Attention Economy


Sunday, December 12, 2021

Choice of College Major and the Gender Wage Gap

College Majors, Occupations, and the Gender Wage Gap
https://pubs.aeaweb.org/doi/pdfplus/10.1257/jep.35.4.223
Abstract
The paper assesses gender differences in pre-labor market specialization among the college-educated and highlights how those differences have evolved over time. Women choose majors with lower potential earnings (based on male wages associated with those majors) and subsequently sort into occupations with lower potential earnings given their major choice. These differences have narrowed over time, but recent cohorts of women still choose majors and occupations with lower potential earnings. Differences in undergraduate major choice explain a substantive portion of gender wage gaps for the college-educated above and beyond simply controlling for occupation. Collectively, our results highlight the importance of understanding gender differences in the mapping between college major and occupational sorting when studying the evolution of gender differences in labor market outcomes over time.