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Gender, Motivation, Experience and Wages

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  • Joanna Swaffield

Abstract

Using data from the British Household Panel Survey, 1991-97 this paper investigates the structure of the female wage equation and the gender wage differential. The discriminatory portion of the gender wage differential is overstated by over 40% when inadequate measures of female labour market experience are included in the wage equation. The degree of labour market motivation, aspirations and constraints are found to have a significant impact on the female wage. Moreover, the impact of time out of the labour market varies across gender, activity undertaken while out, labour market motivation and the degree of male occupational domination.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0457.

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Date of creation: May 2000
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Handle: RePEc:cep:cepdps:dp0457

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Related research

Keywords: Experience; motivation; unobserved heterogeneity; gender wage differentiation;

References

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  1. repec:ese:iserwp:97-17 is not listed on IDEAS
  2. repec:ese:iserwp:97-19 is not listed on IDEAS
  3. Hausman, Jerry A, 1978. "Specification Tests in Econometrics," Econometrica, Econometric Society, vol. 46(6), pages 1251-71, November.
  4. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  5. Clark, Andrew E. & Oswald, Andrew J., 1994. "Satisfaction and comparison income," CEPREMAP Working Papers (Couverture Orange) 9408, CEPREMAP.
  6. Rummery, Sarah, 1992. "The Contribution of Intermittent Labour Force Participation to the Gender Wage Differential," The Economic Record, The Economic Society of Australia, vol. 68(203), pages 351-64, December.
  7. Randall K. Filer, 1983. "Sexual Differences in Earnings: The Role of Individual Personalities and Tastes," Journal of Human Resources, University of Wisconsin Press, vol. 18(1), pages 82-99.
  8. Vella, Francis, 1994. "Gender Roles and Human Capital Investment: The Relationship between Traditional Attitudes and Female Labour Market Performance," Economica, London School of Economics and Political Science, vol. 61(242), pages 191-211, May.
  9. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  10. Vella, F., 1991. "Gender Roles, Occupational Choice and Gender Wage Differentials," Papers 235, Australian National University - Department of Economics.
  11. Susan Harkness, 1996. "The gender earnings gap: evidence from the UK," Fiscal Studies, Institute for Fiscal Studies, vol. 17(2), pages 1-36, May.
  12. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  13. Polachek, Solomon W. & Kim, Moon-Kak, 1994. "Panel estimates of the gender earnings gap : Individual-specific intercept and individual-specific slope models," Journal of Econometrics, Elsevier, vol. 61(1), pages 23-42, March.
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Citations

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Cited by:
  1. Alan Manning & Joanna Swaffield, 2005. "The Gender Gap in Early Career Wage Growth," CEP Discussion Papers dp0700, Centre for Economic Performance, LSE.
  2. Blackaby, David & Booth, Alison L & Frank, Jeff, 2002. "Outside Offers and the Gender Pay Gap: Empirical Evidence from the UK," CEPR Discussion Papers 3549, C.E.P.R. Discussion Papers.
  3. Michal Myck & Gillian Paull, 2001. "The role of employment experience in explaining the gender wage gap," IFS Working Papers W01/18, Institute for Fiscal Studies.
  4. McNabb, Robert & Wass, Victoria, 2006. "Male-female earnings differentials among lawyers in Britain: a legacy of the law or a current practice?," Labour Economics, Elsevier, vol. 13(2), pages 219-235, April.
  5. Filipe Almeida-Santos & Karen Mumford, 2006. "Employee Training, Wage Dispersion and Equality in Britain," Discussion Papers 06/14, Department of Economics, University of York.
  6. Mumford, Karen A. & Smith, Peter N., 2004. "The Gender Earnings Gap in Britain," IZA Discussion Papers 1109, Institute for the Study of Labor (IZA).
  7. David Campbell, 2002. "Interrupted Work Careers and the Starting Salaries of Female Workers in Britain," Studies in Economics 0204, Department of Economics, University of Kent.
  8. Giovanni Russo & Wolter Hassink, 2008. "The Part-Time Wage Gap: a Career Perspective," De Economist, Springer, vol. 156(2), pages 145-174, June.
  9. Muhamad Purnagunawan, 2008. "Earning Motivation and The Conventional Earning Function," Working Papers in Economics and Development Studies (WoPEDS) 200805, Department of Economics, Padjadjaran University, revised Sep 2008.

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