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Firm Sorting, College Major, and the Gender Earnings Gap

Author

Listed:
  • Christopher Neilson

    (Princeton and NBER)

  • Federico Huneeus

    (Central Bank of Chile)

  • Conrad Miller

    (UC Berkeley and NBER)

  • Seth Zimmerman

    (Yale and NBER)

Abstract

A growing body of evidence shows that differences in firm-specific pay premiums account for a large share of the gender pay gap. This paper asks how a common form of pre-labor market skill specialization, college major, mediates access to high-paying firms, and what this means for the gender earnings gap. Using employer-employee tax data from Chile matched to educational records, we show that differences in college major account for more than two-thirds of the firms contribution to the gender earnings gap among college admits. Degrees in Technology, which are numerous, male-dominated, and associated with high firm premiums, drive these effects.

Suggested Citation

  • Christopher Neilson & Federico Huneeus & Conrad Miller & Seth Zimmerman, 2021. "Firm Sorting, College Major, and the Gender Earnings Gap," Working Papers 649, Princeton University, Department of Economics, Industrial Relations Section..
    • Handle: RePEc:pri:indrel:649
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    References listed on IDEAS

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    Cited by:

    1. Cruz, Gabriel & Rau, Tomás, 2022. "The effects of equal pay laws on firm pay premiums: Evidence from Chile," Labour Economics, Elsevier, vol. 75(C).

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    More about this item

    Keywords

    Chile;

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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