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Investment in human capital and gender wage differences: evidence from the NLSY

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  • Paul Sicilian
  • Adam Grossberg

Abstract

This paper uses data from the National Longitudinal Survey of Youth (NLSY) to investigate gender differences in returns to various forms of human capital. Since the NLSY includes relatively detailed information regarding on- and off-the-job training, we place special emphasis on measuring gender differences in the incidence of and returns to formal post-school training. Also considered is the role of nonhuman capital factors such as industry and occupation in explaining the wage gap. It is found that about 60% of the gender wage gap in the sample is explained by mean differences in individual characteristics and market circumstances. This suggests a smaller role for discrimination in explaining the wage gap than previous research has found. The research indicates that training does not affect the gender wage gap. Also it is found that there is no statistically significant difference in the rate of return to other measures of human capital for women versus men. Our research suggests that the largest factors contributing to the wage gap are differences in the stocks of human capital for men and women, and differences in the distributions of men and women across industries and occupations.

Suggested Citation

  • Paul Sicilian & Adam Grossberg, 2001. "Investment in human capital and gender wage differences: evidence from the NLSY," Applied Economics, Taylor & Francis Journals, vol. 33(4), pages 463-471.
    • Handle: RePEc:taf:applec:v:33:y:2001:i:4:p:463-471
    DOI: 10.1080/00036840123000
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    2. Ericson, Thomas, 2004. "Personnel training: a theoretical and empirical review," Working Paper Series 2005:1, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    3. Lisa Giddings, 2003. "Continued decline for ethnic minorities in the transition?," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 11(4), pages 621-648, December.
    4. Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    5. Richard Mussa, 2013. "Rural--urban differences in parental spending on children's primary education in Malawi," Development Southern Africa, Taylor & Francis Journals, vol. 30(6), pages 789-811, December.
    6. Andrea Bassanini, 2006. "Training, wages and employment security: an empirical analysis on European data," Applied Economics Letters, Taylor & Francis Journals, vol. 13(8), pages 523-527.
    7. Joshua D. Pitts & Charles Kroncke, 2014. "Educational Attainment and the Gender Wage Gap: A Comparison of Young Men and Women in 1984 and 2007," Forum for Social Economics, Taylor & Francis Journals, vol. 43(2), pages 123-155, August.
    8. Naccarato, Toni & Brophy, Megan & Courtney, Mark E., 2010. "Employment outcomes of foster youth: The results from the Midwest Evaluation of the Adult Functioning of Foster Youth," Children and Youth Services Review, Elsevier, vol. 32(4), pages 551-559, April.
    9. Rahmah Ismail & Zulridah Mohd. Noor, 2005. "The Role Of Ethics In Economics And Business," IIUM Journal of Economics and Management, IIUM Journal of Economis and Management, vol. 13(2), pages 119-138, December.

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