The impact of gender differences in occupational attainment on the relative earnings of young workers

This study investigates the potential influence that gender differences in occupational structures have upon the relative earnings of young women in the US labour market. The empirical methodology integrates a multinomial logit model of occupational attainment with estimated human capital wage equations across occupations. Empirical analysis of data from the 1979 cohort of the NLSY suggests that nearly two-thirds of the gender gap in hourly earnings results from men having more favourable earnings structures within occupations, relative to their female colleagues. Gender differences in occupational distributions apparently have a minor impact on the relative earnings of women.