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Changes in the gender wage gap and the returns to firm specific human capital

Author

Listed:
  • Frank Walsh
  • Eric Strobl

Abstract

If employers believe females are more likely to separate from a job than males, efficient cost sharing of on-the-job training implies that females will have higher returns to tenure. Becker and Lindsay (1994) argue that this is true empirically. (1994). Updating the analysis we find that that there is no longer a difference in the probability of leaving jobs or in returns to tenure by gender. Differences in contracts to finance on the job training can no longer explain any of the “discrimination” component in the gender wage gap.

Suggested Citation

  • Frank Walsh & Eric Strobl, 1999. "Changes in the gender wage gap and the returns to firm specific human capital," Working Papers 199907, School of Economics, University College Dublin.
    • Handle: RePEc:ucn:wpaper:199907
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    File URL: http://hdl.handle.net/10197/915
    File Function: First version, 1999
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    References listed on IDEAS

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    1. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    2. Blau, Francine D & Kahn, Lawrence M, 1997. "Swimming Upstream: Trends in the Gender Wage Differential in 1980s," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 1-42, January.
    3. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    4. Hersch, Joni & Reagan, Patricia B, 1997. "Worker Effort Decisions and Efficient Gender-Specific Wage-Tenure Profiles," Economic Inquiry, Western Economic Association International, vol. 35(1), pages 193-207, January.
    5. James Coleman, 1998. "Do women earn higher returns to tenure than men? Evidence from the new earnings survey," Applied Economics Letters, Taylor & Francis Journals, vol. 5(2), pages 65-68.
    6. Light, Audrey & Ureta, Manuelita, 1992. "Panel Estimates of Male and Female Job Turnover Behavior: Can Female Nonquitters Be Identified?," Journal of Labor Economics, University of Chicago Press, vol. 10(2), pages 156-181, April.
    7. Becker, Elizabeth & Lindsay, Cotton M, 1994. "Sex Differences in Tenure Profiles: Effects of Shared Firm-Specific Investment," Journal of Labor Economics, University of Chicago Press, vol. 12(1), pages 98-118, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Wage differentials; Gender gap; Tenure; Wage differentials; Discrimination in employment; Wages--Sex differences;
    All these keywords.

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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