The group was intentionally chosen to have very similar characteristics.
Although the gap in earnings between men and women was very small immediately after graduation, it widened in 15 years to the point that women earned 60 percent of what men earned.
Therefore, although not all of the unexplained gaps attribute to discrimination, the results of the studies signal gender discrimination, even if these women are highly educated.
Human capitalists argue that measurement and data problems contribute to this unexplained gap.
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We use cookies to offer you a better experience, personalize content, tailor advertising, provide social media features, and better understand the use of our services.One such study focused on gender wage differences in 1985 between the college graduates.The graduates were chosen from the ones who earned their degree one or two years earlier.Employment discrimination is a form of discrimination based on race, gender, religion, national origin, physical or mental disability, age, sexual orientation, and gender identity by employers.Earnings differentials or occupational differentiation—where differences in pay come from differences in qualifications or responsibilities—should not be confused with employment discrimination.For example, the feminist economist Deborah Figart [1997] defines labor market discrimination as “a multi-dimensional interaction of economic, social, political, and cultural forces in both the workplace and the family, resulting in different outcomes involving pay, employment, and status”.Furthermore, gender norms are embedded in labor markets and shape employer preferences as well worker preferences; therefore, it is not easy to separate discrimination from productivity-related inequality.One prominent formal procedure for identifying the explained and unexplained portions of the gender wage differentials or wage gap is the Oaxaca–Blinder decomposition procedure.Another type of statistical evidence of discrimination is gathered by focusing on homogeneous groups.Even after factoring in women's choice of working for fewer hours, and worker qualifications and other factors, such as grades in law school and detailed work history data, in 2000 men were ahead of women by 11 percent in their earnings, which might be attributed to discrimination.Other studies on relatively homogeneous group of college graduates produced a similar unexplained gap, even for the highly educated women, such as Harvard MBAs in the United States.
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