Abstract
The gender pay gap continues to be a highly controversial topic in western society. However, direct comparisons between men and women are challenging due to the significant differences of the career paths in terms of both job choice and work experience. We introduce sequence based matching, a new method that combines sequence analysis with propensity score matching procedures, allowing for a better control of career differences between men and women in statistical analyses. In a sample of 1,019 German individuals from various industries, we analyse the role of children, education, and the year on the gender pay gap. Our results demonstrate the usefulness of the method and at the same time create further evidence for the continuous decline of the gender pay gap. Moreover, we demonstrate the usefulness of balancing longitudinal panel data in careers research.
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