Why do women's wages increase so slowly throughout their career? A dynamic model of statistical discrimination
Havet, Nathalie ; Sofer, Catherine
Labour. Review of Labour Economics and Industrial Relations
2008
22
2
June
291-314
gender ; gender discrimination ; wage differential ; wage increase ; women workers
Wages and wage payment systems
English
Bibliogr.
"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."
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