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Getting Ahead: The Determinants of and Payoffs to Internal Promotion for Young U.S. Men and Women

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Author Info
Cobb-Clark, Deborah A. () (SPEAR Centre, RSSS, Australian National University, Canberra and IZA, Bonn)

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Abstract

Using data from the National Longitudinal Survey of Youth, this paper examines the role of gender in the promotion process and the importance of promotions in the relative labor market outcomes of young men and women in their early careers. Specifically, how do the factors related to promotion differ for men and women? How do gender differences in promotion translate into differences in subsequent wage growth? To what extent does the promotions gap contribute to the gender wage gap? In answering these questions, alternative definitions of "promotion" will be considered. Getting ahead matters - particularly for women. The results indicate that women are less likely to be promoted. This gender gap in promotions - the magnitude of which depends on the measure of promotion considered - is explained by differences in the returns to characteristics. Had men and women in our sample faced the same promotion standard, promotion rates would have been higher for women than for men. Furthermore, the share of overall wage growth attributable to promotion is much larger for women than for men reflecting a bifurcation in outcomes between women who get ahead and women who get left behind. Eliminating gender differences in the determinants of and wage payoffs to promotion would contribute to a narrowing of the gender wage gap.

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 288.

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Length: 47 pages
Date of creation: Apr 2001
Date of revision:
Handle: RePEc:iza:izadps:dp288

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Related research
Keywords: Promotion; gender; wage growth;

Other versions of this item:

Find related papers by JEL classification:
J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion

Cited by:
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  1. Francine Blau & Jed DeVaro, 2006. "New Evidence on Gender Differences in Promotion Rates: An Empirical Analysis of a Sample of New Hires," Working Papers 891, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
    Other versions:
  2. Alan Manning & Joanna Swaffield, 2005. "The Gender Gap in Early Career Wage Growth," CEP Discussion Papers dp0700, Centre for Economic Performance, LSE. [Downloadable!]
    Other versions:
  3. repec:ese:iserwp: is not listed on IDEAS
  4. Booth, Alison L., 2009. "Gender and Competition," IZA Discussion Papers 4300, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Van Kerm, Philippe, 2009. "Generalized measures of wage differentials," IRISS Working Paper Series 2009-08, IRISS at CEPS/INSTEAD. [Downloadable!]
  6. Chris Doucouliagos & Phillip Hone & Mehmet Ulubasoglu, 2006. "Discrimination, Peformance and Career Progression in Australian Public Sector Labor Markets," Economics Series 2006_07, Deakin University, Faculty of Business and Law, School of Accounting, Economics and Finance. [Downloadable!]
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This page was last updated on 2009-12-7.


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