Occupational Prestige and the Gender Wage Gap
Transcription
Occupational Prestige and the Gender Wage Gap
Occupational Prestige and the Gender Wage Gap KRISTIN J. KLEINJANS, California State University, Fullerton KARL FRITJOF KRASSEL, Danish Institute for Local and Regional Government Research (KORA) ANTHONY DUKES, University of Southern California – Marshall School of Business ABSTRACT Occupational segregation by gender remains widespread and explains a significant part of the gender wage gap. We examine the explanation that heterogeneity in preferences for wages and occupational prestige leads to gender differences in occupational choices, creating a gender wage gap. In self-reports, women express a stronger preference than men for occupations that are more valuable to society, which we hypothesize leads women to place more importance than men on the occupational prestige of their occupation, resulting in lower wages for occupations with higher prestige. Using Danish data, we find support for this hypothesis, especially for individuals with lower ability. Keywords: occupational choice, occupational prestige, social prestige, gender wage gap, gender roles JEL Codes: D13, J16, J24 1 INTRODUCTION Women’s educational attainment has increased dramatically over the last decades, gender roles have changed and women’s labor force attachment has increased in most industrialized countries (Blau, 2012; Blau and Kahn, 2000; Goldin et al., 2006). Nevertheless, women still earn less than men in most if not all countries (Anker, 1997; Blau, 2012). Up to one half of this gender pay gap can be explained by gender differences in occupational choice, commonly referred to as occupational segregation (Blau and Kahn, 2007; see also Hellerstein et al., 2008; and Bayard et al., 2003). Women and men tend to choose different occupations even with the same level and type of education (Shauman, 2006), even though young women today expect to be working throughout their lives, albeit with intermittent absences for child bearing and rearing (Goldin, 2006). These changes in educational attainment and patterns of labor force participation make the traditional notions of differences in human capital and expected labor force attachment insufficient to explain the gender wage gap, especially for young people. 1 Our focus in this paper is on exploring whether young women and men choose different occupations because of heterogeneity in preferences over attributes of occupations. Up to now, research has mostly considered women’s traditionally stronger preference for occupational attributes that make work more compatible with child rearing, such as shorter or more flexible work hours. We consider a different type of attribute - occupational prestige and argue that part of the gender wage gap results from gender differences in preferences for occupational prestige. Women express a stronger preference than men for occupations that 1 In addition to the explanations of differences in human capital and expected labor force attachment (Polachek, 1981; see England, 1982 for an opposing argument) and social roles (Eccles, 1994), recent studies have aimed at explaining occupational segregation with differences in non-cognitive skills (Antecol and CobbClark, 2013; Cobb-Clark and Tan, 2011; Grove, Hussey, and Jetter, 2011) and preferences for competition (Kleinjans, 2009), but found generally only small statistically significant effects. 2 are deemed useful to society (see, for example, Fortin 2008; Grove, Hussey, and Jetter, 2011; Marini et al., 1996). 2 Hence, women likely place more importance than men on the social value of their occupation. 3 We argue that occupational prestige reflects the social value bestowed on an occupation, which implies that women should be more likely to choose occupations with higher prestige than men. Compensating variation leads to lower wages in occupations with higher prestige, resulting in a gender wage gap. To investigate this hypothesis, we analyze whether there are gender differences in the relative importance of occupational prestige for occupational choice, and whether this difference can explain part of the observed gender wage gap resulting from occupational segregation. 4 Our results improve our understanding of reasons for occupational segregation. Furthermore, they shed light on the transmission mechanisms by which gender differences in preferences lead to differences in economic outcomes. In particular, if gender differences in preferences for occupational prestige are the result of gender roles (and we find some support for this interpretation), our findings can explain the mechanism by which gender roles lead to differences in occupational choices and, as a result, differences in wages. In traditional economic models, occupational choice depends on expected wages and the cost of attaining an occupation. Sociologists - and, more recently, economists - have 2 For example, Marini et al. (1996) report that in a survey of high school seniors on the importance of job attributes women were 66% and 44% more likely than men to indicate as very important that a job is “helpful to others” and “worthwhile to society”. Fortin (2008) finds that women’s greater expressed importance of “working with people” and “usefulness of a job to others and society” contributes slightly if at all to the gender wage gap. Because the analysis combines these two measures, her results are not comparable to ours. 3 Grove, Hussey, and Jetter (2011) find this for a national sample of MBAs in the US, and that it results in a wage penalty for women. 4 This is also in line with the finding by Andreoni and Vesterlund (2001) that women are more altruistic than men when altruism is expensive. 3 stressed the importance of other factors for occupational choice (Fershtman and Weiss, 1993 and 1998; Jacobs et al., 2006; Rothstein and Rouse, 2007). These include parental expectations, social norms and non-pecuniary benefits, such as the occupational prestige of an occupation. Occupational prestige (sometimes also referred to as social prestige) is defined as the social standing given to those holding a specific occupation (Hauser and Warren, 1997). The prestige assigned to an occupation is stable over time and similar across countries and population subgroups, including gender (Anker, 1982; Treiman, 1977; Warren, Sheridan and Hauser, 1997). Although occupational prestige is highly correlated with wages, ability and educational requirements (Chartrand et al., 1987), occupational prestige measures cannot be explained solely by those variables. In some ways related to the notion of social status used by economists to proxy relative social standing (see, e.g., Dolton, Makepeace, and van der Klaauw, 1989; Fershtman and Weiss, 1998), 5 we interpret occupational prestige (net of the effect of wage) as reflecting the occupation’s perceived contribution to society (see also Anker, 1982). However, unlike social status, occupational prestige is non-rivalrous. Specifically, the contribution to society results from positive externalities of occupations or their contributions to public goods (e.g., teachers and artists) and not from the number or type of workers in those occupations. Individuals benefit because contributing to society provides altruistic rewards (Fortin, 2008), that is, direct utility. Consequently, since women express stronger preferences for occupations that are deemed valuable to society we hypothesize that women care more about occupational prestige than men. 5 Social status is generally a composite measure derived from occupational prestige, salary, and sometimes the educational level of those holding the occupation (see Warren, Sheridan, and Hauser, 1998; Hauser and Warren, 1997). Few economists consider occupational prestige – a notable exception is Zhang (2012) who uses prestige as a proxy for respect to examine the effect of cultural attitudes on occupational choice. 4 Our measure of interest in our empirical analysis (the social value of an occupation) is thus occupational prestige net of the effects of wage and other confounding factors. We, therefore, control for wage and ability, and conduct extensive robustness checks to assure that our results regarding occupational prestige are not driven by confounding factors (such as job characteristics). In this paper, we are only able to speculate on the underlying reasons for the gender difference in the importance of occupational prestige. Our findings are consistent with the explanation that they result directly or indirectly from gender role socialization. This could be through its effect on preferences (Eccles, 1994), discrimination by teachers or employers of non-traditional choices, 6 or the ensuing lack of role models in non-traditional occupations (Blau, Ferber, and Winkler, 2010). It is also possible, however, that the driver is the gender difference in evolutionary advantages from altruistic behavior (Campbell, 2003). While understanding the origins of the differences in preferences for occupational prestige is beyond the scope of this paper, we discuss the results of some explorative analysis suggesting the importance of expected discrimination and gender roles. In what follows, we present a simple equilibrium model of equalizing differences where occupational prestige is interpreted as an amenity. The model predicts, in particular, lower wages in occupations with higher occupational prestige for a given skill level if some individuals care about occupational prestige. Hence, if women derive higher utility from occupational prestige, women will sort into lower paying but more prestigious occupations, resulting in a gender wage gap. 7 6 We then use Danish data to estimate a model of Compare, for example, the public perception of female police officers and male receptionists or parents’ and especially fathers’ negative reaction to boys playing with dolls (Eliot, 2009; Fine, 2010). 7 Such sorting could also explain why daughters have a lower intergenerational correlation of income than sons (Bowles and Gintis, 2002), and why parental income affects men’s but not women’s expectations of educational achievement when parental education is controlled for (Kleinjans, 2010). If women opt for higher 5 occupational choice in which the probability of expecting to work in an occupation depends on occupational and individual characteristics. 