IDEAS home Printed from https://ideas.repec.org/p/bdi/wptemi/td_1470_24.html
   My bibliography  Save this paper

The origins of the gender pay gap: education and job characteristics

Author

Listed:
  • Gulia Bovini

    (Bank of Italy)

  • Marta De Philippis

    (Bank of Italy)

  • Lucia Rizzica

    (Bank of Italy)

Abstract

This paper analyses the role that field of study choices and firm and job characteristics play in explaining gender pay gaps among university graduates at the beginning of their careers. We exploit a unique administrative population-wide dataset for Italy. We find that choices of university majors alone explain almost 60 per cent of the early career gender pay gap, since women tend to graduate in fields that give access to lower-paying firms and jobs. Sorting across firms and jobs only accounts for 20 per cent of the gap, indicating that its role is largely mediated by field specialization choices made while still in education.

Suggested Citation

  • Gulia Bovini & Marta De Philippis & Lucia Rizzica, 2024. "The origins of the gender pay gap: education and job characteristics," Temi di discussione (Economic working papers) 1470, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:wptemi:td_1470_24
    as

    Download full text from publisher

    File URL: https://www.bancaditalia.it/pubblicazioni/temi-discussione/2024/2024-1470/en_tema_1470.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Machin, Stephen & Puhani, Patrick A., 2003. "Subject of degree and the gender wage differential: evidence from the UK and Germany," Economics Letters, Elsevier, vol. 79(3), pages 393-400, June.
    2. Thomas Le Barbanchon & Roland Rathelot & Alexandra Roulet, 2021. "Gender Differences in Job Search: Trading off Commute against Wage," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(1), pages 381-426.
    3. Basit Zafar, 2013. "College Major Choice and the Gender Gap," Journal of Human Resources, University of Wisconsin Press, vol. 48(3), pages 545-595.
    4. Alessandra Casarico & Salvatore Lattanzio, 2024. "What Firms Do: Gender Inequality in Linked Employer-Employee Data," Journal of Labor Economics, University of Chicago Press, vol. 42(2), pages 325-355.
    5. Brown, Charles & Corcoran, Mary, 1997. "Sex-Based Differences in School Content and the Male-Female Wage Gap," Journal of Labor Economics, University of Chicago Press, vol. 15(3), pages 431-465, July.
    6. Michela Carlana, 2019. "Implicit Stereotypes: Evidence from Teachers’ Gender Bias," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(3), pages 1163-1224.
    7. Stuart Campbell & Lindsey Macmillan & Richard Murphy & Gill Wyness, 2022. "Matching in the Dark? Inequalities in Student to Degree Match," Journal of Labor Economics, University of Chicago Press, vol. 40(4), pages 807-850.
    8. Grace Lordan & Jörn‐Steffen Pischke, 2022. "Does Rosie Like Riveting? Male and Female Occupational Choices," Economica, London School of Economics and Political Science, vol. 89(353), pages 110-130, January.
    9. Alexia Delfino, 2024. "Breaking Gender Barriers: Experimental Evidence on Men in Pink-Collar Jobs," American Economic Review, American Economic Association, vol. 114(6), pages 1816-1853, June.
    10. Francine D. Blau & Lawrence M. Kahn, 2017. "The Gender Wage Gap: Extent, Trends, and Explanations," Journal of Economic Literature, American Economic Association, vol. 55(3), pages 789-865, September.
    11. Henrik Kleven & Camille Landais & Johanna Posch & Andreas Steinhauer & Josef Zweimüller, 2024. "Do Family Policies Reduce Gender Inequality? Evidence from 60 Years of Policy Experimentation," American Economic Journal: Economic Policy, American Economic Association, vol. 16(2), pages 110-149, May.
    12. Daniela Piazzalunga, 2018. "The Gender Wage Gap Among College Graduates in Italy," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 4(1), pages 33-90, March.
    13. Judith A. McDonald & Robert J. Thornton, 2007. "Do New Male and Female College Graduates Receive Unequal Pay?," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
    14. Joseph G. Altonji & Erica Blom & Costas Meghir, 2012. "Heterogeneity in Human Capital Investments: High School Curriculum, College Major, and Careers," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 185-223, July.
    15. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
    16. Devin G. Pope & Justin R. Sydnor, 2010. "Geographic Variation in the Gender Differences in Test Scores," Journal of Economic Perspectives, American Economic Association, vol. 24(2), pages 95-108, Spring.
    17. Graham, John W. & Smith, Steven A., 2005. "Gender differences in employment and earnings in science and engineering in the US," Economics of Education Review, Elsevier, vol. 24(3), pages 341-354, June.
    18. Ana Rute Cardoso & Paulo Guimarães & Pedro Portugal, 2016. "What drives the gender wage gap? A look at the role of firm and job-title heterogeneity," Oxford Economic Papers, Oxford University Press, vol. 68(2), pages 506-524.
    19. Claudia Goldin, 2014. "A Grand Gender Convergence: Its Last Chapter," American Economic Review, American Economic Association, vol. 104(4), pages 1091-1119, April.
    20. Carolyn M. Sloane & Erik G. Hurst & Dan A. Black, 2021. "College Majors, Occupations, and the Gender Wage Gap," Journal of Economic Perspectives, American Economic Association, vol. 35(4), pages 223-248, Fall.
