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Gender Segregation and Gender Wage Differences during the Early Labour Market Career

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  • Bechara, Peggy

Abstract

Using German linked employer-employee data this paper investigates the gender wage gap at the time of entering the labour market and its development during workers' early career. The analysis contributes to the existing research on gender wage differentials among young workers by providing evidence on the impact of women's disproportionate concentration in lower-paying industries, occupations, establishments and job-cells, i.e. occupations within establishments. The estimation results reveal that all types of segregation and particularly job-cell segregation are significant determinants of the gender wage gap, while skill endowments and differences in work histories are found to be of minor importance. At the time of labour market entry women's wage disadvantages can almost entirely be explained by the fact that they start their working career in lower-paying occupations and establishments. With progressing labour market experience, however, gender segregation becomes less important and cannot fully account for a slight widening of the wage differential among young men and women. Therefore, part of the early career wage gap remains unexplained.

Suggested Citation

  • Bechara, Peggy, 2012. "Gender Segregation and Gender Wage Differences during the Early Labour Market Career," Ruhr Economic Papers 352, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:352
    DOI: 10.4419/86788406
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    References listed on IDEAS

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    Cited by:

    1. Friederike Maier & Oliver Stettes & Monika Queisser, 2013. "Career Opportunities for Women and the Wage Gap: Is the "glass ceiling" Still a Reality or Already History?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(07), pages 03-11, April.
    2. Otto, Anne & Neu, Nathalie & Schieler, Manuel & Wydra-Somaggio, Gabriele, 2014. "Gender Pay Gap beim Berufseinstieg von Hochschulabsolventen," IAB-Regional. Berichte und Analysen aus dem Regionalen Forschungsnetz. IAB Rheinland-Pfalz-Saarland 201403, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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    More about this item

    Keywords

    Gender wage gap; early career; labour market segregation;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • 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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion

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