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Why do women's wages increase so slowly throughout their career? A dynamic model of statistical discrimination

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  • Nathalie Havet

    (GATE - Groupe d'analyse et de théorie économique - UL2 - Université Lumière - Lyon 2 - ENS LSH - Ecole Normale Supérieure Lettres et Sciences Humaines - CNRS - Centre National de la Recherche Scientifique)

  • Catherine Sofer

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

The aim of this paper is to explain the growing wage differentials between men and women during their working careers. We provide a dynamic model of statistical discrimination, which integrates specific human capital decisions: on-the-job training investment and wages are endogenously determined. We reveal a small wage differential at the beginning of women's career, but women's wages increase more slowly; this is partly due to a lower level of human capital investment by women and partly because firms smooth training costs between different periods.

Suggested Citation

  • Nathalie Havet & Catherine Sofer, 2008. "Why do women's wages increase so slowly throughout their career? A dynamic model of statistical discrimination," Post-Print halshs-00308783, HAL.
    • Handle: RePEc:hal:journl:halshs-00308783
    DOI: 10.1111/j.1467-9914.2008.00409.x
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    Cited by:

    1. Rune V. Lesner, 2016. "Testing for Statistical Discrimination based on Gender," Economics Working Papers 2016-07, Department of Economics and Business Economics, Aarhus University.
    2. Gundula Zoch, 2023. "Participation in Job-Related Training: Is There a Parenthood Training Penalty?," Work, Employment & Society, British Sociological Association, vol. 37(1), pages 274-292, February.
    3. Dieckhoff, Martina & Steiber, Nadia, 2009. "In search of gender differences in access to continuing training: Is there a gender training gap and if yes, why?," Discussion Papers, Research Unit: Skill Formation and Labor Markets SP I 2009-504, WZB Berlin Social Science Center.

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    More about this item

    Keywords

    dynamic model of statistical discrimination;

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • 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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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