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

Author

Listed:
  • Joanna Tyrowicz

    (Group for Research in Applied Economics (GRAPE)
    University of Warsaw
    Institute of Labor Economics (IZA))

  • Lucas van der Velde

    (Group for Research in Applied Economics (GRAPE)
    Warsaw School Economics)

Abstract

Statistical discrimination offers a compelling narrative on gender wage gaps among younger workers. Employers could discount women's wages to adjust for probable costs linked to childbearing. Given trends towards lower and delayed fertility one should observe a lower discount in wages and a reduction in the gender wage gap among entrants. We put this conjecture to test. We provide a novel collection of adjusted gender wage gap (AGWG) estimates among young workers from 56 countries spanning four decades. We use these estimates to study the effects of postponing childbirth on AGWG. We find that postponing first parity by a year reduces AGWG by two percentage points (15%). We further benchmark the implied gender inequality with the help of time-use data

Suggested Citation

  • Joanna Tyrowicz & Lucas van der Velde, 2022. "Statistical gender discrimination: evidence from young workers across four decades and 56 countries," GRAPE Working Papers 66, GRAPE Group for Research in Applied Economics.
    • Handle: RePEc:fme:wpaper:66
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    File URL: http://grape.org.pl/WP/66_VanderVeldeTyrowicz_website.pdf
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    More about this item

    Keywords

    youth; gender wage gap; statistical discrimination;
    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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