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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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Author Info
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 Panthéon-Sorbonne - Paris I, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)

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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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Publisher Info
Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00193372_v1.

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Date of creation: Oct 2007
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Handle: RePEc:hal:cesptp:halshs-00193372_v1

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

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