The Gender Pay Gap

Empirical research on gender pay gaps has traditionally focused on the role of gender-specific factors, particularly gender differences in qualifications and differences in the treatment of otherwise equally qualified male and female workers (i.e., labor market discrimination). This paper explores the determinants of the gender pay gap and argues for the importance of an additional factor, wage structure, the array of prices set for labor market skills and the rewards received for employment in favored sectors. Drawing on joint work with Lawrence Kahn, I illustrate the impact of wage structure by presenting empirical results analyzing its effect on international differences in the gender gap and trends over time in the gender differential in the U.S.

ILR Impact Brief – Gender, Promotion, and Raises: Sometimes the Advantage Goes to Men

Prior studies looking at gender discrimination in the workplace, in the form of promotions and/or raises, have yielded mixed results. Research focusing on promotions has found that women are promoted less often than men, more often than men, and at equal rates. Research assessing both promotions and wages, grounded in the notion that promotions signal a status change that warrants additional compensation, has also produced no consensus on outcomes. This particular study, however, used unique data on recently hired workers at a broad sample of companies that enabled the authors to control for workers’ job performance, educational attainment, and other characteristics, as well as company characteristics such as profit/not-for-profit status, industry, establishment size, and percent of the workforce covered by a union contract in order to analyze gender differences in actual and expected promotions and accompanying wage gains

Do Cognitive Test Scores Explain Higher U.S. Wage Inequality?

Using microdata from the 1994-8 International Adult Literacy Survey (IALS) for nine countries, we examine the role of cognitive skills in explaining higher wage inequality in the United States. We find that while the greater dispersion of cognitive test scores in the United States plays a part in explaining higher U.S. wage inequality, higher labor market prices (i.e., higher returns to measured human capital and cognitive performance) and greater residual inequality still play important roles, and are, on average, quantitatively considerably more important than differences in the distribution of test scores in explaining higher U.S. wage inequality.

New Evidence on Gender Difference in Promotion Rates: An Empirical Analysis of a Sample of New Hires

Using a large sample of establishments drawn from the Multi-City Study of Urban Inequality (MCSUI) employer survey, we study gender differences in promotion rates and in the wage gains attached to promotions. Several unique features of our data distinguish our analysis from the previous literature on this topic. First, we have information on the wage increases attached to promotions, and relatively few studies on gender differences have considered promotions and wage increases together. Second, our data include job-specific worker performance ratings, allowing us to control for performance and ability more precisely than through commonly-used skill indicators such as educational attainment or tenure. Third, in addition to standard information on occupation and industry, we have data on a number of other firm characteristics, enabling us to control for these variables while still relying on a broad, representative sample, as opposed to a single firm or a similarly narrowly-defined population. Our results indicate that women have lower probabilities of promotion and expected promotion than do men but that there is essentially no gender difference in wage growth with or without promotions.

ILR Impact Brief - The Sources of International Differences in Wage Inequality

Wage inequality in the U.S. exceeds that of Canada, Denmark, Finland, Italy, Netherlands, Norway, Sweden, and Switzerland. Some researchers have pointed to the higher relative rewards for higher cognitive skill and more education in the U.S. as an important cause of this difference; others emphasize the greater diversity of labor market skills within the American population. This paper uses recently collected international data on cognitive skills, earnings, age, and years of formal schooling to assess the relative importance of population heterogeneity and higher relative pay for more cognitive skill in explaining higher U.S. wage inequality

Immigrants and gender roles: assimilation vs. culture

This paper examines evidence on the role of assimilation versus source country culture in influencing immigrant women's behavior in the United States – looking both over time with immigrants' residence in the United States and across immigrant generations. It focuses particularly on labor supply but, for the second generation, also examines fertility and education. We find considerable evidence that immigrant source country gender roles influence immigrant and second generation women's behavior in the United States. This conclusion is robust to various efforts to rule out the effect of other unobservables and to distinguish the effect of culture from that of social capital. These results support a growing literature that suggests that culture matters for economic behavior. At the same time, the results suggest considerable evidence of assimilation of immigrants. Immigrant women narrow the labor supply gap with native‐born women with time in the United States, and, while our results suggest an important role for intergenerational transmission, they also indicate considerable convergence of immigrants to native levels of schooling, fertility, and labor supply across generations