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American Economic Journal: Applied Economics: Vol. 2 No. 3 (July 2010)

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Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors

Article Citation

Bertrand, Marianne, Claudia Goldin, and Lawrence F. Katz. 2010. "Dynamics of the Gender Gap for Young Professionals in the Financial and Corporate Sectors." American Economic Journal: Applied Economics, 2(3): 228-55.

DOI: 10.1257/app.2.3.228

Abstract

The careers of MBAs from a top US business school are studied to understand how career dynamics differ by gender. Although male and female MBAs have nearly identical earnings at the outset of their careers, their earnings soon diverge, with the male earnings advantage reaching almost 60 log points a decade after MBA completion. Three proximate factors account for the large and rising gender gap in earnings: differences in training prior to MBA graduation, differences in career interruptions, and differences in weekly hours. The greater career discontinuity and shorter work hours for female MBAs are largely associated with motherhood. (JEL J16, J22, J31, J44)

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Authors

Bertrand, Marianne (U Chicago and IZA)
Goldin, Claudia (Harvard U)
Katz, Lawrence F. (Harvard U)

JEL Classifications

J16: Economics of Gender; Non-labor Discrimination
J22: Time Allocation and Labor Supply
J31: Wage Level and Structure; Wage Differentials
J44: Professional Labor Markets; Occupational Licensing

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