IDEAS home Printed from https://ideas.repec.org/a/eee/ecmode/v83y2019icp372-383.html
   My bibliography  Save this article

Expected work experience and the gender wage gap: A new human capital measure

Author

Listed:
  • Zveglich, Joseph E.
  • van der Meulen Rodgers, Yana
  • Laviña, Editha A.

Abstract

Work experience is a key variable in earnings function estimates and wage gap decompositions. Because data on actual work experience are rare, studies commonly use proxies, such as potential experience. But potential experience is identical for all individuals of the same age and level of education, so it ignores labor market intermittency because of childbirth and child rearing—a critical omission when analyzing gender differences in earnings. This paper constructs a better proxy: expected work experience, which is the sum of the annual probabilities that an individual worked in the past. This measure can be generated using commonly available data on labor force participation rates by age and gender to gauge the probability of past work. Applying the measure to labor force survey data from the Philippines shows that conventional proxies underestimate the contribution of gender differences in work experience in explaining the gender wage gap.

Suggested Citation

  • Zveglich, Joseph E. & van der Meulen Rodgers, Yana & Laviña, Editha A., 2019. "Expected work experience and the gender wage gap: A new human capital measure," Economic Modelling, Elsevier, vol. 83(C), pages 372-383.
    • Handle: RePEc:eee:ecmode:v:83:y:2019:i:c:p:372-383
    DOI: 10.1016/j.econmod.2019.09.003
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0264999318317243
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.econmod.2019.09.003?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Brenda Gannon & Robert Plasman & Francois Rycx & Ilan Tojerow, 2007. "Inter-Industry Wage Differentials and the Gender Wage Gap: Evidence from European Countries," The Economic and Social Review, Economic and Social Studies, vol. 38(1), pages 135-155.
    2. repec:ulb:ulbeco:2013/138902 is not listed on IDEAS
    3. Arusha Cooray & Nabamita Dutta & Sushanta Mallick, 2016. "Does female human capital formation matter for the income effect of remittances? Evidence from developing countries," Oxford Development Studies, Taylor & Francis Journals, vol. 44(4), pages 458-478, October.
    4. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    5. Jacob Mincer & Solomon Polachek, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Marriage, Family, Human Capital, and Fertility, pages 76-110, National Bureau of Economic Research, Inc.
    6. Manasan, Rosario G., 2009. "Reforming Social Protection Policy: Responding to the Global Financial Crisis and Beyond," Discussion Papers DP 2009-22, Philippine Institute for Development Studies.
    7. Francine D. Blau & Lawrence M. Kahn, 2013. "The Feasibility and Importance of Adding Measures of Actual Experience to Cross-Sectional Data Collection," Journal of Labor Economics, University of Chicago Press, vol. 31(S1), pages 17-58.
    8. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters, in: Schooling, Experience, and Earnings, pages 1-4, National Bureau of Economic Research, Inc.
    9. Tracy Regan & Ronald Oaxaca, 2009. "Work experience as a source of specification error in earnings models: implications for gender wage decompositions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(2), pages 463-499, April.
    10. Francine D. Blau & Lawrence M. Kahn, 2003. "Understanding International Differences in the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 106-144, January.
    11. Appleton, Simon & Hoddinott, John & Krishnan, Pramila, 1999. "The Gender Wage Gap in Three African Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 47(2), pages 289-312, January.
    12. Chris Sakellariou, 2004. "The use of quantile regressions in estimating gender wage differentials: a case study of the Philippines," Applied Economics, Taylor & Francis Journals, vol. 36(9), pages 1001-1007.
    13. Sushanta K. MALLICK & Ricardo M. SOUSA, 2017. "The skill premium effect of technological change: New evidence from United States manufacturing," International Labour Review, International Labour Organization, vol. 156(1), pages 113-131, March.
