Starting wages of women in female and male occupations: A test of the human capital explanation of occupational sex segregation

Abstract

Using mature women from the National Longitudinal Survey of Labor Market Experience we test the human capital propositions that predominantly female occupations are characterized by relatively higher starting wages and lower penalties for time spent out of the labor market. An examination of average hourly wage rates by level of work experience failed to indicate the kind of statistically significant starting wage differentials that would support an explanation of occupational sex segregation based on choice. Regression results indicate that predominantly female occupations offer significantly lower starting wages and higher penalty rates relative to predominantly male occupations. We fail to observe the kind of economic incentives suggested by human capital theory that would lead women to choose to work in traditionally female occupations. The findings of this study suggest that future research should address the roles of labor market discrimination and sex role socialization in explaining occupational sex segragation.