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Firm Sorting, College Major, and the Gender Earnings Gap

Federico Huneeus (), Conrad Miller, Christopher Neilson () and Seth Zimmerman

Working Papers Central Bank of Chile from Central Bank of Chile

Abstract: A growing body of evidence shows that differences in firm-specific pay premiums account for a large share of the gender pay gap. This paper asks how a common form of pre-labor market skill specialization, college major, mediates access to high-paying firms, and what this means for the gender earnings gap. Using employer-employee tax data from Chile matched to educational records, we show that differences in college major account for more than two-thirds of the firm contribution to the gender earnings gap among college admits. Degrees in Technology, which are numerous, male-dominated, and associated with high firm premiums, drive these effects.

Date: 2021-06
New Economics Papers: this item is included in nep-gen, nep-isf and nep-lam
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