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The Gender Gap in Early Career Wage Growth

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  • Alan Manning
  • Joanna Swaffield

Abstract

In the UK the gender pay gap on entry to the labour market is approximately zero but after ten years after labour market entry, there is a gender wage gap of almost 25 log points. This paper explores the reason for this gender gap in early-career wage growth, considering three main hypotheses - human capital, job-shopping and 'psychological' theories. Human capital factors can explain about 12 log points, job-shopping about 1.5 log points and the psychological 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 no desire to have them earn about 12 log points less than equivalent men after 10 years in the labour 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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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

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Keywords: Gender Pay Gap; Wage Growth;

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