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The Dynamics of Gender Earnings Differentials: Evidence from Establishment Data

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  • Erling Barth
  • Sari Pekkala Kerr
  • Claudia Olivetti

Abstract

We use a unique match between the 2000 Decennial Census of the United States and the Longitudinal Employer Household Dynamics (LEHD) data to analyze how much of the increase in the gender earnings gap over the lifecycle comes from shifts in the sorting of men and women across high- and low-pay establishments and how much is due to differential earnings growth within establishments. We find that for the college educated the increase is substantial and, for the most part, due to differential earnings growth within establishment by gender. The between component is also important. Differential mobility between establishments by gender can explain 27 percent of the widening of the pay gap for this group. For those with no college, the, relatively small, increase of the gender gap over the lifecycle can be fully explained by differential moves by gender across establishments. The evidence suggests that, for both education groups, the between-establishment component of the increasing wage gap is due almost entirely to those who are married.

Suggested Citation

  • Erling Barth & Sari Pekkala Kerr & Claudia Olivetti, 2017. "The Dynamics of Gender Earnings Differentials: Evidence from Establishment Data," NBER Working Papers 23381, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:23381
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    Cited by:

    1. Cook, Cody & Diamond, Rebecca & Hall, Jonathan & List, John A. & Oyer, Paul, 2018. "The Gender Earnings Gap in the Gig Economy: Evidence from over a Million Rideshare Drivers," Research Papers repec:ecl:stabus:3637, Stanford University, Graduate School of Business.
    2. repec:jid:journl:y:2018:v:25:i:1:p:1-53 is not listed on IDEAS
    3. repec:eee:inecon:v:111:y:2018:i:c:p:122-133 is not listed on IDEAS
    4. Mary Ann Bronson & Peter Skogman Thoursie, 2017. "The Lifecycle Wage Growth of Men and Women: Explaining Gender Differences in Wage Trajectories," Working Papers gueconwpa~17-17-06, Georgetown University, Department of Economics.

    More about this item

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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