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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)

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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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Publisher 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
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Handle: RePEc:lue:wpaper:85

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

Find related papers by JEL classification:
J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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  1. Doris Weichselbaumer & Rudolf Winter-Ebmer, 2005. "A Meta-Analysis of the International Gender Wage Gap," Journal of Economic Surveys, Blackwell Publishing, vol. 19(3), pages 479-511, 07. [Downloadable!] (restricted)
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  2. 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, ILR School, Cornell University, vol. 43(4), pages 418-433, April.
  3. Sami Napari, 2006. "The Early Career Gender Wage Gap," CEP Discussion Papers dp0738, Centre for Economic Performance, LSE. [Downloadable!]
  4. Machin, Stephen & Puhani, Patrick A., 2003. "Subject of degree and the gender wage differential: evidence from the UK and Germany," Economics Letters, Elsevier, vol. 79(3), pages 393-400, June. [Downloadable!] (restricted)
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  5. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier. [Downloadable!] (restricted)
    Other versions:
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