    21. Isaac Sorkin, 2017. "The Role of Firms in Gender Earnings Inequality: Evidence from the United States," American Economic Review, American Economic Association, vol. 107(5), pages 384-387, May.
    22. Dan A. Black & Amelia M. Haviland & Seth G. Sanders & Lowell J. Taylor, 2008. "Gender Wage Disparities among the Highly Educated," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 630-659.
    23. Natalia Nollenberger & Núria Rodríguez-Planas & Almudena Sevilla, 2016. "The Math Gender Gap: The Role of Culture," American Economic Review, American Economic Association, vol. 106(5), pages 257-261, May.
    24. Eric Eide, 1994. "College Major Choice And Changes In The Gender Wage Gap," Contemporary Economic Policy, Western Economic Association International, vol. 12(2), pages 55-64, April.
    25. Linda Babcock & Maria P. Recalde & Lise Vesterlund & Laurie Weingart, 2017. "Gender Differences in Accepting and Receiving Requests for Tasks with Low Promotability," American Economic Review, American Economic Association, vol. 107(3), pages 714-747, March.
    26. Benjamin Bruns, 2019. "Changes in Workplace Heterogeneity and How They Widen the Gender Wage Gap," American Economic Journal: Applied Economics, American Economic Association, vol. 11(2), pages 74-113, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Forth, John & Theodoropoulos, Nikolaos, 2022. "Earnings Discrimination in the Workplace," IZA Discussion Papers 15357, Institute of Labor Economics (IZA).
    2. Aldén, Lina & Neuman, Emma, 2022. "Culture and the gender gap in choice of major: An analysis using sibling comparisons," Journal of Economic Behavior & Organization, Elsevier, vol. 201(C), pages 346-373.
    3. Masso, Jaan & Meriküll, Jaanika & Vahter, Priit, 2022. "The role of firms in the gender wage gap," Journal of Comparative Economics, Elsevier, vol. 50(2), pages 454-473.
    4. Sarah Louise Jewell & Giovanni Razzu & Carl Singleton, 2020. "Who Works for Whom and the UK Gender Pay Gap," British Journal of Industrial Relations, London School of Economics, vol. 58(1), pages 50-81, March.
    5. Jiang Li & Benoit Dostie & Gäelle Simard-Duplain, 2020. "What is the Role of Firm-Specific Pay Policies on the Gender Earnings Gap in Canada?," CIRANO Working Papers 2020s-67, CIRANO.
    6. Di Tommaso, Maria Laura & Contini, Dalit & De Rosa, Dalila & Ferrara, Francesca & Piazzalunga, Daniela & Robutti, Ornella, 2024. "Tackling the gender gap in mathematics with active learning methodologies," Economics of Education Review, Elsevier, vol. 100(C).
    7. Alessandra Casarico & Salvatore Lattanzio, 2023. "Behind the child penalty: understanding what contributes to the labour market costs of motherhood," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1489-1511, July.
    8. Benny, Liza & Bhalotra, Sonia & Fernández, Manuel, 2021. "Occupation flexibility and the graduate gender wage gap in the UK," ISER Working Paper Series 2021-05, Institute for Social and Economic Research.
    9. Jiang, Xuan, 2021. "Women in STEM: Ability, preference, and value," Labour Economics, Elsevier, vol. 70(C).
    10. Hannah Illing & Hanna Schwank & Linh T. Tô, 2024. "Hiring and the Dynamics of the Gender Gap," ECONtribute Discussion Papers Series 339, University of Bonn and University of Cologne, Germany.
    11. Graves, Jennifer & Kuehn, Zoë, 2021. "Specializing in growing sectors: Wage returns and gender differences," Labour Economics, Elsevier, vol. 70(C).
    12. Fernando Saltiel, 2019. "What's Math Got to Do With It? Multidimensional Ability and the Gender Gap in STEM," 2019 Meeting Papers 1201, Society for Economic Dynamics.
    13. Julia Philipp, 2023. "Gendered university major choice: the role of intergenerational transmission," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(2), pages 1049-1097, April.
    14. Cruz, Gabriel & Rau, Tomás, 2022. "The effects of equal pay laws on firm pay premiums: Evidence from Chile," Labour Economics, Elsevier, vol. 75(C).
    15. Meriküll, Jaanika & Tverdostup, Maryna, 2023. "The gap that survived the transition: The gender wage gap in Estonia over three decades," Economic Systems, Elsevier, vol. 47(3).
    16. Lippmann, Quentin & Senik, Claudia, 2018. "Math, girls and socialism," Journal of Comparative Economics, Elsevier, vol. 46(3), pages 874-888.
    17. Shulamit Kahn & Donna Ginther, 2017. "Women and STEM," NBER Working Papers 23525, National Bureau of Economic Research, Inc.
    18. Boring, Anne & Brown, Jennifer, 2024. "Gender and choices in higher education," Economics of Education Review, Elsevier, vol. 99(C).
    19. Anne‐Sophie Bruno & Nathalie Greenan & Jeremy Tanguy, 2021. "Does the Gender Mix Influence Collective Bargaining on Gender Equality? Evidence from France," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 60(4), pages 479-520, October.
    20. Anne (A.C.) Gielen & Esmee Zwiers, 2018. "Biology and the gender gap in educational performance - The role of prenatal testosterone in test scores," Tinbergen Institute Discussion Papers 18-086/V, Tinbergen Institute.

    More about this item

    Keywords

    gender pay gap; field of study; tertiary education; sorting;
    All these keywords.

    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
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bdi:wptemi:td_1470_24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/bdigvit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.