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The Dynamics of Gender Earnings Differentials: Evidence from Establishment Data

Author

Listed:
  • Erling Barth

    (Institute for Social Research, Oslo
    NBER)

  • Sari Pekkala Kerr

    (Wellesley College)

  • Claudia Olivetti

    (Boston College
    NBER)

Abstract
We use a unique match between the 2000 Decennial Census of the United States and the Longitudinal Employer Household Dynamics (LEHD) data to analyze how much of the increase in the gender earnings gap over the lifecycle comes from shifts in the sorting of men and women across high- and low-pay establishments and how much is due to differential earnings growth within establishments. We find that for the college educated the increase is substantial and, for the most part, due to differential earnings growth within establishment by gender. The between component is also important. Differential mobility between establishments by gender can explain approximately thirty percent of the overall gap widening for this group. For those with no college, the, relatively small, increase of the gender gap over the lifecycle can be fully explained by differential moves by gender across establishments. The evidence suggests that, for both education groups, the between-establishment component of the increasing wage gap is entirely driven by those who are married.

Suggested Citation

  • Erling Barth & Sari Pekkala Kerr & Claudia Olivetti, 2017. "The Dynamics of Gender Earnings Differentials: Evidence from Establishment Data," Boston College Working Papers in Economics 923, Boston College Department of Economics.
    • Handle: RePEc:boc:bocoec:923
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    More about this item

    Keywords

    earnings; gender differentials; earnings inequality;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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