Wage Gaps in the US Labor MarketSabrina Maxwell

Dr Megan Silbert/Labor Economics

Who else has worked while in school?

Findings

Educational Attainment

• Lower quality of education for black students

• Labor market discrimination

• Survey of 6,000 students• Instructional quality• Quality of Student• Campus Work Ethic• Reputation of College

10-15% Difference

• Longitudinal study found differences

• Type of job contributed to pay difference

• Impact of Domestic roles• Experiences of Minority

Women

Cost of Being a Girl• We pay extra for being female• Men and Women alike enter workforce prior to

education completion• Examine education and experience• Women are said to have lower productivity

level• Domestic duties like cooking, cleaning, raising

kids• Occupational discrimination• Traditional jobs using nurturing social skills• Free-lanced Jobs vs Employer-Type jobs

Still no explanation. . .

• Evaluation of 3 age groups

12-13 yr 14-15 yr 16-19 yr $-

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

MenWomen

Mon

ey E

arne

d

Bachelor’s Degree Major Comparison

Health Professions Social Sciences Engineering Business and Economics0

5

10

15

20

25

30

19.24 19.69

25.43

21.68

10.47

13.9

1.04

12.08

8.92

16.56

0.7

16.75 Men

White Women

Black Women

Per

cen

tage

Mean Wages

Difference in College Majors• Wage Gaps have fallen over last 25 years• Women choose different Majors• Education and Liberal Arts• Business and Engineering• National Association of Colleges and Employers (NACE)• Women > Men in choosing Engineering

http://www.clarkson.edu/alumni_magazine/winter2012/women_in_engineering.html

At younger ages the wage gap was small however as women age the gap increases

-0.09

-0.24

-0.39

-0.43

Percent of Wage Gap

Ages 25-29Ages 30-39Ages 40-49Ages 50-60

To sum it up. . .

Engineering Business Physical Sciences

0

10

20

30

40

50

60

% of Women in Majors Listed

197519841996

• Difference in Majors• Engage in academic

activities• Negotiate• Do research• Discrimination

operates in labor Market

Wage Gaps in the Us Labor Market

Questions