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The Gender Gap in Early Career Wage Growth

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Author Info
Alan Manning
Joanna Swaffield

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Abstract

In the UK the gender pay gap on entry to the labour market is approximately zero but afterten years after labour market entry, there is a gender wage gap of almost 25 log points. Thispaper explores the reason for this gender gap in early-career wage growth, considering threemain hypotheses - human capital, job-shopping and 'psychological' theories. Human capitalfactors can explain about 12 log points, job-shopping about 1.5 log points and thepsychological theories about half a log point. But a substantial unexplained gap remains:women who have continuous full-time employment, have had no children and express nodesire to have them earn about 12 log points less than equivalent men after 10 years in thelabour market.

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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0700.

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Date of creation: Jul 2005
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Handle: RePEc:cep:cepdps:dp0700

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Related research
Keywords: Gender Pay Gap; Wage Growth;

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Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J7 - Labor and Demographic Economics - - Labor Discrimination

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Booth, Alison L., 2009. "Gender and Competition," IZA Discussion Papers 4300, Institute for the Study of Labor (IZA). [Downloadable!]
  2. Alan Manning & Farzad Saidi, 2008. "Understanding the Gender Pay Gap: Whats Competition Got to Do with It?," CEP Discussion Papers dp0898, Centre for Economic Performance, LSE. [Downloadable!]
  3. Alison L. Booth, 2006. "The Glass Ceiling in Europe: Why Are Women Doing Badly in the Labour Market?," CEPR Discussion Papers 542, Centre for Economic Policy Research, Research School of Social Sciences, Australian National University. [Downloadable!]
  4. Jurajda, Stepan & Münich, Daniel, 2008. "Gender Gap in Performance under Competitive Pressure," CEPR Discussion Papers 7059, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  5. Emilia Del Bono & Daniela Vuri, 2008. "Job Mobility and the Gender Wage Gap in Italy," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  6. Marianne Bertrand & Claudia Goldin & Lawrence F. Katz, 2009. "Dynamics of the Gender Gap for Young Professionals in the Corporate and Financial Sectors," NBER Working Papers 14681, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Sami Napari, 2006. "The Early Career Gender Wage Gap," CEP Discussion Papers dp0738, Centre for Economic Performance, LSE. [Downloadable!]
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