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Occupational Prestige and the Gender Wage Gap
Author(s) -
Kleinjans Kristin J.,
Krassel Karl Fritjof,
Dukes Anthony
Publication year - 2017
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/kykl.12149
Subject(s) - wage , occupational prestige , prestige , occupational segregation , preference , economics , demographic economics , labour economics , socioeconomic status , sociology , demography , population , linguistics , philosophy , microeconomics
Summary Occupational segregation by gender remains widespread and explains a significant part of the gender wage gap. We shed light on the reasons why occupational segregation persists despite the increases in women's education and labor force participation, and why it results in a gender wage gap. Women express a stronger relative preference than men for occupations that are valuable to society, which we argue is captured by their occupational prestige. If women prefer occupations with higher occupational prestige, they will earn lower wages because of compensating wage differentials. Using conditional logit models of occupational choice, we find statistically significant support for this hypothesis. The effect is economically significant: the gender differences in the weights placed on prestige and wages can explain up to one half of the gender wage gap resulting from occupational segregation, or about one fourth of the overall gender wage gap. Our results are strongest for individuals with low ability, which suggests that social norms may be an important factor in generating these gender differences.