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Non scholae, sed vitae discimus! - The importance of fields of study for the gender wage gap among German university graduates during labor market entry and the first years of their careers

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Author Info

  • Nils Braakmann

    ()
    (Institute of Economics, Leuphana University of Lüneburg)

Abstract

This paper investigates the gender wage gap among German university graduates in their first job and five to six years into their careers. We find that women earn about 30% less than men at their first job and about 35% less after five to six years. Results from standard decomposition techniques show that 80% of the earnings gap in the first job can be attributed to differences in endowment of which between 74 and 78% are related to different fields of studies. Adding employer information leads to an explained share of about 90% of the earnings gap with fields of study still accounting for about half of the gap. These also play a dominant role in a model without employer information after five to six years, directly explaining between 26 and 33% of the earnings gap. Adding employer information, however, leads to insignificant results. Together with detailed information on experiences after graduation, these variables account for about 44 to 50% of the earnings gap later in the graduates careers.

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Bibliographic Info

Paper provided by University of Lüneburg, Institute of Economics in its series Working Paper Series in Economics with number 85.

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Length: 39 pages
Date of creation: May 2008
Date of revision:
Handle: RePEc:lue:wpaper:85

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Web page: http://leuphana.de/institute/ivwl.html

Related research

Keywords: Gender wage gap; decomposition; field of study;

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References

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  1. Weichselbaumer, Doris & Winter-Ebmer, Rudolf, 2003. "A Meta-Analysis of the International Gender Wage Gap," IZA Discussion Papers 906, Institute for the Study of Labor (IZA).
  2. Brown, Charles & Corcoran, Mary, 1997. "Sex-Based Differences in School Content and the Male-Female Wage Gap," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 431-65, July.
  3. Sami Napari, 2006. "The early career gender wage gap," LSE Research Online Documents on Economics 19844, London School of Economics and Political Science, LSE Library.
  4. Joseph G. Altonji & Rebecca M. Blank, . "Race and Gender in the Labor Market," IPR working papers 98-18, Institute for Policy Resarch at Northwestern University.
  5. Formby, John P & Gunther, William D & Sakano, Ryoichi, 1993. "Entry Level Salaries of Academic Economists: Does Gender or Age Matter?," Economic Inquiry, Western Economic Association International, vol. 31(1), pages 128-38, January.
  6. Sami Napari, 2006. "The Early Career Gender Wage Gap," CEP Discussion Papers dp0738, Centre for Economic Performance, LSE.
  7. Machin, Stephen & Puhani, Patrick A., 2002. "Subject of Degree and the Gender Wage Differential: Evidence from the UK and Germany," IZA Discussion Papers 553, Institute for the Study of Labor (IZA).
  8. Barry Gerhart, 1990. "Gender differences in current and starting salaries: The role of performance, college major, and job title," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 43(4), pages 418-433, April.
  9. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  10. Dolton, P J & Makepeace, G H, 1986. "Sample Selection and Male-Female Earnings Differentials in the Graduate Labour Market," Oxford Economic Papers, Oxford University Press, vol. 38(2), pages 317-41, July.
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Cited by:
  1. Barbara S. Grave & Katja Goerlitz, 2012. "Wage differentials by field of study -- the case of German university graduates," Education Economics, Taylor & Francis Journals, vol. 20(3), pages 284-302, March.

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