8 Our estimates indicate, indeed, that women expect to work in occupations with higher occupational prestige and lower wages than men. To examine the implications of these findings for the predicted wage gap, we study the counterfactual question of how much the gender wage gap would change if women had men’s coefficients of occupational prestige and wages. We find that this can explain about half of the gender gap resulting from occupational segregation. Furthermore, the gender differences are greater for individuals with lower ability, in line with an interpretation that the gender differences are related to gender roles, which tend to be more traditional for individuals with lower ability. I. AN EQUILIBRIUM MODEL OF WAGES AND OCCUPATIONAL PRESTIGE In this section, we describe a simple equilibrium model of a labor market with occupational prestige, and show why gender differences in preferences for occupational prestige may lead to a gender wage gap. The objective of the model is to provide the formalization of the theory of equalizing differences (Rosen, 1986) as it regards the wage gap resulting from gender differences in preferences for occupational prestige (see also Hamermesh, 1999). These gender differences lead to gender segregation in occupations, which are accompanied by prestige and wage differences. We then show how this difference can be moderated by external factors, such as a worker’s parental background, affecting occupational preferences. There are two types of jobs, 𝑗 = 0,1, which correspond to an occupation with a low (0) and a high (1) exogenous level of occupational prestige. Workers’ preferences are prestige but lower paying occupations than men, their wages have a lower correlation with parental income than men’s. 8 In this paper, we cannot address gender wage differences resulting from differential sorting into firms within occupations (Blau, 2012). 6 represented by the utility function 𝑢(𝐶, 𝑗), which is quasi-concave and increasing in 𝐶, the level of consumption purchased by wages. Occupational prestige can be considered an amenity, which provides additional utility for a given level of consumption for job 𝑗 = 1: 𝑢(𝐶, 1) > 𝑢(𝐶, 0) for all 𝐶. For each worker, there exists a unique 𝑧 ≥ 0 such 𝑢(𝐶 + 𝑧, 0) = 𝑢(𝐶, 1), which represents the compensating variation for job 𝑗 = 0 compared with 𝑗 = 1. As discussed in the introduction, women may have a stronger relative preference for occupations with higher occupational prestige. We interpret this gender difference as follows. Let 𝑖 = 𝐹, 𝑀 denote gender and suppose 𝑧𝑖 uniquely solves 𝑢𝑖 (𝐶 + 𝑧𝑖 , 0) = 𝑢𝑖 (𝐶, 1). Then 𝑧𝐹 > 𝑧𝑀 . Using the above utility formulations, we can now derive the supply of workers. Suppose there is a set of workers with mass of one. Let 𝑔𝑖 (𝑧) and 𝐺𝑖 (𝑧) be the p.d.f. and c.d.f., respectively, corresponding to the distribution of workers’ compensating variations, 𝑧, 1 for each gender 𝑖 = 𝐹, 𝑀. Assume genders have equal mass so that 𝐺𝑀 (∞) = 𝐺𝐹 (∞) = 2. The gender differences in relative preferences over occupational prestige assumed above implies that: 𝐺𝐹 (𝑧) < 𝐺𝑀 (𝑧) for all 𝑧 ∈ (0, ∞). (1) Let Δ𝑤 = 𝑤0 − 𝑤1 be the difference in wages across the two professions. Then worker 𝑖’s occupational choice is 𝑗 = 0 if Δ𝑤 > 𝑧 and 𝑗 = 1 otherwise. Note that any equilibrium with occupational segregation must have Δ𝑤 > 0 since otherwise all workers would choose occupation 𝑗 = 1. Furthermore, we shall also assume that 𝑔𝑖 (𝑧) > 0 for all 𝑧 > 0 and some 𝑖 so that some workers (even with very small 𝑧) have sufficiently little preference for occupational prestige and that an arbitrarily small wage differential makes occupation 𝑗 = 0 more attractive. The supply of workers 𝑁𝑗𝑆 for each occupation 𝑗 = 0,1 is then expressed as Δ𝑤 𝑁0𝑆 = 1 − 𝑁1𝑆 = ∫0 [𝑔𝐹 (𝑧) + 𝑔𝑀 (𝑧)]𝑑𝑑 = 𝐺𝐹 (Δ𝑤) + 𝐺𝑀 (Δ𝑤). (2) 7 1 The number of women and men in the market for occupation 𝑗 is 𝑁0𝑊 = 2 − 𝑁1𝑊 = 𝐺𝐹 (Δ𝑤) 1 and 𝑁0𝑀 = 2 − 𝑁1𝑀 = 𝐺𝑀 (Δ𝑤), respectively. To fully characterize the equilibrium we specify the demand side of the market. We assume that there are a set of employers that potentially hire in both occupations, 𝑗 = 0 or 1. They differ, however, in the marginal products of each type of occupation. Formally, suppose each employer’s output technology is represented by linear functions: 𝑥 = 𝑎𝑗 𝐿𝑗 , where 𝐿𝑗 ≥ 0 is the number of workers hired in occupation 𝑗 and 𝑎𝑗 is the marginal product of labor for each occupation at a given employer. For instance, a hospital hires 𝐿1 doctors (high occupational prestige) and 𝐿0 lab technicians. Define 𝑏 ≡ 𝑎0 − 𝑎1, which represents the relative marginal benefit of hiring in a low occupational prestige profession. We assume that each employer is characterized by its 𝑏 ∈ (−∞, +∞), whose distribution across employers is represented by the p.d.f. and c.d.f. 𝑓(𝑏) and 𝐹(𝑏). Employers hire in occupation 𝑗 = 0 if 𝑏 > Δ𝑤 and 𝑗 = 1 otherwise. A necessary condition for some employers hiring in both occupations is that 𝐹(0) < 1. Then, the demand for workers in each profession is expressed as Δ𝑤 𝑁1𝐷 = 1 − 𝑁0𝐷 = ∫−∞ 𝑓(𝑏)𝑑𝑑 = 𝐹(Δ𝑤). (3) The equilibrium condition is that the market clears in each occupation so that 𝑁𝑗𝑆 = 𝑁𝑗𝐷 for 𝑗 = 0,1. Using (2) and (3), it is directly shown that any equilibrium wage differential Δ𝑤 ∗ must satisfy 𝐺𝐹 (Δ𝑤 ∗ ) + 𝐺𝑀 (Δ𝑤 ∗ ) = 1 − 𝐹(Δ𝑤 ∗ ). Workers are employed in both occupations as long as 𝐺𝑖 (Δ𝑤 ∗ ) ∈ (0,1/2) for some 𝑖. By the condition on 𝑔𝑖 mentioned above, this is the case as long as Δ𝑤 ∗ > 0, which is implied by our assumption that 𝐹(0) < 1. We now establish that in equilibrium, there is gender segregation with a corresponding wage gap. Denote by 𝑁𝑗𝑖 the equilibrium level of employment for gender 𝑖 in occupation 𝑗. 8 The assumption on gender preference differences in (1) implies 𝑁0𝑊 < 𝑁0𝑀 and 𝑁1𝑊 > 𝑁1𝑀 , or that a greater portion of women (men) than of men (women) is in the high (low) occupational prestige profession, 𝑗 = 1. The weighted wage differential across the population is ∗ 𝑤 � 𝐹∗ − 𝑤 �𝑀 = 𝑤0∗ 𝑁0𝑊 +𝑤1∗ 𝑁1𝑊 𝑁0𝑊 +𝑁1𝑊 − 𝑤0∗ 𝑁0𝑀 +𝑤1∗ 𝑁1𝑀 𝑁0𝑀 +𝑁1𝑀 < 2𝑤1∗ [(𝑁0𝑊 + 𝑁1𝑊 ) − (𝑁0𝑀 + 𝑁1𝑀 )], where the inequality holds because Δ𝑤 ∗ = 𝑤0∗ − 𝑤1∗ > 0 > 𝑁0𝑊 − 𝑁0𝑀 . Since the RHS of the ∗ above inequality is zero (𝑁0𝑖 + 𝑁1𝑖 = 1/2, both 𝑖), we have 𝑤 � 𝐹∗ − 𝑤 �𝑀 < 0. Women earn less, on average, than men. This also implies that occupations with greater female shares have lower wages than those with greater male shares, in line with observed occupational pay differences (Blau, 2012). Finally, we argue how ability (or some other external factor) can affect worker preferences for occupations and ultimately the degree of gender segregation and wage differentials. Workers’ preferences for the degree of occupational prestige may be affected by ability if, for example, gender roles are less traditional for individuals with higher ability. To implement this notion formally, rewrite the utility of a worker of type 𝑖 = 𝐹, 𝑀 as 𝑢𝑖 (𝐶, 𝑗; 𝑃), where 𝑃 represents ability and let 𝑧𝑖 (𝑃) uniquely solve 𝑢𝑖 (𝐶 + 𝑧𝑖 (𝑃), 0, 𝑃) = 𝑢𝑖 (𝐶, 1, 𝑃). Since higher ability may lead to less traditional gender roles, we interpret this by saying that 𝜅(𝑃) = 𝑧𝐹 (𝑃) − 𝑧𝑀 (𝑃) > 0 is a decreasing function of 𝑃 for all 𝐶. It follows directly that gender segregation in occupations and the wage gap Δ𝑤 decreases in 𝑃. If 𝜅(𝑃�) = 0 for sufficiently large 𝑃�, then gender segregation and the wage gap disappear. II. THE GENDER WAGE GAP IN DENMARK In the empirical analysis, we use data from Denmark. Denmark is well-suited for our study because its gender wage gap and level of occupational segregation is similar to other countries. At the same time, gender differences in labor force participation and part-time 9 employment are relatively small, decreasing the importance of gender differences in expected labor force attachment for occupational choice. In what follows, we briefly describe these features. The raw gender wage gap in Denmark, similar to many countries, is 16.3%. 9 Despite women’s increase in educational achievement over the past decades (now women’s average education is almost one year higher than men’s), 10 occupational segregation remains widespread. Figure 1 shows segregation by gender and industry: four of the ten industries have a 70% or higher gender concentration. Compared to other European countries, Denmark is in the middle group with respect to occupational segregation (Bettio and Verashchagina, 2009). Denmark differs, however, from other industrialized (non-Scandinavian) countries in its relatively high female labor force participation and lower prevalence of female part-time employment. Denmark has strong dual-earner family policies with universal child care and paid parental leave (Lambert, 2008), so, not surprisingly, the Danish gender gap in labor force participation of 7.0 percentage points is smaller than in other countries, including Germany (11.8 percentage points) and the U.S. (13.5 percentage points). 11 Hence, differences in labor force attachment are smaller than in many other countries. 9 Based on hourly wage in 2011 (Eurostat, Gender pay gap statistics, http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tsdsc340&plugin=1, accessed 1/17/2015. The gap is about 4%-points smaller for performed work hours, and fluctuates with the business cycle (Larsen and Houlberg, 2013). 10 Own calculations based on Statistics Denmark and ISCED97 for 2011 (www.statistikbanken.dk, KRHFU1, http://eng.uvm.dk/Education/Overview-of-the-Danish-Education-System, accessed 1/17/15). 11 Own calculations based on OECD Labour Force Statistics for 2010 (http://stats.oecd.org/Index.aspx?DataSetCode=LFS_D, accessed 1/17/15). Individuals in education are counted as being in the labor force. 10 The gender gap in part-time work is also smaller in Denmark. In 2010, 24.1% of women worked part-time versus 12.0% of men - in contrast, for example, to Germany, where the shares were 30.8% and 8.4%. 