle: RePEc:eee:labeco:v:12:y:2005:i:1:p:125-145

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References

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  1. Richard Blundell & Amanda Gosling & Hidehiko Ichimura & Costas Meghir, 2006. "Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds," CIRJE F-Series CIRJE-F-420, CIRJE, Faculty of Economics, University of Tokyo.
  2. Christopher L. Erikson & Andrea Ichino, 1994. "Wage Differentials in Italy: Market Forces, Institutions, and Inflation," NBER Working Papers 4922, National Bureau of Economic Research, Inc.
  3. Filippin, Antonio, 2003. "Discrimination and Workers' Expectations: Experimental Evidence," IZA Discussion Papers 824, Institute for the Study of Labor (IZA).
  4. 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.
  5. Filippin, Antonio, 2003. "Discrimination and Workers' Expectations," IZA Discussion Papers 823, Institute for the Study of Labor (IZA).
  6. Gubta, Nabanita Datta & Oaxaca, Ronald L. & Smith, Nina, 2002. "Swimming Upstream, Floating Downstream: Trends in the U.S. and Danish Gender Wage Gaps," CLS Working Papers 01-6, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
  7. Astrid KUNZE, 2003. "Gender Differences in Entry Wages and Early Career Wages," Annales d'Economie et de Statistique, ENSAE, issue 71-72, pages 245-265.
  8. Giorgio Brunello & Claudio Lucifora & Rudolf Winter-Ebmer, 2001. "The wage expectations of European college students," Economics working papers 2001-08, Department of Economics, Johannes Kepler University Linz, Austria.
  9. Stewart, Mark B, 1983. "On Least Squares Estimation When the Dependent Variable Is Grouped," Review of Economic Studies, Wiley Blackwell, vol. 50(4), pages 737-53, October.
  10. Loprest, Pamela J, 1992. "Gender Differences in Wage Growth and Job Mobility," American Economic Review, American Economic Association, vol. 82(2), pages 526-32, May.
  11. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2003. "A sticky floors model of promotion, pay, and gender," European Economic Review, Elsevier, vol. 47(2), pages 295-322, April.
  12. 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.
  13. Richard Breen & Cecilia Garcia-Penalosa, 2002. "Bayesian Learning and Gender Segregation," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 899-922, October.
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Citations

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Cited by:
  1. Filippin, Antonio, 2003. "Discrimination and Workers' Expectations: Experimental Evidence," IZA Discussion Papers 824, Institute for the Study of Labor (IZA).
  2. Palomino, Frédéric & Peyrache, Eloïc-Anil, 2010. "Psychological bias and gender wage gap," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 563-573, December.
  3. Francesco Giavazzi & Pietro Garibaldi & Andrea Ichino & Enrico Rettore, 2009. "College cost and time to complete a degree: Evidence from tuition discontinuities," Working Papers 354, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  4. Antonio Filippin, 2003. "Discrimination and workers' expectations," Departmental Working Papers 2003-15, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  5. Pastore, Francesco, 2009. "The Gender Gap in Early Career in Mongolia," IZA Discussion Papers 4480, Institute for the Study of Labor (IZA).
  6. Jellal, Mohamed & Nordman, Christophe Jalil & Wolff, François-Charles, 2008. "Evidence on the glass ceiling effect in France using matched worker-firm data," Economics Papers from University Paris Dauphine 123456789/4377, Paris Dauphine University.
  7. Antonio Filippin & Marco Paccagnella, 2012. "Family background, self-confidence and economic outcomes," Temi di discussione (Economic working papers) 875, Bank of Italy, Economic Research and International Relations Area.
  8. Alewell, Dorothea & Pull, Kerstin, 2005. "Rechtsschutz für Mütter : eine ökonomische Analyse des Mutterschutzgesetzes und seiner Wirkungen auf die Beschäftigungssituation von Frauen (Legal protection for mothers * an economic analysis of ," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 341-356.
  9. repec:iab:iabzaf:v:38:i:2/3:p:341-356 is not listed on IDEAS

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