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Gender Differences in Early-Career Wage Growth

Author

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  • Napari, Sami

Abstract

In Finnish manufacturing, the gender wage gap more than doubles during the first ten years in the labor market. This paper studies the factors contributing to the gender gap in early-career wage growth. The analysis shows that the size of the gender gap in wage growth varies with mobility status the gap being much higher when changing employers compared to within-firm wage growth. Several explanations for the gender gap in wage growth based on human capital theory and theory of compensating wage differentials are considered. However, most of the gap in wage growth remains unexplained. Further analysis documents that the female penalty in wage growth increases significantly as we move along the conditional wage growth distribution with a sharp acceleration in the gap at the top of the distribution.

Suggested Citation

  • Napari, Sami, 2007. "Gender Differences in Early-Career Wage Growth," Discussion Papers 1093, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:dpaper:1093
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    More about this item

    Keywords

    gender wage gap; wage growth; mobility;
    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
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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