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Wage Growth and Job Mobility in the Early Career: Testing a Statistical Discrimination Model of the Gender Wage Gap

Author

Listed:
  • Belley, Philippe

    () (Kansas State University)

  • Havet, Nathalie

    () (CNRS, GATE)

  • Lacroix, Guy

    () (Université Laval)

Abstract

The paper focuses on the early career patterns of young male and female workers. It investigates potential dynamic links between statistical discrimination, mobility, tenure and wage profiles. The model assumes that it is more costly for an employer to assess female workers' productivity and that the noise/signal ratio tapers off more rapidly for male workers. These two assumptions yield numerous theoretical predictions pertaining to gender wage gaps. These predictions are tested using data from the 1979 cohort of the National Longitudinal Survey of Youth. As predicted by our statistical discrimination model, we find that men and women have the same wage at the start of their career, but that female wages grow at a slower rate, creating a gender wage gap. Also consistent with our model, we find that mean wages are higher for workers who keep their job, while wage growth is stronger for workers who change job.

Suggested Citation

  • Belley, Philippe & Havet, Nathalie & Lacroix, Guy, 2012. "Wage Growth and Job Mobility in the Early Career: Testing a Statistical Discrimination Model of the Gender Wage Gap," IZA Discussion Papers 6893, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp6893
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    Cited by:

    1. Kaiser, Lutz C., 2014. "The Gender-Career Estimation Gap," IZA Discussion Papers 8185, Institute for the Study of Labor (IZA).
    2. BARGAIN Olivier & DOORLEY Karina & VAN KERM Philippe, 2016. "Minimum wages and the gender gap in pay. Evidence from the UK and Ireland," LISER Working Paper Series 2016-02, LISER.
    3. Lutz Kaiser, 2014. "The Gender-Career Estimation Gap," Proceedings of International Academic Conferences 0300349, International Institute of Social and Economic Sciences.
    4. Sloczynski, Tymon, 2013. "Population Average Gender Effects," IZA Discussion Papers 7315, Institute for the Study of Labor (IZA).

    More about this item

    Keywords

    gender wage gap; job transitions; tenure; returns to mobility; experience;

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts

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