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Career Plans and Expectations of Young Women and Men: The Earnings Gap and Labor Force Participation

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Author Info
Francine D. Blau

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Abstract

Using detailed information on the career plans and earnings expectations of college business school seniors, we test the hypothesis that women who plan to work intermittently choose jobs with lower rewards to work experience in return for lower penalties for labor force interruptions. We find that while men and women expect similar starting salaries, women anticipate considerably lower earnings in subsequent years, even under the assumption of continuous employment after leaving school. While it is also true that women in the sample plan to work fewer years than men, these differences do not explain the observed gender differences in expected earnings profiles. We also find no evidence that gender differences in expected earnings have any effect on the number of years these women plan to be in the labor market.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 3445.

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Date of creation: Sep 1990
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Handle: RePEc:nbr:nberwo:3445

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Randall K. Filer, 1985. "Male-female wage differences: The importance of compensating differentials," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 38(3), pages 426-437, April.
  2. Yoram Weiss, 1981. "Expected Interruptions in Labor Force Participation and Sex Related Differences in Earnings Growth," NBER Working Papers 0667, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Polachek, Solomon William, 1975. "Differences in Expected Post-school Investments as a Determinant of Market Wage Differentials," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 16(2), pages 451-70, June. [Downloadable!] (restricted)
  4. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S76-S108, Part II, . [Downloadable!] (restricted)
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  5. Polachek, Solomon William, 1981. "Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure," The Review of Economics and Statistics, MIT Press, vol. 63(1), pages 60-69, February. [Downloadable!] (restricted)
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  1. Orazem, Peter & Tesfatsion, Leigh, 2000. "Macrodynamic Implications of Income Transfer Policies for Human Capital Investment and School Effort," Staff General Research Papers 1683, Iowa State University, Department of Economics. [Downloadable!]
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  2. Voicu, Alexandru & Buddelmeyer, Hielke, 2003. "Children and Women's Participation Dynamics: Direct and Indirect Effects," IZA Discussion Papers 729, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Kathy Cannings & Sophie Mahseredjian & Claude Montmarquette, 1997. "How Do Young People Choose College Majors ?," CIRANO Working Papers 97s-38, CIRANO. [Downloadable!]
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  4. Dora L. Costa, 2000. "From Mill Town to Board Room: The Rise of Women's Paid Labor," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 101-122, Fall. [Downloadable!] (restricted)
    Other versions:
  5. Tim Sass & Jennifer Troyer, 1999. "Affirmative action, political representation, unions, and female police employment," Journal of Labor Research, Springer, vol. 20(4), pages 571-587, December. [Downloadable!] (restricted)
  6. BONOMO, Marco & GARCIA, René, 1997. "Tests of Conditional Asset Pricing Models in the Brazilian Stock Market," Cahiers de recherche 1997, Universite de Montreal, Departement de sciences economiques. [Downloadable!]
    Other versions:
  7. Julia Varga, 2001. "Earnings Expectations and Higher Education Enrolment Decisions in Hungary," Budapest Working Papers on the Labour Market 0110, Institute of Economics, Hungarian Academy of Sciences. [Downloadable!]
  8. Bisakha Sen, 2003. "Why do Women feel the way they do about market work: the role of familial, social and economic factors," Review of Social Economy, Taylor and Francis Journals, vol. 61(2), pages 211-234, June. [Downloadable!] (restricted)
  9. Schwieren,Christiane, 2003. "The gender wage gap – due to differences in efficiency wage effects or discrimination?," Research Memoranda 046, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]
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