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Worker Effort Decisions and Efficient Gender-Specific Wage-Tenure Profiles

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  • Hersch, Joni
  • Reagan, Patricia B

Abstract

Despite theoretical arguments that predict the opposite, empirical estimates of workers' returns to tenure tend to be greater for female than for male workers. This paper develops an agency model of wage contracts to explain this empirical finding. If male and female workers differ only in the expected length of their working lives, efficient wage-tenure profiles are steeper for women than men as a direct result of their shorter working life. This result implies that returns to tenure for women and men will become comparable as women's and men's labor force attachments converge. Copyright 1997 by Oxford University Press.

Suggested Citation

  • Hersch, Joni & Reagan, Patricia B, 1997. "Worker Effort Decisions and Efficient Gender-Specific Wage-Tenure Profiles," Economic Inquiry, Western Economic Association International, vol. 35(1), pages 193-207, January.
    • Handle: RePEc:oup:ecinqu:v:35:y:1997:i:1:p:193-207
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    Cited by:

    1. Frank Walsh & Eric Strobl, 1999. "Changes in the gender wage gap and the returns to firm specific human capital," Working Papers 199907, School of Economics, University College Dublin.
    2. Munasinghe, Lalith & Reif, Tania & Henriques, Alice, 2008. "Gender gap in wage returns to job tenure and experience," Labour Economics, Elsevier, vol. 15(6), pages 1296-1316, December.
    3. Fang, Zheng & Sakellariou, Chris, 2015. "Discrimination or Unobserved Differences in Characteristics?-An Empirical Study on Wage Inequality," MPRA Paper 68568, University Library of Munich, Germany.

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