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Wage Growth and Job Mobility in the Early Career: Testing a Statistical Discrimination Model of the Gender Wage Gap

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Author Info

  • Belley, Philippe

    ()
    (Kansas State University)

  • Havet, Nathalie

    ()
    (CNRS, GATE)

  • Lacroix, Guy

    ()
    (Université Laval)

Abstract

The paper focuses on the early career patterns of young male and female workers. It investigates potential dynamic links between statistical discrimination, mobility, tenure and wage profiles. The model assumes that it is more costly for an employer to assess female workers' productivity and that the noise/signal ratio tapers off more rapidly for male workers. These two assumptions yield numerous theoretical predictions pertaining to gender wage gaps. These predictions are tested using data from the 1979 cohort of the National Longitudinal Survey of Youth. As predicted by our statistical discrimination model, we find that men and women have the same wage at the start of their career, but that female wages grow at a slower rate, creating a gender wage gap. Also consistent with our model, we find that mean wages are higher for workers who keep their job, while wage growth is stronger for workers who change job.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6893.

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Length: 36 pages
Date of creation: Oct 2012
Date of revision:
Handle: RePEc:iza:izadps:dp6893

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Related research

Keywords: gender wage gap; job transitions; tenure; returns to mobility; experience;

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Cited by:
  1. Kaiser, Lutz C., 2014. "The Gender-Career Estimation Gap," IZA Discussion Papers 8185, Institute for the Study of Labor (IZA).
  2. Sloczynski, Tymon, 2013. "Population Average Gender Effects," IZA Discussion Papers 7315, Institute for the Study of Labor (IZA).

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