Abstract
Gender differences in the frequency of employer changes and their financial return were examined in a sample of Bavarian university graduates. The search and matching theories were used to develop hypotheses which were then tested against each other. The results show that in the first few years after graduation women change employer more frequently than men. In large part this can be explained by gender differences in labor market structures, in particular the fact that a woman’s first job is less likely to be in a large company, in an executive position or on a permanent contract and women tend to be less satisfied with their first job. After controlling for variance in these factors the coefficient changes sign, indicating that under similar circumstances men change employer more often. Furthermore, both men and women benefit financially from changing employer. The absolute return is higher for men, but as men tend to have a higher starting salary there is no gender difference in the relative return and hence no effect on the gender gap. The results are also discussed in the light of the specifics of the structure of the German labor market.
Highlights
Differences between men and women are widely discussed with regard to the labor market
A significant part of the sociological and economic literature concentrates on explaining the gender differences in wages, sometimes referred to as the gender pay gap (GPG)
The issues on which this study focused were the frequency with which individuals change employer during their early career, the nature of the relationship between gender and changes of employer and how changes of employer affect wages and the gender pay gap in Germany
Summary
Differences between men and women are widely discussed with regard to the labor market. 2. Women do not change their employer more often than men because segregation of the labor market means that it is not easier for them to find a better job for the same search cost, despite their on average worse starting position (H2 segregation hypothesis). Men benefit more from changing job than women because they are more likely to be employed in a sector where the chances of advancement through job mobility are good (H4 advancement hypothesis) In both cases the effects probably cannot be attributed to one single factor (e.g. the entry job or promotion opportunities); it is likely that several factors are at work simultaneously, possibly acting in different directions. The proportion of men in part-time work falls, from 9 to 3% for those who change job and from 3 to 2% for those who do not
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