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- Title
Why Do Women's Wages Increase So Slowly Throughout Their Career? A Dynamic Model of Statistical Discrimination.
- Authors
Havet, Nathalie; Sofer, Catherine
- Abstract
The aim of this paper is to explain the growing wage differentials between men and women during their working careers. We provide a dynamic model of statistical discrimination, which integrates specific human capital decisions: on-the-job training investment and wages are endogenously determined. We reveal a small wage differential at the beginning of women's career, but women's wages increase more slowly; this is partly due to a lower level of human capital investment by women and partly because firms smooth training costs between different periods.
- Subjects
WAGE differentials; SEX discrimination in employment; EMPLOYEE training; HUMAN capital; WOMEN'S employment; WAGE increases; FINANCE
- Publication
LABOUR: Review of Labour Economics & Industrial Relations, 2008, Vol 22, Issue 2, p291
- ISSN
1121-7081
- Publication type
Article
- DOI
10.1111/j.1467-9914.2008.00409.x