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The gender gap in early career wage growth

Manning, Alan and Swaffield, Joanna (2005) The gender gap in early career wage growth. CEPDP, 700. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0753018802

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Identification Number: 700

Abstract

In the UK the gender pay gap on entry to the labour market is approximately zero but after ten years after labour market entry, there is a gender wage gap of almost 25 log points. This paper explores the reason for this gender gap in early-career wage growth, considering three main hypotheses - human capital, job-shopping and ‘psychological’ theories. Human capital factors can explain about 12 log points, job-shopping about 1.5 log points and the psychological theories about half a log point. But a substantial unexplained gap remains: women who have continuous full-time employment, have had no children and express no desire to have them earn about 12 log points less than equivalent men after 10 years in the labour market.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk
Additional Information: © 2005 the authors
Subjects: H Social Sciences > HD Industries. Land use. Labor
JEL classification: J - Labor and Demographic Economics > J3 - Wages, Compensation, and Labor Costs > J31 - Wage Level and Structure; Wage Differentials by Skill, Training, Occupation, etc.
J - Labor and Demographic Economics > J2 - Time Allocation, Work Behavior, and Employment Determination and Creation; Human Capital; Retirement > J24 - Human Capital; Skills; Occupational Choice; Labor Productivity
J - Labor and Demographic Economics > J7 - Labor Discrimination
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Departments > Economics
Date Deposited: 23 Jul 2008 15:11
Last Modified: 01 Oct 2010 09:13
URI: http://eprints.lse.ac.uk/id/eprint/19883

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