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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

    ()
    (GATE - Groupe d'analyse et de théorie économique - CNRS : UMR5824 - Université Lumière - Lyon II - Ecole Normale Supérieure Lettres et Sciences Humaines)

  • Catherine Sofer

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)

Abstract

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

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Bibliographic Info

Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00193372.

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Date of creation: Oct 2007
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Handle: RePEc:hal:cesptp:halshs-00193372

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Keywords: Statistical discrimination; careers; male/female differentials; gender wage gap; specific human capital.;

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  6. Anne B. Royalty, 1996. "The effects of job turnover on the training of men and women," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(3), pages 505-521, April.
  7. Rosén, Åsa, 1998. "Search, Bargaining and Employer Discrimination," Working Paper Series, Uppsala University, Department of Economics 1998:13, Uppsala University, Department of Economics.
  8. Roland G. Fryer, Jr., 2006. "Belief Flipping in a Dynamic Model of Statistical Discrimination," NBER Working Papers 12174, National Bureau of Economic Research, Inc.
  9. John M. Barron & Dan A. Black & Mark A. Loewenstein, 1993. "Gender Differences in Training, Capital, and Wages," Journal of Human Resources, University of Wisconsin Press, vol. 28(2), pages 343-364.
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  17. Moro, Andrea & Norman, Peter, 2004. "A general equilibrium model of statistical discrimination," Journal of Economic Theory, Elsevier, Elsevier, vol. 114(1), pages 1-30, January.
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  22. Lundberg, Shelly J & Startz, Richard, 1983. "Private Discrimination and Social Intervention in Competitive Labor Markets," American Economic Review, American Economic Association, American Economic Association, vol. 73(3), pages 340-47, June.
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  29. repec:fth:coluec:454 is not listed on IDEAS
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