Gender differentials in industry wage premia, affirmative action, and employment growth on the industry level

Abstract

While most previous work has examined the gender wage gap by controlling for productivity-related factors, we focus on gender differences in industry wage premia (efficiency wages) on the detailed industry level and examine industry characteristics that might explain such differences. Using data from the 1988 CPS, we find that the extent to which firms in an industry were likely to be targeted for Affirmation Action compliance review, industry employment growth, and industry profitability have helped narrow the gender gap in industry wage premia. Other characteristics, such as capital intensity, mean education, and sales and payroll growth were much less important.