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When Women Out-Earn Men

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Abstract

We often hear that women earn “77 cents on the dollar” compared with men. However, the gender pay gap among recent college graduates is actually much smaller than this figure suggests. We estimate that among recent college graduates, women earn roughly 97 cents on the dollar compared with men who have the same college major and perform the same jobs. Moreover, what may be surprising is that at the start of their careers, women actually out-earn men by a substantial margin for a number of college majors. However, our analysis shows that as workers approach mid-career, the wage premium that young women enjoy in these majors completely disappears, and males earn a more substantial premium in nearly every major. We discuss some of the possible reasons why the gender wage gap widens as workers progress through their careers.

Suggested Citation

  • Jaison R. Abel & Richard Deitz, 2015. "When Women Out-Earn Men," Liberty Street Economics 20150805, Federal Reserve Bank of New York.
  • Handle: RePEc:fip:fednls:87050
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    Keywords

    College Graduates; Gender Wage Gap;

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General

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