12 Since part time workers tend to receive lower (hourly) wages, the tradeoff between wages and occupational prestige is different for people expecting to work part time from those who do not. This makes Danish data useful for the study of occupational choice because of the smaller potential impact of lower expected work hours. Construction Agriculture, forestry and fishing Agriculture, forestry and fishing Manufacturing, mining and quarrying, and utility Real estate Trade and transport etc. Other business services Financial and insurance Arts, entertainment and other services Men 10 0% 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0% Public administration, education and health Women Source: Statistics Denmark. FIGURE 1. Occupational Segregation by Sector in Denmark (full time employed), 2008 12 Own calculations based on OECD Labour Force Statistics (http://stats.oecd.org/Index.aspx?DataSetCode=FTPTC_D, accessed 1/17/15). Part time is defined as working fewer than 30 hours in the main job. 11 III. DATA We use a unique data set from Denmark that combines individual characteristics from survey and assessment data, occupational information drawn from population registries and the EU Labour Force Survey, and a survey measure of occupational prestige. The data is combined by linking parental information to youth, and by matching occupation-specific characteristics to the expected occupations of these youth. A key advantage of this data set is that it allows us to distinguish the importance of occupational prestige from other correlated occupational and individual characteristics, such as wages and ability. Specifically, by using an exogenous source of occupational prestige we avoid the potential pitfall of endogeneity of expectations and occupational prestige. The Danish PISA-Longitudinal Database is our source of individual-level data. It combines information from the 2000 OECD Programme for International Students Assessment (PISA) survey of nationally representative ninth graders and a follow-up survey entitled Young people in job or education – values, choices and dreams for the future, which re-interviewed the by then 19-years old PISA respondents in 2004. 13 The ability measure the PISA reading test score - comes from the 2000 PISA survey 14 and all other individual variables from the follow-up survey. The exceptions are gender, parental income and education, which are drawn from matched Statistics Denmark registers for the year 2003. Occupational choice is derived from answers to a question about the expected occupation at age 30. Teenagers’ expectations have been found to be predictive of outcomes (Fischhoff et al., 2000) and occupational expectations to be predictive for professionals (Schoon, 2001). Moreover, in Denmark the choice of occupation is closely related to educational choices, such as college major or type of educational training, mitigating the 13 See Jensen and Andersen (2006) for more information on this data set. 14 There is no other ability measure available for our sample. 12 effect of the time difference between the age at the time of the survey (19 years) and expected occupation. Since occupational expectations reflect plans and intentions they are a good measure of the effect of occupational prestige and wages on occupational choice. This is distinct from occupational attainment, which also reflects hiring decisions by firms (Antecol and Cobb-Clark, 2013). Our analysis assumes that individuals know median wages or at least the wage differences across occupations (Betts, 1996). The source of the occupational prestige variable is a survey from 2006 conducted by Ugebrevet A4, a Danish news media owned by LO, The Danish Confederation of Trade Unions, in which a representative sample of 2,155 Danes was asked to score 99 occupations according to their occupational prestige by assigning a number from 0 (lowest) to 10 (highest). 15 The survey was conducted in collaboration with Analyse Danmark, a Danish market research institute, from whose multi-purpose web panel the respondents were drawn. The occupational prestige of an occupation is measured as the mean score given by the respondents of the survey. Because there are some (albeit small) differences in the scores by age of the respondents, we use the scores of the youngest respondent category (ages 18-29). The level of detail of this survey matches the type of occupations provided by the youth well. 16 We derive the average number of actually performed work hours from the EU Labour Force Survey from 2003 and use registry data from the entire Danish population in 2003 to derive the other occupation-specific measures. 15 The question was: ”How would you assess the prestige of the following occupations in Denmark? You can answer from 0 (no prestige at all) to 10 (very high prestige)”. 16 Because of this we prefer this survey measure to the Ganzeboom and Treiman’s scale. See Appendix C for the results of robustness checks using this scale. There are also some differences in the prestige awarded to certain types of occupations, most importantly lawyers and skilled trade occupations, which are much higher ranked in Denmark. 13 Our working sample consists of 1,796 individuals matched to 74 occupations. Women have 5.9% lower hourly wages in their expected occupation 17 and 4.6% lower occupational prestige scores than men. As expected, wages and occupational prestige have a high correlation with 0.73. Figure 1 in Appendix A displays the distribution of wages sorted by occupational prestige. Appendix A also provides more detailed information about the data: Table A1 shows the descriptive statistics by occupation, Table A2 the variables used in our analysis, data source, definitions, and means and standard deviations of our working sample by gender. Appendix B gives more details about the sample selection and data set construction. Appendix C shows robustness checks for our results using a different measure of occupational prestige as well as sensitivity analysis regarding our sample selection. IV. ESTIMATION STRATEGY Our objective is to assess whether occupational prestige differently affects women’s and men’s choice of occupation, controlling for other occupation-specific and individual-specific characteristics. Therefore, we estimate a conditional logit model (also called a fixed-effects logit model) where the dependent variable equals one if an occupation is chosen and zero if not. Note that to estimate this model, the data is arranged such that the number of observations per individual is equal to the number of possible occupations. We maximize the conditional likelihood with the following conditional probability (Boskin, 1974): 𝑃𝑃𝑃𝑃�𝑌𝑖 = 𝑗�𝑧𝑖1, 𝑧𝑖2 , … , 𝑧𝑖𝑖 � = 𝑒 𝛽′𝑧𝑖𝑖 𝛽′𝑧 ∑𝐽𝑗=1 𝑒 𝑖𝑖 , which is the probability that individual i’s choice, 𝑌𝑖 , is occupation j, and 𝑧𝑖𝑖 are the occupation-specific characteristics as well as interaction terms of occupation- and individual17 Note that this gap results purely from occupational segregation. It implies that about half of the gender wage gap per performed work hour can be explained by occupational segregation, similar in magnitude to previous findings. 14 specific characteristics, such as ability. 18 All models are estimated using robust standard errors. In order to allow for all possible interactions between gender and other effects and to ease the interpretation of the results, we conduct separate regressions by gender and present odds ratios. In this paper, we are interested in the gender differences in the effect of occupational prestige and wage on occupational choice. In order to identify this, we need to control for potential confounders, that is, factors that affect occupational choice but are also correlated with our variables of interest, that is, occupational prestige and wage. Gender differences in occupational choices have been explained by women’s greater desire for work compatible with child-bearing and rearing. We therefore control for average work hours in each occupation. In a robustness check, we also include preferences for short/ convenient work hours, job safety, or a challenging job, to assess whether work hours capture this potential confounder. Because women are on average more risk averse than men (e.g., Powell and Ansic, 1997; Croson and Gneezy, 2009, for experimental evidence), and risk might be correlated with occupational prestige – which is possible if, for example, occupations in the public sector have higher prestige and lower risk – we also include the unemployment rate in all estimations. Since successful entry into occupations with higher wages (and potentially those with higher prestige as well) requires higher ability, we control in most regressions for ability, using dummies for the lowest and highest quartile. Ability can also be seen as a measure of the cost of getting the education required for occupations. There are two main kinds of cost: lost wages during the education, and the pain 18 In this model the outcome is equal to one if an occupation is chosen and zero otherwise, so it is not possible to include non-interacted individual characteristics since they do not vary by occupation. As a result, the number of individual characteristics that can be included given our sample size is limited, so instead we use in some cases separate regressions to assess their impact. 15 or pleasure (Oreopoulos and Salvanes, 2011) of acquiring the education. While we are not able to derive direct measures of these costs, lost wages are not as much of a concern for our data since, in Denmark, there is no tuition and every student receives a stipend unless she earns money (as is the case in most vocational training programs). For tertiary educations the stipend level depends on residence (i.e. whether the individual lives alone or with parents) while apprenticeship wages depend on age and whether the student has an education agreement. The stipend for students not living at home is around 5,900 DDK/month while initial apprenticeship wages (with typical work hours of about 37 per week) range between 8,600 and 10,000 DDK/month if the student has an education agreement with a firm; otherwise the wage is around 6000 (2500) DKK/month if the student is at least 18 years old (younger than 18 years). 19 To proxy for pain or pleasure of additional education, we conduct regressions where we include variables of how individuals felt about school after (compulsory) middle school, and specifically whether they were tired of school or felt the need to earn money. While illegal in Denmark, it is possible that women anticipate discrimination in hiring or promotion. Our data do not allow us to directly assess whether a woman’s choice of occupation is influenced by (anticipated) discrimination, but we are able to assess the implications of two types of discrimination, described in more detail below. While this can only give an idea of the importance of anticipated discrimination for occupational segregation, our analysis yields important insights into the black box of why gender differences in preferences for occupational prestige (whether they are the result of anticipated discrimination or not) affect occupational segregation and result in a gender pay gap. Furthermore, it is possible and maybe even likely that the 19 year olds we study may not 19 See https://www.ug.dk/flereomraader/maalgrupper/6til10klasse/elevloen . 