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What Determines Wage Inequality Among Young German University Graduates?

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  • Nils Braakmann

    ()

    (Newcastle University)

Abstract

This paper investigates the gender wage gap among university graduates in their first job and five to six years into their careers using a representative survey among German university graduates. Results from standard decomposition techniques show that up to 83% of an initial 24% earnings disadvantage for women in the first job can be attributed to differences in endowments that are fixed at the time of labor market entry. Of these, fields of study play a dominant role and explain up to 70% of the earnings differential. Adding employer characteristics raises the explained part of the differential to 96%. The importance of unexplained factors increases after five to six years where 40% of the earnings gap remain unexplained even when controlling for detailed experience and employer characteristics.

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Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 233 (2013)
Issue (Month): 2 (March)
Pages: 130-158

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Handle: RePEc:jns:jbstat:v:233:y:2013:i:2:p:130-158
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Keywords: Gender wage gap; decomposition; field of study;

Find related papers by JEL classification:

  • 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
  • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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Cited by:

  1. Bünstorf, Guido & Krabel, Stefan, 2014. "Gender and Immigration: Double Negative Effects in the Labor Market Outcomes of University Graduates in Germany?," Annual Conference 2014 (Hamburg): Evidence-based Economic Policy 100290, Verein für Socialpolitik / German Economic Association.

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