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Gender Differences in Current and Starting Salaries: The Role of Performance, College Major, and Job Title

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  • Barry Gerhart

Abstract

This study examines starting and current salaries of exempt employees hired between 1976 and 1986 by a large, private firm. In 1986 the ratio of women's salaries to men's was 88%. With controls for year of hire, potential experience, degree, college major, firm tenure, performance, and job title, the ratio is 94–95% for the full sample and 97–98% for college graduates. Women's 1986 salary disadvantage can be traced largely to their salary disadvantage at the time of hire: with an adjustment for starting salary, the 1986 salary ratio rises to 96–99% for the full sample and 98–100% for college graduates. The apparently greater female disadvantage in starting salary than in subsequent salary growth may stem from the smaller amount of job-relevant information available on applicants than on current employees.

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  • Barry Gerhart, 1990. "Gender Differences in Current and Starting Salaries: The Role of Performance, College Major, and Job Title," ILR Review, Cornell University, ILR School, vol. 43(4), pages 418-433, July.
    • Handle: RePEc:sae:ilrrev:v:43:y:1990:i:4:p:418-433
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    Cited by:

    1. Kong, Wei-Hsin & Fu, Tsu-Tan, 2012. "Assessing the performance of business colleges in Taiwan using data envelopment analysis and student based value-added performance indicators," Omega, Elsevier, vol. 40(5), pages 541-549.
    2. Rassou R., 1993. "Statistical measurement of gender wage differentials," ILO Working Papers 992920693402676, International Labour Organization.
    3. Joshua D. Pitts & Charles Kroncke, 2014. "Educational Attainment and the Gender Wage Gap: A Comparison of Young Men and Women in 1984 and 2007," Forum for Social Economics, Taylor & Francis Journals, vol. 43(2), pages 123-155, August.
    4. Livanos, Ilias & Pouliakas, Konstantinos, 2009. "The Gender Wage Gap as a Function of Educational Degree Choices in an Occupationally Segregated EU Country," IZA Discussion Papers 4636, Institute of Labor Economics (IZA).
    5. Nils Braakmann, 2008. "Non scholae, sed vitae discimus! - The importance of fields of study for the gender wage gap among German university graduates during labor market entry and the first years of their careers," Working Paper Series in Economics 85, University of Lüneburg, Institute of Economics.
    6. Ilse Lindenlaub & Anja Prummer, 2014. "Gender, Social Networks And Performance," Cambridge Working Papers in Economics 1461, Faculty of Economics, University of Cambridge.
    7. Reimer, David & Schröder, Jette, 2006. "Tracing the gender wage gap: Income differences between male and female university graduates in Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(2), pages 235-253.
    8. Keser, Claudia & Müller, Stephan & Peterlé, Emmanuel & Rau, Holger A., 2018. "Bargaining and the role of negotiators' competitiveness," University of Göttingen Working Papers in Economics 341, University of Goettingen, Department of Economics.
    9. Marta M. Elvira & Mary E. Graham, 2002. "Not Just a Formality: Pay System Formalization and Sex-Related Earnings Effects," Organization Science, INFORMS, vol. 13(6), pages 601-617, December.
    10. Reimer, David & Schröder, Jette, 2006. "Tracing the gender wage gap: Income differences between male and female university graduates in Germany," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 39(2), pages 235-253.
    11. Mamiko Takeuchi, 2019. "Earnings gaps among higher-educated workers withinmain cities insemi-industrializedandnewly industrialized Asian countries," Discussion Papers in Economics and Business 19-06-Rev., Osaka University, Graduate School of Economics, revised Jul 2019.

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