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Gender Segregation and Gender Wage Differences during the Early Labour Market Career

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  • Bechara, Peggy

Abstract

Using German linked employer-employee data this paper investigates the gender wage gap at the time of entering the labour market and its development during workers' early career. The analysis contributes to the existing research on gender wage differentials among young workers by providing evidence on the impact of women's disproportionate concentration in lower-paying industries, occupations, establishments and job-cells, i.e. occupations within establishments. The estimation results reveal that all types of segregation and particularly job-cell segregation are significant determinants of the gender wage gap, while skill endowments and differences in work histories are found to be of minor importance. At the time of labour market entry women's wage disadvantages can almost entirely be explained by the fact that they start their working career in lower-paying occupations and establishments. With progressing labour market experience, however, gender segregation becomes less important and cannot fully account for a slight widening of the wage differential among young men and women. Therefore, part of the early career wage gap remains unexplained.

Suggested Citation

  • Bechara, Peggy, 2012. "Gender Segregation and Gender Wage Differences during the Early Labour Market Career," Ruhr Economic Papers 352, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  • Handle: RePEc:zbw:rwirep:352
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    File URL: https://www.econstor.eu/bitstream/10419/61443/1/722260253.pdf
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    References listed on IDEAS

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    1. Jacob A. Mincer, 1974. "Introduction to "Schooling, Experience, and Earnings"," NBER Chapters,in: Schooling, Experience, and Earnings, pages 1-4 National Bureau of Economic Research, Inc.
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    3. Jacob A. Mincer, 1974. "Schooling, Experience, and Earnings," NBER Books, National Bureau of Economic Research, Inc, number minc74-1.
    4. Nabanita Datta Gupta & Donna S. Rothstein, 2005. "The Impact of Worker and Establishment‐level Characteristics on Male–Female Wage Differentials: Evidence from Danish Matched Employee–Employer Data," LABOUR, CEIS, vol. 19(1), pages 1-34, March.
    5. Gartner, Hermann, 2005. "The imputation of wages above the contribution limit with the German IAB employment sample," FDZ Methodenreport 200502_en, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    6. Keith A. Bender & Susan M. Donohue & John S. Heywood, 2005. "Job satisfaction and gender segregation," Oxford Economic Papers, Oxford University Press, vol. 57(3), pages 479-496, July.
    7. Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 2003. "New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee-Employer Data," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 887-922, October.
    8. Del Bono, Emilia & Vuri, Daniela, 2006. "Is It the Way She Moves? New Evidence on the Gender Wage Growth Gap in the Early Careers of Men and Women in Italy," IZA Discussion Papers 2523, Institute of Labor Economics (IZA).
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    10. Dennis Görlich & Andries de Grip, 2009. "Human capital depreciation during hometime," Oxford Economic Papers, Oxford University Press, vol. 61(suppl_1), pages 98-121, April.
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    Cited by:

    1. Friederike Maier & Oliver Stettes & Monika Queisser, 2013. "Berufschancen für Frauen, Lohnlücke: Ist die »gläserne Decke« noch Realität oder schon Vergangenheit?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 66(07), pages 03-11, April.

    More about this item

    Keywords

    Gender wage gap; early career; labour market segregation;

    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

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