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

Author

Listed:
  • Ordemann, Jessica

    (German Centre for Higher Education Research and Science Studies (DZHW))

  • Pfeiffer, Friedhelm

    (ZEW Leibniz Centre for European Economic Research, Mannheim)

Abstract

"This paper studies the evolution of three higher education wage differentials from 1996 to 2019 in Germany. We distinguish between degrees from academic universities, degrees from universities of applied sciences, and the master craftsman\craftswoman certificate. The educational reference category is a standard degree within the German vocational education and training system. Based on samples of male and female workers from the Socio-Economic Panel Study (SOEP), regression methods show that all three educational wage differentials in 2019 exceeded the ones in 1996. However, workers graduating from universities experienced an inverse u-shape pattern with a maximum of about 0.5 log points around 2012. Since then, their wage differential decreased by nearly ten percent (about 0.045 log points). Although the decrease is not statistically significant at conventional levels, we think that nearly ten percent can be regarded as economically meaningful. We argue that this pattern is related to university expansion and changes in graduates’ subject-choice composition during that expansion. The paper concludes with a discussion of possible alternative explanations." (Author's abstract, IAB-Doku, © Springer-Verlag) ((en))

Suggested Citation

  • Ordemann, Jessica & Pfeiffer, Friedhelm, 2022. "The evolution of educational wage differentials for women and men in Germany, from 1996 to 2019," Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 56, pages 1-017.
    • Handle: RePEc:iab:iabjlr:v:56:i::p:a017
    DOI: 10.1186/s12651-022-00323-6
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    References listed on IDEAS

    as
    1. Backes-Gellner, Uschi & Herz, Holger & Kosfeld, Michael & Oswald, Yvonne, 2021. "Do preferences and biases predict life outcomes? Evidence from education and labor market entry decisions," European Economic Review, Elsevier, vol. 134(C).
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    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • I23 - Health, Education, and Welfare - - Education - - - Higher Education; Research Institutions
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education

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