Abstract
Analysis of a unique data set of U.S. veterinary firms and veterinarians provides evidence of significant differences in earnings between self-employed males and females. After controlling for important concomitant variables, including training and experience, self-employed female veterinarians generally own smaller clinics and have lower earnings than their male counterparts. This study considers which demographic/economic factors may be associated with observed gender differences in earnings. The gender gap for average earnings is about 44 percent; however, when controlling for certain characteristics, the gap narrows to as little as 23 percent, depending on the model specification. Firm size was found to be the strongest contributing factor in explaining the gender gap in earnings, and so, possible explanations for differences in firm size have also been discussed. Whilst the analysis is not conclusive, there is evidence that self-employed females may face customer discrimination, which may constrain the growth and size of female-owned firms. (JEL D21) Keywords: Gender differences, salaries, self-employment, veterinarians
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