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The gender gap in early‐career wage growth

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  • Alan Manning
  • Joanna Swaffield

Abstract

In the UK the gender pay gap on entry to the labour market is approximately zero but ten years after labour market entry, there is a gender wage gap of almost 25 log points. This article explores the reason for this gender gap in early‐career wage growth, considering three main hypotheses – human capital, job‐shopping and ‘psychological’ theories. Human capital factors can explain about 11 log points, job‐shopping about 1.5 log points and the psychological theories up to 4.5 log points depending on the specification. But a substantial unexplained gap remains: women who have continuous full‐time employment, have had no children and express no desire to have them earn about 8 log points less than equivalent men after 10 years in the labour market.

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  • Alan Manning & Joanna Swaffield, 2008. "The gender gap in early‐career wage growth," Economic Journal, Royal Economic Society, vol. 118(530), pages 983-1024, July.
    • Handle: RePEc:wly:econjl:v:118:y:2008:i:530:p:983-1024
    DOI: 10.1111/j.1468-0297.2008.02158.x
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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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