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What Determines Wage Inequality Among Young German University Graduates?

  • Nils Braakmann

    ()

    (Newcastle University)

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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  29. Nils Braakmann, 2010. "Fields of Training, Plant Characteristics and the Gender Wage Gap in Entry Wages Among Skilled Workers - Evidence from German Administrative Data," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 230(1), pages 27-41, February.
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