Geography And Gender: Why Does the Gender Earnings Ratio Vary Across U.S. States?
The gender earnings ratio for year-round full-time workers varies substantially across U.S. states, with a range of 24 percentage points. I examine the source of this variation to assess whether it is genuine or reflects compositional differences that vary across state. Using CPS data, I estimate earnings models for men and women that incorporate state fixed effects in addition to standard human capital and demographic variables. I use those estimates to compute unadjusted and regression-adjusted estimates of the impact of state residence on the gender earnings ratio. I find that non-neutral gender-specific state effects on earnings persist even after control for other determinants of earnings and that states appear, therefore, to have a genuine effect on the gender earnings ratio. States with particularly low overall gender earnings ratios have consistently low ratios even within quite detailed education and occupation categories.
|Date of creation:||2013|
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