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Gender Wage Gap in Expectations and Realizations

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Author Info

  • Filippin, Antonio

    ()
    (University of Milan)

  • Ichino, Andrea

    ()
    (European University Institute)

Abstract

This paper explores the extent to which the gender wage gap is anticipated by workers' expectations. Data collected among second year students of Bocconi University convey information about their wage expectations. Detailed controls allow a clean matching with a sample of Bocconi graduates providing information about their actual wages. The evidence shows that the gender gap implied by students' expectations one year after graduation is consistent with the gender gap implied by the earnings of their elder counterparts. There is instead a misperception of the gender gap later in the career after graduation because students expect the gender gap to be roughly constant while realizations indicate an increasing gap with experience, particularly for the relatively less skilled worker. There is also evidence that the gender gap at the beginning of a career is particularly high in the most recent cohorts and lower in the previous ones. Finally, our results suggest that the careers of females are characterized by "glass ceilings" in particular at high skill levels, and by "sticky floors" at the opposite end of the skill spectrum.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 825.

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Length: 23 pages
Date of creation: Jul 2003
Date of revision:
Publication status: published in: Labour Economics, 2005, 12 (1), 125-145
Handle: RePEc:iza:izadps:dp825

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Keywords: gender wage gap; expectations;

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References

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  1. Richard Blundell & Amanda Gosling & Hidehiko Ichimura & Costas Meghir, 2006. "Changes in the Distribution of Male and Female Wages Accounting for Employment Composition Using Bounds," CIRJE F-Series CIRJE-F-420, CIRJE, Faculty of Economics, University of Tokyo.
  2. Christopher Erickson & Andrea Ichino, 1995. "Wage Differentials in Italy: Market Forces, Institutions, and Inflation," NBER Chapters, in: Differences and Changes in Wage Structures, pages 265-306 National Bureau of Economic Research, Inc.
  3. Filippin, Antonio, 2003. "Discrimination and Workers' Expectations," IZA Discussion Papers 823, Institute for the Study of Labor (IZA).
  4. Kunze, Astrid, 2002. "Gender Differences in Entry Wages and Early Career Wages," IZA Discussion Papers 626, Institute for the Study of Labor (IZA).
  5. Gubta, Nabanita Datta & Oaxaca, Ronald L. & Smith, Nina, 2002. "Swimming Upstream, Floating Downstream: Trends in the U.S. and Danish Gender Wage Gaps," CLS Working Papers 01-6, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
  6. Antonio Filippin, 2003. "Discrimination and workers' expectations: experimental evidence," Departmental Working Papers 2003-16, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  7. Blau, Francine D & Kahn, Lawrence M, 1997. "Swimming Upstream: Trends in the Gender Wage Differential in 1980s," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 1-42, January.
  8. Light, Audrey & Ureta, Manuelita, 1995. "Early-Career Work Experience and Gender Wage Differentials," Journal of Labor Economics, University of Chicago Press, vol. 13(1), pages 121-54, January.
  9. Stewart, Mark B, 1982. "On Least Squares Estimation when the Dependent Variable is Grouped," The Warwick Economics Research Paper Series (TWERPS) 207, University of Warwick, Department of Economics.
  10. Richard Breen & Cecilia Garcia-Penalosa, 2002. "Bayesian Learning and Gender Segregation," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 899-922, October.
  11. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, vol. 63(250), pages S29-62, Suppl..
  12. Brunello, Giorgio & Lucifora, Claudio & Winter-Ebmer, Rudolf, 2001. "The Wage Expectations of European College Students," IZA Discussion Papers 299, Institute for the Study of Labor (IZA).
  13. Loprest, Pamela J, 1992. "Gender Differences in Wage Growth and Job Mobility," American Economic Review, American Economic Association, vol. 82(2), pages 526-32, May.
  14. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2003. "A sticky floors model of promotion, pay, and gender," European Economic Review, Elsevier, vol. 47(2), pages 295-322, April.
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Citations

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Cited by:
  1. Garibaldi, Pietro & Giavazzi, Francesco & Ichino, Andrea & Rettore, Enrico, 2007. "College Cost and Time to Complete a Degree: Evidence from Tuition Discontinuities," CEPR Discussion Papers 6106, C.E.P.R. Discussion Papers.
  2. Antonio Filippin, 2003. "Discrimination and workers' expectations: experimental evidence," Departmental Working Papers 2003-16, Department of Economics, Management and Quantitative Methods at Università degli Studi di Milano.
  3. Mohamed Jellal & Christophe Nordman & Francois-Charles Wolff, 2008. "Evidence on the glass ceiling effect in France using matched worker-firm data," Applied Economics, Taylor & Francis Journals, vol. 40(24), pages 3233-3250.
  4. Filippin, Antonio & Paccagnella, Marco, 2012. "Family background, self-confidence and economic outcomes," Economics of Education Review, Elsevier, vol. 31(5), pages 824-834.
  5. Filippin, Antonio, 2003. "Discrimination and Workers' Expectations," IZA Discussion Papers 823, Institute for the Study of Labor (IZA).
  6. Pastore, Francesco, 2009. "The Gender Gap in Early Career in Mongolia," IZA Discussion Papers 4480, Institute for the Study of Labor (IZA).
  7. Alewell, Dorothea & Pull, Kerstin, 2005. "Rechtsschutz für Mütter : eine ökonomische Analyse des Mutterschutzgesetzes und seiner Wirkungen auf die Beschäftigungssituation von Frauen (Legal protection for mothers * an economic analysis of ," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 38(2/3), pages 341-356.
  8. repec:iab:iabzaf:v:38:i:2/3:p:341-356 is not listed on IDEAS
  9. Palomino, Frédéric & Peyrache, Eloïc-Anil, 2010. "Psychological bias and gender wage gap," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 563-573, December.

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