published in: Oxford Bulletin of Economics and Statistics, 2007, 69 (6), 819-842
Focussing on recent UK graduates, a wage gap of 12% is found. The unexplained
component of the gap is small and a large fraction of the gap can be explained by subject
choice, job characteristics, motivation and expectation variables. Motivation and expectations
account for 44% of the explained gap, thus most studies over-estimate the unexplained
component of the gender wage gap. Following stereotypes, women tend to be more altruistic
and less career oriented than men, character traits that are less rewarded by employers. The
principal component of the gender wage gap is expectations about childrearing. These
conservative attitudes affect women’s wages even at an early stage of their career. Without a
change in attitude, the gender wage gap is likely to remain.
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