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Gender differences in early-career wage growth

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  • Napari, Sami

Abstract

In Finnish manufacturing, the gender wage gap more than doubles during the first ten years in the labour market. This paper studies the factors contributing to the gender gap in early-career wage growth. The analysis shows that the size of the gender gap in average wage growth varies with mobility status, the gap being higher with employer changes compared to wage growth within firms. Several explanations for the gender gap in wage growth based on human capital theory and theory of compensating wage differentials are considered. However, much of the gap in wage growth remains unexplained. The distributional analysis of the wage growth shows that the female wage penalty increases significantly as we move along the conditional wage growth distribution, the increase being stronger with employer changes compared to within-firm wage growth.

Suggested Citation

  • Napari, Sami, 2009. "Gender differences in early-career wage growth," Labour Economics, Elsevier, vol. 16(2), pages 140-148, April.
    • Handle: RePEc:eee:labeco:v:16:y:2009:i:2:p:140-148
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    3. Samuel Dodini & Kjell G. Salvanes & Alexander Willén & Li Zhu & Alexander L.P. Willén, 2023. "The Career Effects of Union Membership," CESifo Working Paper Series 10469, CESifo.
    4. Kjell G. Salvanes & Barton Willage & Alexander Willén, 2024. "The Effect of Labor Market Shocks across the Life Cycle," Journal of Labor Economics, University of Chicago Press, vol. 42(1), pages 121-160.
    5. Wydra-Somaggio, Gabriele & Höchst, Michael, 2018. "Regionaler Gender Pay Gap : Analyse der geschlechtsspezifischen Entgeltunterschiede im Saarland," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Rheinland-Pfalz-Saarland 201802, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Wydra-Somaggio, Gabriele & Höchst, Michael, 2018. "Regionaler Gender Pay Gap : Analyse der geschlechtsspezifischen Entgeltunterschiede in Rheinland-Pfalz," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Rheinland-Pfalz-Saarland 201801, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Rita Asplund & Sami Napari, 2011. "Intangibles and the Gender Wage Gap: An Analysis of Gender Wage Gaps Across Occupations in the Finnish Private Sector," Journal of Labor Research, Springer, vol. 32(4), pages 305-325, December.
    8. Merja Kauhanen & Sami Napari, 2010. "Wage Growth and Mobility Between and Within Firms by Gender and Education," Working Papers 260, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    9. Jed DeVaro & Antti Kauhanen & Nelli Valmari, 2019. "Internal and External Hiring," ILR Review, Cornell University, ILR School, vol. 72(4), pages 981-1008, August.
    10. Shamim Ara, 2021. "Gender Pay Gap in India: Evidence from Urban Labour Market," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 64(2), pages 415-445, June.
    11. Combet, Benita & Oesch, Daniel, 2019. "The Gender Wage Gap Opens Long before Motherhood. Panel Evidence on Early Careers in Switzerland," SocArXiv sazxj, Center for Open Science.

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