    14. Futoshi Yamauchi & Yanyan Liu, 2018. "Gender asymmetries: Impacts of an early†stage school intervention in the Philippines," Review of Development Economics, Wiley Blackwell, vol. 22(1), pages 220-241, February.
    15. Heather Antecol & Kelly Bedard, 2004. "The Racial Wage Gap: The Importance of Labor Force Attachment Differences across Black, Mexican, and White Men," Journal of Human Resources, University of Wisconsin Press, vol. 39(2).
    16. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1, March.
    17. Joseph E. Zveglich & Yana van der Meulen Rodgers, 2003. "The Impact of Protective Measures for Female Workers," Journal of Labor Economics, University of Chicago Press, vol. 21(3), pages 533-556, July.
    18. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    19. Arusha Cooray & Sushanta Mallick & Nabamita Dutta, 2014. "Gender-specific Human Capital, Openness and Growth: Exploring the Linkages for South Asia," Review of Development Economics, Wiley Blackwell, vol. 18(1), pages 107-122, February.
    20. Kristin Mammen & Christina Paxson, 2000. "Women's Work and Economic Development," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 141-164, Fall.
    21. Stephan Klasen & Francesca Lamanna, 2009. "The Impact of Gender Inequality in Education and Employment on Economic Growth: New Evidence for a Panel of Countries," Feminist Economics, Taylor & Francis Journals, vol. 15(3), pages 91-132.
    22. Derek Hum & Wayne Simpson, 2004. "Reinterpreting the performance of immigrant wages from panel data," Empirical Economics, Springer, vol. 29(1), pages 129-147, January.
    23. Jacob Mincer, 1958. "Investment in Human Capital and Personal Income Distribution," Journal of Political Economy, University of Chicago Press, vol. 66, pages 281-281.
    24. repec:ulb:ulbeco:2013/134392 is not listed on IDEAS
    25. van der Meulen Rodgers, Yana & Menon, Nidhiya, 2012. "Impact of the 2008–2009 Twin Economic Crises on the Philippine Labor Market," World Development, Elsevier, vol. 40(11), pages 2318-2328.
    26. Jacob A. Mincer, 1974. "Schooling and Earnings," NBER Chapters, in: Schooling, Experience, and Earnings, pages 41-63, National Bureau of Economic Research, Inc.
    27. Joseph E. Zveglich Jr. & Yana van der Meulen Rodgers & William M. Rodgers III, 1997. "The Persistence of Gender Earnings Inequality in Taiwan, 1978–1992," ILR Review, Cornell University, ILR School, vol. 50(4), pages 594-609, July.
    28. Randall K. Filer, 1993. "The Usefulness of Predicted Values for Prior Work Experience in Analyzing Labor Market Outcomes for Women," Journal of Human Resources, University of Wisconsin Press, vol. 28(3), pages 519-537.
    29. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rouselle F. LAVADO & Keiko NOWACKA & David A. RAITZER & Yana van der Meulen RODGERS & Joseph E. ZVEGLICH, 2022. "COVID‐19 disparities by gender and income: Evidence from the Philippines," International Labour Review, International Labour Organization, vol. 161(1), pages 107-123, March.
    2. Kenneth A. Couch & Robert W. Fairlie & Huanan Xu, 2022. "The evolving impacts of the COVID‐19 pandemic on gender inequality in the US labor market: The COVID motherhood penalty," Economic Inquiry, Western Economic Association International, vol. 60(2), pages 485-507, April.
    3. Yana Van Der Meulen Rodgers & Joseph E. Zveglich, 2021. "Gender Differences in Access to Health Care among the Elderly: Evidence from Southeast Asia," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 38(02), pages 59-92, September.
    4. Bonaccolto-Töpfer, Marina & Castagnetti, Carolina & Prümer, Stephanie, 2022. "Understanding the public-private sector wage gap in Germany: New evidence from a Fixed Effects quantile Approach∗," Economic Modelling, Elsevier, vol. 116(C).
    5. Oswald-Egg, Maria Esther & Renold, Ursula, 2021. "No experience, no employment: The effect of vocational education and training work experience on labour market outcomes after higher education," Economics of Education Review, Elsevier, vol. 80(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Günalp, Burak & Cilasun, Seyit Mümin & Acar, Elif Öznur, 2013. "Male-Female Labor Market Participation and the Extent of Gender-Based Wage Discrimination in Turkey," MPRA Paper 51503, University Library of Munich, Germany.
    2. Braga, Breno, 2018. "Earnings dynamics: The role of education throughout a worker’s career," Labour Economics, Elsevier, vol. 52(C), pages 83-97.
