Gender Differences in Training, Capital, and Wages

Abstract

This paper constructs an equilibrium job-matching model where workers differ in their attachment to the labor force. The model predicts that workers with weaker attachment to the labor market will receive lower starting wages and lower post-training wages, and will be placed in jobs that offer less training and use less capital. The implications of the model for gender differences in pay and job assignment are tested with the EOPP data set. Our findings suggest that while training intensity during the first three months of employment is similar in positions filled by males and females, females are employed in positions that have a shorter duration of on-the-job training and that use less capital. These differences in on-the-job training and capital in positions filled by men and women, as well as a lower market value for women's prior labor market experience, account for a substantial part of the gap in wages between males and females.