16 anticipate facing much discrimination. According to a recent study commissioned by the European Commission on gender equality in Denmark, the public discourse in Denmark focusses on the role of traditional gender stereotypes for educational and occupational choices and generally takes gender equality in opportunities as given (Agustin, 2011). We explore potential evidence for gender roles as the source of the gender differences in preferences for occupational prestige and wage by including measures of socioeconomic status and parental occupations. Finally, we report the results of robustness checks with which we explored additional explanations for our results but found no evidence that these altered our conclusions. While with our data we are not able to use exogenous variation as identification strategy, we can justify the selection on observables because we are able to control for the most important potential confounders, with the possible exception of discrimination which is discussed above and below. 20 The remaining potential issue is reverse causality: It is possible that the share of women in an occupation decreases its occupational prestige (a hypothesis sometimes put forward in sociology) or that occupational prestige is higher for occupations that are considered “underpaid” compared to their contribution to society. There is no evidence for the former (England, 1979; Magnusson, 2009). Indeed, according to the survey used in our analysis, mixed occupations (defined as having at least 20% of both genders in an occupation) have the highest occupational prestige. Only three out of the top ten occupations have more extreme gender differences, two of which are overwhelmingly male (pilots and civil engineers) and one female (midwives). 20 One additional issue we cannot address in this paper is the role of the marriage market. Positive assortative mating by education (Bruze, Svarer, and Weiss, 2015) might affect occupational choice through expectations about a future spouse’s income and occupational prestige. 17 If occupational prestige is higher for “underpaid” occupations we might mistakenly interpret our results as showing that occupational prestige affects women’s choices even though it is women’s choices that affect occupational prestige. Consider the following scenario: Women choose certain occupation because discrimination makes it harder for them to work in others. This lowers wages, which in turn increases occupational prestige. As a result, occupations with more women have higher occupational prestige. This is, however, not the case - in fact, as mentioned above, occupations with relatively similar shares of women and men have the highest prestige. Note that since the occupational prestige measure is drawn from a different survey, justification bias (where individuals give higher occupational prestige to desired occupations) is no concern. V. RESULTS: THE ROLE OF OCCUPATIONAL PRESTIGE FOR GENDER DIFFERENCES IN WAGES Baseline Results The results of our baseline estimation are presented in Table 1. Columns (1) and (4) show the odds ratios when only wage, the unemployment rate and work hours are included. 21 Occupations with higher wages, lower unemployment rates, and – in the case of women – lower average work hours are more likely to be chosen. Men are more influenced by wage than women and women more by the unemployment rate, consistent with previous findings that women are more risk averse than men. Women’s greater response to work hours and unemployment can explain why women in our raw data have both lower wages and lower occupational prestige. Since the results for work hours and unemployment rate remain almost 21 We also include a flag for occupations with work hours that the EU Labour Force Survey flags as unreliable because of a small number of observations. Our results are robust to omitting the flag and to excluding those occupations from the analysis. 18 unchanged through all regression results, we only report those here. Throughout, we test whether odds ratios between women and men are statistically different using a Wald test. TABLE 1 BASELINE RESULTS: OCCUPATIONAL CHOICE, CONDITIONAL LOGIT MODEL (ODDS RATIOS SHOWN) (1) 1.019*** † (0.006) Wage Wage × low ability Wage × high ability Prestige Prestige × low ability Prestige × high ability Unemployment Work hours Pseudo R2 Log Likelihood # of individuals Observations Women (2) 0.992 (0.007) 1.322*** (0.050) 0.813*** (0.025) 0.797*** (0.020) 0.048 -3,806.06 929 68,746 0.853*** † (0.026) 0.756*** (0.023) 0.055 -3,777.57 929 68,746 (3) 1.001 ‡ (0.009) 0.893*** (0.015) 1.016 (0.014) 1.254*** (0.061) 0.974 ‡ (0.080) 1.350*** (0.117) 0.849*** † (0.027) 0.744*** (0.023) 0.075 -3,698.55 929 68,746 (4) 1.038*** † (0.004) Men (5) 1.019*** (0.005) 1.145*** (0.034) 0.920*** (0.019) 1.004 (0.013) 0.030 -3,618.31 867 64,158 0.923*** † (0.018) 0.997 (0.014) 0.033 -3,609.82 867 64,158 (6) 1.024*** ‡ (0.008) 0.959*** (0.012) 1.009 (0.012) 1.183*** (0.050) 0.803*** ‡ (0.054) 1.336*** (0.109) 0.918*** † (0.018) 0.987 (0.014) 0.050 -3,544.60 867 64,158 Notes Robust standard errors are shown in parentheses. ^ p<0.15, * p<0.10, ** p<0.05, *** p<0.01. Bold (†, ‡) in columns (1)-(6) indicates statistically significantly different odds ratios between men and women at the 1% (5%, 10%) percent level. Also included but not shown is a flag for imprecisely measured work hours. Including occupational prestige in the regression (shown in columns 2 and 5) reduces the effect of wage (now net of prestige) for women and men, and for women the odds ratio of 19 wage is not statistically different from zero. 22 Women are more influenced by an occupation’s prestige, supporting our hypothesis. A one unit increase in prestige (about two thirds of a standard deviation, and the equivalent of moving in terms of occupational prestige from a physiotherapist to a police officer) increases women’s probability of choosing an occupation 1.3 times and men’s 1.1 times. Adding ability shows that there are differences across the ability distribution (columns 3 and 6). This is especially important since women have higher test scores in our sample. Individuals in the lowest ability quartile choose occupations with lower wages, consistent with the interpretation that it is more difficult or costly for them to acquire the necessary education and to be successful in occupations with higher wages. This effect is stronger for women. The odds ratio of prestige, on the other hand, does not differ for women in the lowest ability range compared to those in the middle of the ability distribution, but is lower for men. Prestige is more important for high ability individuals of both genders. This suggests that occupations with higher wages or higher prestige are more difficult to get into, and that women substitute prestige for wages to a higher degree than men at low ability levels. Using this third specification, we compare women’s predicted wages with the counterfactual prediction in which women have men’s preferences for occupational prestige and wages but retain their own ability levels and aversion to unemployment and higher work hours. This comparison shows that about half (48%) of the 5.9% wage gap in our data can be explained by the gender differences in the effects of wages and occupational prestige on occupational choice. Figure 2 shows the resulting changes in predicted probabilities with 22 While the lack of importance of wages for women’s occupational expectations at first might seem surprising, it is in line with previous findings that, compared to non-pecuniary factors, earnings have only small effects on postsecondary choice of major, especially for women (Zafar, 2013; Wiswall and Zafar, 2011). 20 60 40 20 0 -20 -40 occupations sorted by occupational prestige FIGURE 2. Percentage change in predicted probabilities from the counterfactual (Table 1, specification 3) – r r r k r t t t t r r r t r r r t n r r r r r ic y n h n r t r r r t k t r n e t r t e e n t t k r r y r t r r) ) g ic t t r r r t r r e st r r t l) r t ne rke ive ler he tan tan tan tan lpe rke nte nis ato ke ite gis ria he me se be rke an tar so it so ice an ke ne he pis ler tan nte cia ye en he pis ye rs ia ies ltan oo ne he rm tho en ice to TV sin ed alisltan ge ito ne gis pe cto w if nti ee ssoitec ita ye ilo ea o dr c utc is is is is he o ai tio er Ba Watolobra eacFar reslumwo ch cre Ma ksmper off end-ma rdeeacera e c sis rpe ctri plo ageacera plo Nuhnic Pr su C sig rape a Au ag off secvie/ erti am urn su /sinAudesig olovelo A id De ginofe rch ospLaw P e e t t e t c h M en r A (h n c s Cl n w ck use l b assassassass e e wg pcep op e Li l t ir d P ial me e p r la s on at e Ga Th th ffi l a Ca Ele em nc ol ioth em tec -con ic d otogn th tat liceblic moadv par Jo-co cian n d yc de e io ru ia r m r n a o t O ta sm hoo Ha oc to S B ale ris ht bin vil te o ct /t ho tr rm les en e o ca ldi Re in h Ph er i l es Po pu w ( in er/ IT usi hio Psem nksur ch hystion ory HR al S P lig c a n S Au p Ci cia oct e ( a t rt uBus aredus Fa Sa itch achIn-H ild Bui ach v Co sc t e s P a s a k re g ri a fic / s h n r M B F r a s a e o h e I D c y h n D c e r r f r i d e i s n W In K lt e F G M C R g e o S k n n P s / i l a O o v / e i i b c c er or c A H mu er oo ny at Jo d La m ad am n w lan rn ch an m lle N lte ki He C rso bu es am Co r r s A m P og Un Pe A Pr occupations sorted by occupational prestige. As expected given the gender differences in odds ratios, women’s expected occupations change significantly. 21 TABLE 2 EXPLORATION OF COST AND DISCRIMINATION (ODDS RATIOS SHOWN) Wage Wage × low ability Wage × high ability Wage × low ability (gender specific) Wage × high ability (gender specific) Wage × Tired of school Wage × Needed to earn some money Prestige Prestige × low ability Prestige × high ability Prestige × low ability (gender specific) Prestige × high ability (gender specific) Prestige × Tired of school Prestige × Needed to earn some money Own gender < 10% Pseudo R2 Log Likelihood # of individuals Observations (1) 1.006 ‡ (0.009) 0.902*** (0.016) 1.012 (0.014) Women (2) 1.001 (0.009) (3) 1.007 (0.008) 0.902*** (0.014) 1.015 (0.013) (4) 1.027*** ‡ (0.008) 0.963*** (0.013) 1.005 (0.012) 0.911*** (0.015) 1.020 (0.015) 0.980 (0.017) 0.942* ‡ (0.030) 1.309*** (0.068) 1.022 (0.087) 1.315*** (0.115) 1.306*** ‡ (0.065) (6) 1.016** (0.008) 0.956*** (0.013) 1.010 (0.013) 0.963*** (0.013) 1.021* (0.012) 1.179*** (0.055) 0.970 ‡ (0.075) 1.355*** (0.112) 0.967** (0.015) 1.013 ‡ (0.021) 1.268*** (0.058) 0.858** (0.060) 1.261*** (0.106) 1.171*** ‡ (0.049) 0.911 0.803*** (0.071) 1.267*** (0.114) (0.057) 1.278*** (0.097) 0.768*** (0.066) 1.036 † (0.118) 0.079 -3,681.97 929 68,746 Men (5) 1.017** (0.008) 1.208*** (0.051) 0.807*** ‡ (0.054) 1.333*** (0.109) 0.851** (0.061) 0.746*** † (0.073) 0.073 -3,705.08 929 68,746 0.168*** ‡ (0.035) 0.092 -3,631.90 929 68,746 0.056 -3,521.43 867 64,158 0.050 -3,545.77 867 64,158 0.047*** ‡ (0.033) 0.059 -3,513.19 867 64,158 Notes Robust standard errors are shown in parentheses. ^ p<0.15, * p<0.10, ** p<0.05, *** p<0.01. Bold (†, ‡) in columns (1)-(6) indicates statistically significantly different odds ratios between men and women at the 1% (5%, 10%) percent level. Included but not shown: Unemployment, work hours, flag for imprecisely measured work hours. 22 To evaluate whether our findings are related to a lack of more complete cost measures, we repeated the third regression with further cost measures added (see Table 2, columns 1 and 4): Youth reporting in 2004 that their choice of what to do after (compulsory) middle school was influenced by their need to earn some money and by being tired of school. We find that mostly – as expected – being tired of school is associated with lower paying and lower prestige occupations. Needing to earn money is negatively associated with wage for women and positively for men, while it is the opposite for prestige, suggesting again that women opt for occupations with higher prestige and men with higher wages. The results of interest, odds ratios for prestige and wage, do not change in a significant manner. To assure that our results are not driven by women choosing so-called “caring” occupations, we repeated our analysis with added dummies for occupations in education and health. The results (not shown, available upon request) indicate that this is not the case: in this specification, gender differences in the odds ratios change only slightly. Women are more likely to choose occupations in education and health than in other fields, and men less likely to choose occupations in the health sector. As mentioned earlier, we are not able to directly test whether expected discrimination can explain the differential effects of prestige and wage for women and men. We are able to address two consequences of discrimination, however (shown in Table 2), to assess the potential importance of this explanation. First, suppose employers are biased against women. They might nevertheless feel the need to hire some women for legal or public image reasons. If this is the case, it is likely that women are evaluated separately, and compared only to other potential female employees. To evaluate this implication of discrimination, we use genderspecific ability quartiles. Second, discrimination (or expected discrimination) in hiring is more likely if the percentage of one’s own gender in an occupation is low. While this, however, is endogenous to our parameters of interest (that is, it could also be the result of the 23 sorting by occupational prestige and wages) it is worthwhile to investigate whether accounting for this affects our results. Hence, we include a dummy variable of whether the percentage of one’s own gender in an occupation is less than 10%. Overall, we find that neither of these explorations changes the odds ratios of interest in a statistically significant manner. The dummy for gender segregation shows that it strongly reduces the probability of an occupation being chosen, but its effect is not statistically different between women and men. Both specifications decrease the percentage of the explained wage gap resulting from different odds ratios for prestige and wage to 23% and 39%. These results point to a potential additional role of discrimination in explaining occupational segregation. Given our data, we are not able to explore this further. The Importance of Gender Roles One of the explanations for occupational segregation put forward is the influence of gender role socialization on educational and occupational choices (see, e.g., Eccles, 1994). Occupational choices are influenced by one’s socioeconomic background and ability (Turner and Bowen, 1999), and parental income and parental education affect girls’ and boys’ educational expectations differently (Kleinjans, 2010). Gender roles are more traditional in lower SES families (Dryler, 1998; Vella, 1994) and for lower ability individuals who may be less likely to challenge gender roles (Ahrens and O’Brien, 1996; Fassinger, 1990), also because parents’ approval is an important determinant for children’s occupational and college-major choice (Jacobs, Chhin, and Blecker, 2006; Zafar, 2013). This is supported by the high degree of occupational segregation of low-ability individuals in our data: The majority of occupations (79%) in which individuals with low ability expect to work require vocational training or less, and these occupations are highly segregated with 74% of occupations having 75% or more workers of one gender compared to 21% of occupations requiring a master degree. If the importance of occupational prestige and wages for 24 occupational choice is related to gender roles, then we would expect gender differences to be most pronounced for low SES and low ability individuals. 23 We already found in results presented earlier that this is indeed the case for low-ability individuals. Indeed, counterfactual predictions by ability show that 76% of the gender wage gap disappears for the lowest ability quartile once we assume that women have men’s coefficients for wages and occupational prestige, while it is 32% for the two middle quartiles and only 17% for the highest ability quartile. To test whether this relationship also holds for low SES individuals, we include interaction terms between low and high parental education and income with wage and occupational prestige variables (see Table 3). We find only weak support for this hypothesis, though this could be related to the number of variables included for the sample size. Low parental education decreases the importance of wage for women. Low parental income reduces the importance of occupational prestige for women’s choices and low parental education the importance of prestige for men’s choices. As another way to investigate the role of parental attitudes, we constructed dummies for a low, medium, or high share of women in the mother’s and the father’s occupation and included those interacted with wage and occupational prestige in the baseline regression (results not shown). While this makes the number of variables again rather high given the sample size, we find that if there are less than one third of women in the father’s occupation then men (but not women) put less weight on occupational prestige. None of the other odds ratios are statistically significantly different for women and men. This could be a reflection of more rigid gender roles for men (Valian, 1999). 23 This can also be thought of as controlling for the difference in culturally transmitted value systems (Corneo and Jeanne, 2010) or different identity payoffs (Humlum et al., 2012) affecting occupational choice. 25 TABLE 3 GENDER ROLES – PARENTAL BACKGROUND (ODDS RATIOS SHOWN) Wage Wage × low ability Wage × high ability Wage × low parental income Wage × high parental income Wage × low parental education Wage × high parental education Prestige Prestige × low ability Prestige × high ability Prestige × low parental income Prestige × high parental income Prestige × low parental education Prestige × high parental education Pseudo R2 Log Likelihood # of individuals Observations (1) Women 1.012 (0.015) 0.899*** (0.015) 1.012 (0.014) 0.992 (0.015) 1.013 (0.015) 0.978^ (0.014) 0.987 (0.021) 1.359*** (0.111) 1.010 (0.084) 1.303*** (0.115) 0.859* (0.071) 1.027 (0.093) 0.908 (0.073) 1.286^ (0.207) 0.082 -3,671.66 929 68,746 (2) Men 1.012 (0.011) 0.959*** (0.013) 1.008 (0.013) 1.008 (0.014) 1.013 (0.014) 1.007 (0.013) 1.007 (0.019) 1.357*** (0.093) 0.847** (0.057) 1.267*** (0.106) 0.899^ (0.064) 1.005 (0.080) 0.813*** (0.057) 1.146 (0.144) 0.055 -3,526.62 867 64,158 Notes Robust standard errors are shown in parentheses. ^ p<0.15, * p<0.10, ** p<0.05, *** p<0.01. Bold (†, ‡) in columns (1)-(2) indicates statistically significantly different odds ratios between men and women at the 1% (5%, 10%) percent level. Included but not shown: Unemployment, work hours, flag for imprecisely measured work hours. The odds ratios of Prestige x low ability are borderline statistically significantly different at a p-value of 0.102. 26 TABLE 4 ROBUSTNESS CHECKS (ODDS RATIOS SHOWN) Wage Wage × low ability Wage × high ability Wage × Short/ convenient work hours Wage × Job safety Wage × Effort and perseverance Wage × Not competitive Prestige Prestige × low ability Prestige × high ability Prestige × Short/ convenient work hours Prestige × Job safety Prestige × Effort and perseverance Prestige × Not Competitive Pseudo R2 Log Likelihood # of individuals Observations (1) 1.007 (0.010) 0.895*** (0.015) 1.014 (0.014) 1.033 (0.035) Women (2) 1.001 ‡ (0.009) 0.896*** (0.016) 1.009 (0.014) (3) 0.995 † (0.010) 0.894*** (0.015) 1.014 (0.014) 0.960*** (0.015) (4) 1.026*** (0.008) 0.960*** (0.012) 1.009 (0.012) 1.001 (0.034) 1.250*** ‡ (0.062) 0.950 (0.079) 1.353*** (0.118) 1.021*** (0.005) 1.017 (0.013) 1.205*** ‡ (0.065) 0.982 (0.081) 1.333*** (0.116) 1.215*** (0.054) 0.809*** (0.055) 1.330*** (0.109) 0.787 (0.141) 0.879* (0.066) 1.011 (0.037) 0.078 -3,659.18 922 68,228 (6) 1.024*** † (0.009) 0.959*** (0.013) 1.009 (0.012) 0.983 (0.014) 1.019*** (0.007) 1.298*** (0.069) 0.961 (0.080) 1.327*** (0.115) 0.881 (0.127) 0.873^ (0.072) Men (5) 1.021*** ‡ (0.008) 0.967*** (0.013) 1.004 (0.012) 0.077 -3,619.45 911 67,414 1.198*** ‡ (0.051) 0.788*** (0.055) 1.336*** (0.111) 0.998 (0.011) 1.117** ‡ (0.055) 0.817*** (0.055) 1.318*** (0.109) 0.988 (0.033) 1.141* (0.085) 0.077 -3,690.60 929 68,746 0.051 -3,511.81 860 63,640 0.053 -3,443.12 845 62,530 1.127* (0.069) 0.051 -3,541.60 867 64,158 Notes Robust standard errors are shown in parentheses. ^ p<0.15, * p<0.10, ** p<0.05, *** p<0.01. Bold (†, ‡) in columns (1)-(6) indicates statistically significantly different odds ratios between men and women at the 1% (5%, 10%) percent level. Included but not shown: Unemployment, work hours, flag for imprecisely measured work hours. 27 Robustness Checks Finally, in Table 4, we report the results of analyses using an additional measure of preferences of short/ convenient work hours, job safety, or a job that is challenging, in case that work hours do not adequately control for preference differences for such job characteristics; a psychosocial trait that has been found to influence occupational choice and may be related to gender differences in occupational choice: the non-cognitive trait of effort and perseverance from the PISA data (Antecol and Cobb-Clark, 2013; Cobb-Clark and Tan, 2011); and preference for competition (Croson and Gneezy, 2009; Kleinjans, 2009), but find no evidence that these alter our conclusions. In a different specification, we also included a measure of self-confidence (results not shown) in case that women have lower selfconfidence (Niederle and Versterlund, 2007), and therefore expect it to be more difficult to complete their education or to find work in occupations with higher salary or status. This could affect especially low-ability women. However, we find no effect for self-confidence for either gender once we control for ability. To ensure that our results are not driven by the assumption that women and men have the same wage, we also conduct our baseline estimation for women with wages that are 6% lower than the median wage (roughly corresponding to the gender wage gap unrelated to occupational segregation). The results (not shown) do not change. VI. CONCLUSIONS Despite women’s increased educational achievement, women and men often work in different occupations. This occupational segregation can explain up to one half of the raw gender wage gap, but it is not well understood why such segregation persists. In this paper, we investigate an explanation that is based on job attributes, and more precisely, the idea that women place more weight on occupational prestige than men. Women have been found to value an 28 occupation’s social contribution more than men, which we proxy with the occupational prestige of an occupation. We employ the theory of equalizing differences in a labor market to argue that if occupational prestige gives benefits to holders of occupations. If these benefits vary by gender, then differences in occupational choices result in wage differences, or a gender wage gap. To investigate this hypothesis, we use a Danish data set that includes rich information on individuals’ expected occupations, ability, parental background, and occupational characteristics. We find that women expect to work in occupations with higher occupational prestige and lower wages than men, with the greatest difference for low-ability individuals. This is consistent with the hypothesis that part of the gender wage gap can be explained by the occupational segregation caused by women’s stronger preference for occupational prestige – these occupations with higher occupational prestige have, in an equilibrium setting in a competitive labor market, lower wages. Counterfactual predictions show that a significant part (up to one half) of the gender wage gap caused by occupational segregation can be explained by these preference differences. We conclude from this that an important fraction of the gender wage gap results from different choices that women and men make that are based on differences in preferences for occupational prestige. While we are not able to identify the origin of these gender differences, we find some evidence in line with the hypothesis of gender roles as a potential source. If this is indeed the case, then gender differences in preferences for occupational prestige can help us understand why gender roles (through their effect on occupational choices) lead to gender differences in wages. Our data do not permit a causal analysis to identify whether preference differences result from gender roles or anticipated discrimination. The analysis can, however, help explain why the 29 narrowing of the gender wage gap has slowed down and remains significant (Goldin, 2006; Blau and Kahn, 2007) if gender roles are slow to change. APPENDIX A TABLE A1 OCCUPATION-SPECIFIC CHARACTERISTICS (SORTED BY OCCUPATIONAL PRESTIGE) Occupation Pilot Lawyer Doctor (GP) * Doctor (hospital) Researcher in private company Architect Associate professor Civil engineer Soccer player * Dentist Midwife Actor Programmer/System developer Psychologist Fashion designer Auditor Politician Musician/singer IT-consultant Journalist Ambulance driver/paramedic Person working in advertising Camera crew (movie/TV) Head clerk (public sector) Police officer Occupational Prestige Score Wage Unemployment 8.31 8.11 7.89 7.76 7.45 7.39 7.27 7.22 7.15 7.01 6.96 6.95 6.79 6.70 6.69 6.63 6.55 6.51 6.43 6.42 6.40 6.38 6.36 6.28 6.23 59.76 41.33 53.91 53.91 . 37.60 34.75 41.87 28.69 37.36 32.36 29.36 39.88 34.39 26.21 35.96 . 30.96 43.04 36.23 27.89 31.13 33.27 35.91 32.55 1.91 0.94 0.58 0.58 . 4.09 4.23 1.47 2.60 0.61 0.49 16.75 1.56 3.80 3.62 0.72 . 4.41 1.86 2.79 4.11 3.59 4.51 1.02 0.22 30 Occupation Real estate agent Author Army officer Photographer Graphic designer Cook HR-consultant Priest Laboratory technician Nurse Communication employee Physiotherapist High school teacher Insurance agent Business high school teacher * Bank employee Electrician Carpenter Dental assistant Office clerk Alternative health therapist Teacher Gardener Joiner/cabinet-maker Flight attendant Prison officer Sales person Nursing aide in a hospital * Welder Mason Secretary Auto mechanic Social worker Vocational teacher * Glazier * Plumber Hair dresser Farmer Preschool teacher (children aged 3-6) Train conductor * Librarian Cosmetologist Occupational Prestige Score Wage Unemployment 6.20 6.16 6.03 5.96 5.72 5.69 5.67 5.60 5.50 5.39 5.33 5.20 4.98 4.87 4.86 4.85 4.70 4.40 4.35 4.32 4.30 4.28 4.25 4.25 4.19 4.10 4.08 4.06 4.01 4.01 4.00 3.99 3.98 3.97 3.97 3.91 3.90 3.84 3.83 3.79 3.78 3.77 40.26 36.23 26.59 33.27 33.65 20.41 28.56 30.86 26.82 28.77 36.23 26.06 38.20 45.51 38.20 28.58 28.15 25.28 20.67 26.11 19.48 32.74 23.35 25.28 32.28 27.84 35.09 23.66 27.44 25.64 26.11 26.41 29.10 38.20 25.91 28.18 19.43 19.56 25.70 35.10 32.04 19.43 1.09 2.79 2.60 4.51 1.91 4.46 1.53 2.54 2.26 0.66 2.79 2.87 2.78 1.42 2.78 1.33 3.12 4.34 3.57 3.66 2.19 1.88 5.22 4.34 2.85 1.14 1.84 2.54 3.30 7.05 3.66 1.67 1.06 2.78 3.33 3.77 2.19 1.12 3.03 0.79 2.63 2.19 31 Occupation Occupational Prestige Score Wage Unemployment Security guard * Baker Waiter Machine operator Receptionist Building painter Medical Orderly* Mail carrier * Nanny/Child care worker In-Home caregiver Preschool teacher assistant (children aged 3-6) Fisherman * Kitchen assistant Sales assistant Butcher Farm worker Scaffolder * Nursing home assistant * Road worker * Window cleaner * Warehouse clerk Taxi driver * Trash collector * Mover * Bus/truck driver Unskilled construction worker Parking attendant * Cashier * Cleaner Advertising delivery person * Unemployment benefit recipient * Welfare recipient * Mean 3.65 3.40 3.40 3.28 3.25 3.16 3.13 3.07 3.01 2.94 2.89 2.88 2.88 2.84 2.74 2.74 2.74 2.72 2.71 2.58 2.58 2.49 2.46 2.45 2.41 2.29 2.22 1.87 1.57 1.31 0.68 0.43 4.55 27.19 24.26 22.09 28.51 24.35 25.57 23.66 25.54 21.27 20.45 23.66 3.55 3.71 6.25 2.50 4.31 5.65 2.54 2.93 6.17 4.92 2.54 12.96 20.41 21.14 21.42 19.56 29.20 23.66 25.46 25.69 25.48 22.49 28.75 25.48 22.49 28.39 27.19 21.14 21.96 25.11 . . 29.36 0.95 4.46 3.22 5.91 1.12 8.32 2.54 8.84 2.18 5.82 2.99 4.03 5.82 2.99 8.67 3.55 3.22 6.36 2.24 . . 3.25 * denotes occupations in which no one expected to work. Wage is measured as median hourly wage and divided by 5 to approximate 1 U.S dollar. The occupational prestige score is that of 18-29 year olds. Wage could not be determined for ‘researcher in private company’ and ‘politicians’. 32 TABLE A2 VARIABLES, DATA SOURCE AND SUMMARY STATISTICS OF WORKING SAMPLE BY GENDER: MEANS (STANDARD DEVIATIONS IN PARENTHESES) Variable Derivation (Data source) Attributes of expected occupation Occupational prestige evaluated from 0-10 by 18-29 Occ. prestige score years old (Ugebrevet A4). Median wage divided by average work hours (see Wage below) and divided by 5 to approximate 1 U.S. dollar (Statistics Denmark’s registers). Unemployment Percentage unemployment in occupation (Statistics Denmark’s registers). Work hours Average work hours in occupation (EU Labour Force Survey). Work hours imprecise An indicator variable for imprecise work hours (EU Labour Force Survey). = 1 if own gender is less than 10% in an occupation Own gender < 10% (Statistics Denmark’s registers). Education occupations Health occupations % women in mother’s occupation % women in father’s occupation = 1 if education related occupations (associate professor, nanny/ child care worker, any type of teacher and teacher assistant), 0 otherwise. = 1 if health related occupations (alternative health therapist, ambulance driver/ paramedic, dental assistant, dentist, doctor, in-home caregiver, midwife, nurse and nurse aides, medical orderly, nursing home assistant, psychologist), 0 otherwise. Percentage women in mother’s occupation (Statistics Denmark’s registers). Percentage women in father’s occupation (Statistics Denmark’s registers). Men Women (1) (2) 5.41 5.16 (1.52) (1.47) 32.27 30.37 ( 8.07) ( 7.46) 2.64 2.55 ( 1.93) ( 1.96) 40.46 39.13 (3.10) (2.44) 0.03 0.04 0.25 0.63 0.09 0.24 0.04 0.23 70.25 (22.76) 27.92 (26.41) 71.94 (20.32) 28.05 (26.71) Individual characteristics Ability Affecting choice after lower secondary school Tired of school Needed to earn money Know which sector Reading score (WLEREAD), lowest and 489.86 510.40 highest quartile used (PISA). (99.95) (93.67) Answer to “Here are some questions about what influenced your decision about what to do immediately after 9th or 10th grade. (Scale from 1 (none) - 5 (”extremely high”): What influence did the following have” (2004 follow-up survey). “You were tired of school”, 0.23 0.17 = 1 if “high” or “extremely high”. “You needed to earn some money”, 0.12 0.07 = 1 if “high” or “extremely high”, 0 otherwise. Answer to “You know today which sector or field you 0.72 0.71 want to work in. And you will probably stay there”, = 1 if “partly agree” or “totally agree”, 0 otherwise 33 Job characteristics Short/convenient work hours Job safety Job is challenging Competition Effort and perseverance Parental Characteristics Parental income (2004 follow-up survey). Answer to “Which of the following three qualities do you consider most important in a job?” (2004 follow-up survey). = 1 if “short/convenient work hours”, 0 otherwise. 0.03 = 1 if “job safety”, 0 otherwise. 0.17 (omitted category) Answer to “Outside the world of sports, people 0.48 should compete as little as possible” = 1 if “totally disagree” or “partly disagree”, 0 otherwise (2004 follow-up survey). Warm estimate of EFFPER (PISA). -0.00 (0.94) (Statistics Denmark’s registers) Parental income / 50.000 to approximate US $10.000 11.89 (5.37) 0.03 0.18 0.34 0.02 (0.94) 11.94 (5.41) Highest parental education Low = 1 if basic, high school or vocational, 0 otherwise. 0.59 0.61 Medium = 1 if short or medium, 0 otherwise. 0.31 0.30 High = 1 if long term, 0 otherwise. 0.11 0.09 Notes Bold (†, ‡) in columns (1)-(2) indicates statistically significantly different means between men and women at the 1% (5%, 10%) percent level. 34 FIGURE A1. Distribution of Wage – Occupations sorted by Prestige 35 lle d co ns tr B uc W us tionCle In are/tru w ane du ho ck or r Pr k s es Fa triausedriver ch e r l oo K Sal m a bu cler r Na l teitch es ss tch k nn ac en ass istaer y/ In he as is nt Ch -H r s ta ild o as ist nt Bu came sistant il r e h a n M din w elpet ac Re g or r hi ce pa ke n e p in r optionter er is t Co B at Pr sm Wakor es et a er ch L ol ite oo ib og r l t rar ist Ha Feac ian ir ar he S dr m r Auoc Pluesser to ial m er m wo be Seech rker cr an r e ic SaBla Matary c Jo le ks so P F s in li r is p m n er gh o e it Al /c t n rs h te ab at of on rn in ten fic at et d er ive - a he Ga ma nt al T rde ke th e n r De O th ac er nt ffi era he al ce p r is a C s cle t Ba arsist rk E Co Hig Ins nk le penant h ur emctri ter m c s a m un P chonceplo ian ica hy ol a ye La tio sio teage e bo n th c nt ra emera he r to ry plo pis te N y e t HR chn urse G -co Piciae ra n p n s r ie O Phic ultast ffi h d C n ce o e o t r i tog sig ok H n R n Pe Cead ea therap er h le am c r s Am on e ler st Aarmer P a bu w ra k (p oli te uth y la ork cre ub ce ag or nc in w li o e e g (mc s ffic nt dr in o e e ive ad v cto r r/p veie/T r) ar rtis V) a Pr I M T- Joumeing og us co rn di ra Fa icia nsualisc m m er shi n/s ltant in t o /S ys P n d Audge te sy es it r m ch ig or de ol ne ve og r lo ist As A per M C so i id ctor v cia il D w te e e ife Do prnginntis ct Aofe ee t or r s r (h chi so os te r c Lapita t wy l) Pi er lo t Un sk i 0 20 Wage 40 60 APPENDIX B: DATA CONSTRUCTION AND SAMPLE SELECTION We match occupation-specific variables and expected occupations using the four digit DISCO code, the official Danish version of the International Classification of Occupations (ISCO) by the International Labour Organisation. This is generally straightforward though in 16 cases we are not able to distinguish occupations in the ISCO classification, implying that these occupations are coded with the same occupation-specific characteristics. This applies to 304 individuals, including camera men and women/ photographers, journalists/ authors/ communication employees, cooks/ kitchen assistants, carpenters/ joiner/ cabinet-makers, secretaries/ office clerk, alternative therapists/ hair dressers/ cosmetologists, and farmers/ farm assistants. Another side of this issue is that occupations from the occupational prestige survey often share ISCO codes with occupations not in the survey. For instance, fashion designers share an ISCO code with decorators, interior architects, and other types of designers. Table B1 summarizes the sample selection by gender. Our final sample excludes individuals if the reading score is missing or if the individual has no parent in the registry data. 50 men and 34 women are dropped because of missing answers to the expected occupation question. Also excluded are individuals who answered “don’t know” (140 men and 120 women) or “nothing” (20 men and 15 women). Along with wage, our primary explanatory variable is occupational prestige derived from the ranking of 99 specific occupations. Some individuals gave answers too vague to be classified as a specific occupation (e.g., “something with people” or “trade”) leading to a drop of 68 men and 105 women and leaving in total 2,491 observations. 72.4% of these individuals expect to work in one of the ranked occupations. 346 men and 342 women expect to work in occupations not included in the ranking. The ranking does not include managerial level occupations and self-employed/owners, and 170 (78 men and 92 women) individuals 36 are dropped for this reason. The remaining 518 individual aspire to work in traditional – but unranked – occupations. Among the largest unranked occupations are economists (19 individuals) and translators (13). Finally, dropped 7 individuals who aspire to work in occupations that could not be matched to an ISCO code (“Researcher in a private company” and ”Politician”). In total we match individuals to 74 of the ranked occupations. TABLE B1 SAMPLE SELECTION Sample Restriction Danish PISA Longitudinal Data * Reading score, parental income or parental education missing Occupational expectations No answer recorded Answer “don’t know” Answer “nothing” Answer too vague Occupation not in occ. prestige survey Occupation has no wage data Number of individuals Reshape of data: 1,796 ⋅ 99 Occupations in which no one expects to work or without wage data Estimation sample Individuals dropped Wome Men Total n Occupation s dropped Number of observation s 3,073 9 21 30 3,043 50 140 20 68 346 34 120 15 105 342 84 260 35 173 688 7 2,959 2,699 2,664 2,491 1,803 1,796 1,796 177,804 25 ⋅ 1,796 = 44,900 132,904 132,904 * This includes individuals who were tested in PISA and answered the follow-up survey. Note that Statistics Denmark does not allow the reporting of characteristics for fewer than four individuals. If a respondent answered more than one occupation we use the first occupation mentioned. In the sample of 1,796, 123 individuals mentioned more than one expected occupation. As a robustness check the baseline estimations were conducted dropping individuals mentioning more than one occupation. Results are in line with our baseline results. 37 Table B2 compares the estimation sample (1) with all individuals dropped (2) and by reason for dropping (3)-(5). Comparing columns (1) and (2) shows no difference in parental education between the individuals in and out of the sample while parental income and ability are somewhat lower for individuals in the sample. Column (4) shows that the differences between individuals in and out of the sample are driven by those expecting to work in occupations not in the ranking. A likely explanation is that managerial occupations are not included in the prestige ranking. TABLE B2 COMPARISONS OF OBSERVATIONS IN AND OUT OF SAMPLE Female Reading score /100 Parental income Parental education Low Medium High N (1) In Sample (2) Not in sample 0.517 5.005 (0.973) 11.917 (5.393) 0.496 5.106 (0.929) 12.286 ‡ (6.172) 0.601 0.303 0.095 1,796 0.578 0.308 0.114 1,247 (3) (4) (5) Sub groups of dropped observations Too Not in “Nothing” or vague survey “don't know” 0.458 ‡ 0.607 † 0.497 5.031 5.076 ‡ 5.338 (0.960) (0.783) (0.945) 11.917 13.144 ‡ 12.040 (5.475) (8.476) (5.475) 0.617 0.281 0.102 295 0.543 0.306 0.150 ‡ 173 0.580 0.313 0.108 688 Table B3 shows the marginal effects of a generalized ordered logit estimation with the outcome variable given by the respondents’ answer to the question: “You know today which sector or field you want to work in. And you will probably stay there”. Of the 3,043 individuals, 6 did not answer the question while 76 answered “don’t know”, leaving 2,961 individuals answering from “totally disagree” to “totally agree”. The results show a clear relationship between uncertainty about which sector to work in and answers given with respect to specific occupation at age 30. Vague answers are primarily given by the respondents who are uncertain about the sector. 38 TABLE B3 MARGINAL EFFECTS OF GENERALIZED ORDERED LOGIT: “YOU KNOW TODAY WHICH SECTOR OR FIELD YOU WANT TO WORK IN. AND YOU WILL PROBABLY STAY THERE” (1) (2) (3) Totally/ partly disagree Partly/ totally Both/ and agree Female 0.011 0.005 -0.016 (0.012) (0.005) (0.017) Reading Ability 0.009 0.004 -0.013 (0.007) (0.003) (0.009) Parental income 0.004*** -0.002** -0.001 (0.001) (0.001) (0.002) Low parental education -0.041*** -0.017*** 0.059*** (0.013) (0.005) (0.018) High parental education 0.032^ 0.014^ -0.046^ (0.021) (0.009) (0.030) Short/convenient work 0.056** 0.024** -0.080** hours (0.028) (0.012) (0.040) Job safety 0.003 0.001 -0.004 (0.015) (0.006) (0.022) Too vague 0.146*** 0.061*** -0.207*** (0.023) (0.010) (0.032) Not in survey 0.018 0.007 -0.025 (0.014) (0.006) (0.020) Don't know and nothing 0.299*** 0.077*** -0.375*** (0.018) (0.018) (0.027) Pseudo R2 0.060 Log likelihood -2,431.09 Observations 2,961 Notes Standard errors shown in parentheses, * p<0.10, ** p<0.05, *** p<0.01. Overall, the evidence implies that the working sample consists of individuals with slightly lower ability and SES. As discussed in the results section, these are the individuals most affected by the gender differences in occupational prestige and wages. Since we do control for ability in our analysis and, in some cases, for parental background, we do not expect that the loss of sample affects our results in an important way. We also report further robustness checks in Appendix C. 39 APPENDIX C: ROBUSTNESS CHECKS – THE TREIMAN SCALE OF OCCUPATIONAL PRESTIGE AND SAMPLE SELECTION In our main specification, we use the occupational prestige scores from the Danish Ugebrevet survey. We prefer this measure to the Ganzeboom and Treiman scale because it is based on a recent assessment by Danish individuals aged 18 to 29 of specific occupations relevant in a Danish context, and as such a better measure of the prestige of occupations assigned by Danish youth. Hence we consider the ranking to be a better representation of the relevant occupational prestige for Danish youth when choosing education and career path. In what follows, we present robustness checks that show that a) the use of the Ganzeboom and Treiman prestige scale does not change our results in any significant way, and b) that the non-random sample selection resulting from the omission of occupations not included in the Danish survey does not affect our results. The Treiman Scale Ganzeboom and Treiman (1996) assign prestige to occupations using the International Standard Classification of Occupations (ISCO). In what follows, we report the results using this updated version of Treiman’s (1977) Standard International Occupational Prestige Scale (SIOPS). Table C1 reproduces Table 1 with the SIOPS prestige scale. There is a difference in the number of observations (but not in the number of individuals) since a few of the occupations we are able to match in the Danish prestige survey are categorized as the same occupation in the SIOPS scale, and the SIOPS scale includes a few occupations that are broader categories than in the prestige survey. In total, the second effect is larger, and the number of observations in the results shown in Table C1 is larger than in Table 1 as each individual has more occupations to choose from. The results are comparable to the results presented in Table 1 indicating that the selected prestige ranking is not a major concern with 40 respect to the generalizability of our results. TABLE C1 REPRODUCTION OF TABLE 1 USING THE SIOPS PRESTIGE SCALE (1) 0.997 (0.006) Wage Wage × low ability Wage × high ability Prestige Prestige × low ability Prestige × high ability Unemployment Work hours Women (2) 0.910*** (0.008) 1.073*** (0.004) 0.794*** (0.020) 0.867*** (0.010) 0.063 -3937.04 929 85,468 0.859*** (0.024) 0.817*** (0.011) 0.097 -3791.65 929 85,468 (3) 0.898*** (0.011) 0.870*** (0.022) 1.088*** (0.017) 