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Why do women’s wages increase so slowly throughout their career? A dynamic model of statistical discrimination

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  • Nathalie Havet

    ()
    (University of Lyon, Lyon, F-69003, France; CNRS, UMR 5824, GATE, Ecully, F-69130, France; ENS LSH, Lyon, F-69007, France ; Centre Leon Berard, Lyon, F-69003, France)

  • Catherine Sofer

    ()
    (Université Paris1-Panthéon-Sorbonne, and Paris School of Economics)

Abstract

The aim of this paper is to explain the growing wage differentials between men and women during their working careers. We provide a dynamic model of statistical discrimination, which integrates specific human capital decisions: on-the-job training investment and wages are endogenously determined. We reveal a small wage differential at the beginning of women’s career, followed by a larger wage differential; this is partly due to a lower level of human capital investment by women and partly because firms smooth training costs between different periods.

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Bibliographic Info

Paper provided by Groupe d'Analyse et de Théorie Economique (GATE), Centre national de la recherche scientifique (CNRS), Université Lyon 2, Ecole Normale Supérieure in its series Working Papers with number 0722.

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Length: 34 pages
Date of creation: Oct 2007
Date of revision:
Handle: RePEc:gat:wpaper:0722

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Keywords: gender gaps; gender wage gap; specific human capital; statistical discrimination;

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