    3. Mustafizur Rahman & Marzuka Md. Al-Hasan, 2019. "Women in Bangladesh Labour Market: Determinants of Participation, Gender Wage Gap and Returns to Schooling," CPD Working Paper 124, Centre for Policy Dialogue (CPD).
    4. Solomon W. Polachek & Jun Xiang, 2009. "The Gender Pay Gap across Countries: A Human Capital Approach," SOEPpapers on Multidisciplinary Panel Data Research 227, DIW Berlin, The German Socio-Economic Panel (SOEP).
    5. Stefan Gravemeyer & Thomas Gries & Jinjun Xue, 2011. "Income Determination and Income Discrimination in Shenzhen," Urban Studies, Urban Studies Journal Limited, vol. 48(7), pages 1457-1475, May.
    6. Pandelis Mitsis, 2020. "Assessing the gender wage gap in the culinary occupations in Cyprus," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 14(2), pages 31-49, December.
    7. Stefan Gravemeyer & Thomas Gries & Jinjun Xue, 2008. "Discrimination, Income Determination and Inequality – The case of Shenzhen," Working Papers CIE 16, Paderborn University, CIE Center for International Economics.
    8. Christophe J. Nordman & François Roubaud, 2009. "Reassessing the Gender Wage Gap in Madagascar: Does Labor Force Attachment Really Matter?," Economic Development and Cultural Change, University of Chicago Press, vol. 57(4), pages 785-808, July.
    9. Aleksandra Majchrowska & Paweł Strawiński & Karolina Konopczak & Agnieszka Skierska, 2014. "Why are women paid less than men? An investigation into gender wage gap in Poland," Working Papers 2014-31, Faculty of Economic Sciences, University of Warsaw.
    10. Tim Leunig & Maria Stanfors, 2010. "Piece-rates and prosperity: evidence from the late nineteenth-century tobacco industry," Working Papers 10003, Economic History Society.
    11. Filipe Almeida-Santos & Yekaterina Chzhen & Karen Mumford, 2010. "Employee training and wage dispersion: white- and blue-collar workers in Britain," Research in Labor Economics, in: Jobs, Training, and Worker Well-being, pages 35-60, Emerald Group Publishing Limited.
    12. Necker, Sarah & Voskort, Andrea, 2014. "Intergenerational transmission of risk attitudes – A revealed preference approach," European Economic Review, Elsevier, vol. 65(C), pages 66-89.
    13. Boll Christina & Wolf André & Rossen Anja, 2017. "The EU Gender Earnings Gap: Job Segregation and Working Time as Driving Factors," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 237(5), pages 407-452, October.
    14. Polachek, Solomon W., 2008. "Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.
    15. Christophe Nordman & François Roubaud, 2005. "Reassessing the Gender Wage Gap: Does Labour Force Attachment Really Matter? Evidence from Matched Labour Force and Biographical Surveys in Madagascar," Working Papers 16, ECINEQ, Society for the Study of Economic Inequality.
    16. Dileni Gunewardena & Darshi Abeyrathna & Amalie Ellagala & Kamani Rajakaruna & Shobana Rajendran, 2008. "Glass Ceilings, Sticky Floors or Sticky Doors? A Quantile Regression Approach to Exploring Gender Wage Gaps in Sri Lanka," Working Papers PMMA 2008-04, PEP-PMMA.
    17. Gomes, Magno Rogério & Souza, Solange de Cássia Inforzato de & Mantovani, Gabriela Gomes & Paiva, Vanessa Fortunato de, 2020. "Wage gap decomposition models: A methodological contribution," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 39(2), March.
    18. Ferreira Freire Guimarães, Carla Regina & Silva, Joaquim Ramos, 2016. "Pay gap by gender in the tourism industry of Brazil," Tourism Management, Elsevier, vol. 52(C), pages 440-450.
    19. Garcia-Aracil, Adela & Winter, Carolyn, 2006. "Gender and ethnicity differentials in school attainment and labor market earnings in Ecuador," World Development, Elsevier, vol. 34(2), pages 289-307, February.
    20. M. Ángeles Díaz & Rosario Sánchez, 2013. "Young Workers, Marital Status And Wage Gap," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 21(1), pages 57-70, Spring.

    More about this item

    Keywords

    Potential experience; Gender wage gap; Philippines; Women’s relative earnings; Wage regressions;
    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
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecmode:v:83:y:2019:i:c:p:372-383. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30411 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.