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The evolution of educational wage differentials for women and men, from 1996 to 2019

Author

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  • Ordemann, Jessica
  • Pfeiffer, Friedhelm

Abstract

This paper studies the evolution of three higher education wage differentials from 1996 to 2019 in Germany, a period when significant changes in the educational composition of the workforce took place. Based on regression analysis and samples of male and female workers from the Socio-Economic Panel Study, the study finds that while all three educational wage differentials increased, workers graduating from universities experienced an inverted u-shape pattern, reaching a plateau between 2011 and 2015. We argue that the decline which began after 2015, and which is detectable as well in the occupational prestige scores, may have resulted from a relative educational upskilling of the workforce as well as changes in the subject-choice composition of graduates. We also document differences between East and West Germany that appear to level off over time. The paper concludes with open questions related to these findings and potential future developments.

Suggested Citation

  • Ordemann, Jessica & Pfeiffer, Friedhelm, 2021. "The evolution of educational wage differentials for women and men, from 1996 to 2019," ZEW Discussion Papers 21-066, ZEW - Leibniz Centre for European Economic Research.
  • Handle: RePEc:zbw:zewdip:21066
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    File URL: https://www.econstor.eu/bitstream/10419/242830/1/1770854878.pdf
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    Cited by:

    1. Jessica Ordemann & Friedhelm Pfeiffer, 2022. "The evolution of educational wage differentials for women and men in Germany, from 1996 to 2019," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 56(1), pages 1-12, December.

    More about this item

    Keywords

    Educational Wage Differentials; Gender Gaps; Higher Education Expansion; Occupational Prestige; Participation;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity

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