A question of gender? How promotions affect earnings

Aline Zucco and Ann-Christin Bächmann

VfS Annual Conference 2020 (Virtual Conference): Gender Economics from Verein für Socialpolitik / German Economic Association

Abstract: Occupational positions can explain an important part of the differences in pay between men and women. However, a considerable Gender Pay Gap exists even within the same occupational position. In this paper, we aim at understanding the reasons for the gap within occupational positions and, therefore, investigate whether promotions lead to the same effect on earnings growth for men and women. Using administrative data, we are the first to investigate potential gender gaps in earnings increase due to a promotion in Germany. Moreover, we are the first to analyze differences in the gender gap across promotions into different occupational positions. Our results emphasize that women's earnings growth are larger than men's after being promoted to the same position. We find that this effect is mainly due to selection since we compare a highly positively selected group of women to an average group of men. Once, we add firm fixed effects, however, gender differences disappear, which highlights the role of collective agreements.

Keywords: Gender; Promotions; Wage Growth (search for similar items in EconPapers)
JEL-codes: J16 J24 J31 M51 (search for similar items in EconPapers)
Date: 2020
New Economics Papers: this item is included in nep-cfn, nep-eur and nep-lma
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc20:224514

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