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Gender Differences in Early-Career Wage Growth


  • Napari, Sami


In Finnish manufacturing, the gender wage gap more than doubles during the first ten years in the labor market. This paper studies the factors contributing to the gender gap in early-career wage growth. The analysis shows that the size of the gender gap in wage growth varies with mobility status the gap being much higher when changing employers compared to within-firm wage growth. Several explanations for the gender gap in wage growth based on human capital theory and theory of compensating wage differentials are considered. However, most of the gap in wage growth remains unexplained. Further analysis documents that the female penalty in wage growth increases significantly as we move along the conditional wage growth distribution with a sharp acceleration in the gap at the top of the distribution.

Suggested Citation

  • Napari, Sami, 2007. "Gender Differences in Early-Career Wage Growth," Discussion Papers 1093, The Research Institute of the Finnish Economy.
  • Handle: RePEc:rif:dpaper:1093

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    References listed on IDEAS

    1. Kaitila, Ville, 2007. "Free Trade between the EU and Russia - Sectoral Effects and Impacts on Northwest Russia," Discussion Papers 1087, The Research Institute of the Finnish Economy.
    2. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
    3. Rautava, Jouko, 2002. "The role of oil prices and the real exchange rate in Russia's economy," BOFIT Discussion Papers 3/2002, Bank of Finland, Institute for Economies in Transition.
    4. World Bank, 2005. "Russian Federation : From Transition to Development, A Country Economic Memorandum for the Russian Federation," World Bank Other Operational Studies 8628, The World Bank.
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    More about this item


    gender wage gap; wage growth; mobility;

    JEL classification:

    • 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
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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