econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 04 December 2016

Is There A Gender Wage Growth Gap?

from the Atlanta Fed

-- this post is authored by Ellyn Terry

The existence of the "gender wage gap" is well documented. Although the gap in the average level of pay between men and women has narrowed over time, studies conducted in the past few years find that women still tend to make about 20 percent less than men.

Researchers estimate that between one half and three quarters of the gap can be accounted for by observable differences between men and women in the workforce such as labor market experience, educational attainment, as well as job characteristics (see here, here, and here). This estimation leaves one quarter to one half of the gap that is the result of other factors. While some pin the remainder on discrimination or unfair hiring practices, others suggest the remaining gap may reflect subtle differences in work preferences, such as women choosing jobs with family-oriented benefit packages or flexible work arrangements.

A related question is whether there are differences between the average wage growth of men and women. Since 2010 the Atlanta Fed's Wage Growth Tracker has revealed a disparity between the pay raises of continuously employed men and women, as depicted in the following chart.

Between 1997 and 2010, wage growth of men and women was about equal. Since 2010 however, a gap has emerged. On average, men have been experiencing about 0.35 percentage points higher median wage growth than women. Can differences in characteristics such as experience and job choice explain this gap?

To answer this question, I aggregated individuals into groups based on their potential labor market experience (0 - 5 years, 5 - 9 years, 10 - 24 years, and 25 - 48 years) education (degree or no degree) family type (married, whether your spouse works, and whether you have kids); industry (goods versus services) occupation (low, middle, or high skill); sector (public versus private); and if the person switched jobs recently. I then computed the median wage growth for each unique group in each year. Using a statistical technique called a Oaxaca Decomposition, I separated out the difference between men and women's wage growth that can be pinned on differences in the way men and women are distributed among these groups (the "endowment" effect).

The following chart shows median wage growth after removing this endowment effect.

After removing the difference in wage growth that is the result of differences in gender-specific characteristics, wage growth of men and women is much more similar. In particular, these differences appear to almost entirely account for the gap that had emerged after 2009. What explains the gap in wage levels between men and women is still an open question, but this analysis suggests that much of the difference in wage growth through the years has to do with family/job choices and other individual characteristics.

Source

http://macroblog.typepad.com/macroblog/2016/11/is-there-gender-wage-growth-gap.html

About the Author

Photo of Ellyn TerryEllyn Terry, an economic policy analysis specialist in the Atlanta Fed's research department

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, using Livefyre just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



You can also comment using Facebook directly using he comment block below.





Econintersect Contributors


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Tax Reform: The Good, the Bad, and the Really Ugly, Part Three
A New Era of Central Banking?
News Blog
When Evidence Says No, But Doctors Say Yes
Pacific Rim States Affected By Trump's War On Free Trade
Real Paleo Diet: Early Hominids Ate Just About Everything
Amazon's Global Workforce Is Growing Rapidly
What We Read Today 23 February 2017
February 2017 Kansas City Fed Manufacturing At Highest Level Since June 2011
Lost In The Sixties-The Winds Of Change
January 2017 CFNAI Super Index Moving Average Statistically Unchanged
18 February 2017 Initial Unemployment Claims Rolling Average Insignificantly Improves
Jihadism: An Eerily Familiar Threat
Dynamic Stochastic General Equilibrium Forecast For February 2017
Infographic Of The Day: Guide To Tipping
Early Headlines: Asia Stocks Mostly Down, Oil Up, Dollar And Gold Steady, Extreme Arctic Warmth, Town Halls, More Water In Calif, UK Bogus Green Power, Mosul Airport Attacked And More
Investing Blog
Can You Spot Low Risk Entries?
Technical Thoughts: Trading, Luck Or Skill?
Opinion Blog
Fed Up: Culture Shock
Kenneth Arrow's Ignored Impossibility Theorem
Precious Metals Blog
Deflation And Gold: A Contrarian View
Live Markets
23Feb2017 Market Close: Wall Street Closes Mixed Near The Unchanged Line, Nasdaq Closed Down Fractionally, The DOW Closes Up 35 Points, Crude And The US Dollar Remain Mostly Unchanged
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government





























 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved