Gender Differences in the Effect of Education on the Slope of Experience‐Earnings Profiles

Abstract

A bstract . TWO earnings models are estimated for men and women of the National Longitudinal Survey of Labor Market Experience of Youth (1979 to 1988). Model 1 (a standard human capital equation) indicates women receive a relatively higher earnings effect from another year of education and week of work, suggesting that narrowing of the wage gap can occur through increasing these. However, increases in female education of over 20%, or increases in weeks worked of over 100% are needed to bring female earnings to the level of white males. Model 2, which includes the interaction between education and work experience, shows that more educated men have steeper experience‐earnings profiles while more educated women do not. This finding indicates different earnings growth patterns among similarly skilled and market attached men and women. Results imply that increasing female skills and work effort alone are insufficient in obtaining more equitable market outcomes and that the continuation of affirmative action policies are needed to achieve this goal.