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Statistical gender discrimination: evidence from young workers across four decades and 56 countries

Author

Listed:
  • Joanna TYROWICZ

    (FAME | GRAPE)

  • Lucas VAN DER VELDE

    (FAME | GRAPE)

Abstract

Statistical discrimination offers a compelling narrative on gender wage gaps among younger workers. Employers could reduce women's wages to adjust for expected costs linked to child-bearing. If this is the case, then trends toward delayed fertility should reduce the gender wage gap among young workers. We provide a novel collection of adjusted gender wage gap (AGWG) estimates among young workers from 56 countries spanning four decades and use it to test the conjecture that delayed fertility reduces gender wage inequality. We employ instrumental variables, and find that one year postponement of the first birth reduces AGWG by two percentage points (15% of the AGWG). We benchmark this estimate with the help of time-use data.

Suggested Citation

  • Joanna TYROWICZ & Lucas VAN DER VELDE, 2024. "Statistical gender discrimination: evidence from young workers across four decades and 56 countries," JODE - Journal of Demographic Economics, Cambridge University Press, vol. 90(4), pages 659-688, December.
  • Handle: RePEc:ctl:louvde:v:90:y:2024:i:4:p:659-688
    DOI: 10.1017/dem.2024.21
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    More about this item

    Keywords

    Gender wage gap; Statistical discrimination; Youth;
    All these keywords.

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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