1.080*** (0.005) 0.986^ (0.009) 1.009 † (0.007) 0.860*** † (0.025) 0.802*** (0.011) 0.126 -3671.55 929 85,468 (4) 1.027*** (0.006) Men (5) 1.028*** (0.007) 0.999 (0.003) 0.948** (0.021) 1.000 (0.010) 0.071 -3643.97 867 79,764 0.947** (0.022) 1.001 (0.010) 0.071 -3643.94 867 79,764 (6) 1.031*** (0.009) 0.947*** (0.016) 1.017 (0.013) 1.002 (0.005) 0.979*** (0.007) 1.030*** † (0.008) 0.933*** † (0.023) 0.990 (0.010) 0.089 -3572.00 867 79,764 Pseudo R2 Log Likelihood # of individuals Observations Notes Odds ratios shown. Robust standard errors are shown in parentheses. ^ p<0.15, * p<0.10, ** p<0.05, *** p<0.01. Bold (†, ‡) in columns (1)-(6) indicates statistically significantly different odds ratios between men and women at the 1%, 5%, 10%) percent level. Also included but not shown is a flag for imprecisely measured work hours. Sample Selection: Omission of Occupations from our Sample The prestige measure used in our estimations is based on a ranking of 99 representative occupations, but we were only able to match 74 expected occupations. Hence, there is some concern of the effects of this non-random sample selection on our results. Since all of those are, however, included in the Ganzeboom and Treiman (1996) SIOPS prestige scale, we can use it to assess whether the omission of occupations affects our results. Table C2 reproduces Table 1 using the larger sample. The number of observations increases significantly for two reasons: First, the number of individuals increases since we now have 825 more individuals in the sample who expect to work in occupations not included in the Danish prestige survey; and second, since each individual can choose among 41 more occupations. The results presented in Table C2 are qualitatively similar to the results presented in Table C1 and Table 1, and we conclude from this that there is no evidence that the omission of occupations in our analysis drives our results. TABLE C2 REPRODUCTION OF TABLE 1 WITH A LARGER SAMPLE, USING THE SIOPS PRESTIGE SCALE Wage (1) 1.003 (0.004) Wage × low ability Wage × high ability Prestige Prestige × low ability Prestige × high ability Unemployment Work hours Women (2) 0.920*** (0.006) 1.068*** (0.003) 0.808*** (0.016) 0.938*** (0.007) 0.043 -5852.35 1,353 124,476 0.847*** † (0.018) 0.894*** (0.008) 0.076 -5656.00 1,353 124,476 (3) 0.905*** (0.009) 0.919*** † (0.019) 1.079*** (0.014) 1.072*** (0.004) 0.992 (0.008) 1.005 † (0.005) 0.849*** ‡ (0.019) 0.884*** (0.008) 0.043 -5852.35 1,353 124,476 (4) 1.028*** (0.004) Men (5) 1.028*** (0.005) 1.000 (0.003) 0.908*** (0.017) 1.006 (0.007) 0.053 -5428.46 1,268 116,656 0.908*** † (0.018) 1.006 (0.007) 0.053 -5428.46 1,268 116,656 (6) 1.030*** (0.006) 0.964*** † (0.011) 1.013^ (0.009) 1.003 (0.004) 0.981*** (0.006) 1.023*** † (0.006) 0.899*** ‡ (0.018) 1.000 (0.007) 0.064 -5364.49 1,268 116,656 Pseudo R2 Log Likelihood # of individuals Observations Notes Robust standard errors are shown in parentheses. ^ p<0.15, * p<0.10, ** p<0.05, *** p<0.01. Bold (†, ‡) in columns (1)-(6) indicates statistically significantly different odds ratios between men and women at the 1% 5%, 10%) percent level. Also included but not shown is a flag for imprecisely measured work hours. ACKNOWLEDGMENTS We would like to thank Ugebrevet A4 and Henrik Feindor Christensen at Analyse Denmark for access to the occupational prestige survey, and Julie Cullen, Mona Larsen, Helena Skyt Nielsen, Stefanie Schurer, Edward J. Schumacher, Stephan Thomsen, and participants at the AEA, SOLE, ESPE, and WEA meetings, the IZA/CEPR European Summer Symposium in Labour Economics, as well as seminar participants at KORA, Aarhus University, and 42 Binghamton University for helpful comments. Kleinjans thanks the Milton A. Gordon Fund for Scholarly & Creative Activities at CSUF for funding. REFERENCES AGUSTIN, L. R. (2011). The Policy on Gender Equality in Denmark. Directorate General for internal Policies. Policy Department C: Citizen’s rights and constitutional affairs, gender equality. European Parliament. AHRENS, J. A. and O’BRIEN, K. M. (1996). Predicting Gender-Role Attitudes in Adolescent Females: Ability, Agency, and Parental Factors. Psychology of Women Quarterly, 20. 409-417. ANDREONI, J. and VESTERLUND, L. (2001). Which is the Fairer Sex? Gender differences in altruism, Quarterly Journal of Economics, 116(1), 293-312. ANKER, R. (1997). Theories of Occupational Segregation by Sex: An overview. International Labor Review, 136(3),315-339. ANTECOL, H. and COBB-CLARK, D. A. (2013). Do Psychosocial Traits Help Explain Gender Segregation in Young People’s Occupations? Labour Economics, 21, 59-73. BAYARD, K., HELLERSTEIN, J., NEUMARK, D. and TROSKE, K. (2003). New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employer-Employee Data. Journal of Labor Economics, 21(4), 887-922. BETTIO, F. and VERASHCHAGINA, A. (2009). Gender segregation in the labour market: Root causes, implications and policy responses in the EU. Luxemburg: European Commission Directorate-General for Employment, Social Affairs and Equal Opportunities. BETTS, J.R. (1996). What do Students Know About Wages? Evidence from a survey of Undergraduates. Journal of Human Resources, 31(4), 27-56. BLAU, F. D. (2012). Gender, Inequality, and Wages. Oxford: Oxford University Press. ____ , FERBER, M. A. and WINKLER, A. E. (2010). The Economics of Women, Men, and Work. Upper Saddle River, NJ: Prentice-Hall. ____ and KAHN, L. M. (2007). The Gender Pay Gap. The Economists’ Voice, 4(4), article 5. ____ and KAHN, L. Gender Differences in Pay. (2000). Journal of Economic Perspectives, 14(4), 75-99. BOSKIN, M. J. (1974). A Conditional Logit Model of Occupational Choice. Journal of Political Economy, 82(2) part 1, 389-398. BRUZE, G., SVARER, M. and WEISS, Y. (2015). The Dynamics of Marriage and Divorce. Journal of Labor Economics, 33(1), 123-170. CAMPBELL, A. (2003). A Mind of Her Own: The evolutionary psychology of women. New York: Oxford University Press. CHARTRAND, J. M., DOHM, T. E., DAWIS, R. V. and LOFQUIST, L. H. (1987). Estimating Occupational Prestige. Journal of Vocational Behavior, 31, 14-25. COBB-CLARK, D. A. and TAN, M. (2011). Noncognitive skills, occupational attachment, and relative wages. Labour Economics, 18, 1-13. 43 CORNEO, G. and JEANNE, O. (2010). Symbolic values, occupational choice, and economic development. European Economic Review, 54, 237-251. CROSON, R. and GNEEZY, U. (2009). Gender Differences in Preferences. Journal of Economic Literature, 47(2), 1-27. DOLTON, P. J., MAKEPIECE, G. H. and VAN DER KLAAUW, W. (1989). Occupational Choice and Earnings Determination: The role of sample selection and non-pecuniary factors. Oxford Economic Papers New Series, 41(3), 537-595. DRYLER, H. (1998). Parental Role Models, Gender, and Educational Choice. The British Journal of Sociology, 49(3), 375-398. ECCLES, J. S. (1994). Understanding Women’s Educational and Occupational Choices: Applying the Eccles et al. model of achievement-related choices. Psychology of Women Quarterly, 18, 585-609. ELIOT, L. (2009). Pink Brain, Blue Brain: How small differences grow into troublesome gaps - and what we can do about it. Boston, New York: Mariner Books, Houghton Mifflin Harcourt. ENGLAND, P. (1979). Women and Occupational Prestige: A case of vacuous sex equality. Signs, 5(2), 252-265. ____ (1982). The Failure of Human Capital Theory to Explain Occupational Sex Segregation. Journal of Human Capital, 17(3), 358-370. FASSINGER, R. E. (1990). Causal Models of Career Choice in Two Samples of College Women. Journal of Vocational Behavior, 36, 225-248. FERSHTMAN, C. and WEISS, Y. (1993). Social Status, Culture, and Economics Performance. Economic Journal, 103 (July), 946-959. FERSHTMAN, C. and WEISS, Y. (1998). Social Rewards, Externalities, and Stable Preferences. Journal of Public Economics, 70, 53-73. FINE, C. (2010). Delusions of Gender: How our minds, society, and neurosexism create difference. New York, London: W. W. Norton & Company. FISCHHOFF, B., PARKER, A. M., BRUINE DE BRUIN, W., DOWNS, J., PALMGREN, C., DAWES, R. and MANSKI, C. F. (2000). Teen Expectations of Significant Life Events. Public Opinion Quarterly, 64, 189-205. FORTIN, N. M. (2008). The Gender Wage Gap among Young Adults in the United States: The importance of money versus people. Journal of Human Resources, 43, 885-918. GANZEBOOM, H. B. G., DE GRAAF, P. M., and TREIMAN, D. J. (1992). A standard international socio-economic index of occupational status. Social Science Research, 21, 1 -56. GOLDIN, C. (2006). The Quiet Revolution that Transformed Women’s Employment, Education, and Family (Richard T. Ely Lecture), American Economic Review Papers and Proceedings, 96(2), 1-21. ____ , KATZ, L. F. and KUZIEMKO, I. (2006). The Homecoming of American College Women: The Reversal of the College Gender Gap. Journal of Economic Perspectives, 20(4), 133-156. GROVE, W. A., HUSSEY, A. and JETTER, M. (2011). The Gender Pay Gap Beyond Human Capital: Heterogeneity in Noncognitive Skills and in Labor Market Tastes. Journal of Human Resources, 46(4), 827-874. 44 HAMERMESH, DS. (1999). Changing Inequality in Markets for Workplace Amenities. Quarterly Journal of Economics, CXIV(4), 1085-1123. HELLERSTEIN, J., NEUMARK, D. and MCINERNEY, M. (2008). Changes in Workplace Segregation in the United States: Evidence from the 1990 and 2000 Decennial Employer-Employee Datasets. In S. Bender, J. Lane, K. Shaw, F. Andersson and T. von Waechter, T. (eds), The Analysis of Firms and Employees: Quantitative and Qualitative Approaches. Chicago: University of Chicago Press, pp. 163-195. HUMLUM, M. K., KLEINJANS, K. J. and NIELSEN, H. S. (2012). An Economic Analysis of Identity and Career Choice. Economic Inquiry, 50(1), 39-61. JACOBS, J. E., CHHIN, C. S. and BLEEKER, M. M. (2006). Enduring links: Parents’ expectations and their young adult children's gender-typed occupational choices. Educational Research and Evaluation, 12(4), 395–407. JENSEN, T. P. and ANDERSEN, D. (2006). Participants in PISA 2000 – Four Years Later. In j. Mejding and A. Roe (eds), Northern Lights on PISA 2003 - A Reflection from the Nordic Countries. Denmark: Nordic Council of Ministers. KLEINJANS, K. J. (2010). Family Background and Gender Differences in Educational Expectations, Economics Letters, 107, 125-127. ____ (2009). Do Gender Differences in Preferences for Competition Matter for Occupational Expectations? Journal of Economic Psychology, 30(5), 701-710. LAMBERT, P. A. (2008). The Comparative Political Economy of Parental Leave and Child Care: Evidence from Twenty OECD Countries. Social Politics, 15(3), 315-344. LARSEN, M. and HOULBERG, H. S. B. (2013). Lønforskelle Mellem Mænd og Kvinder 2007-2010. Copenhagen, Denmark: SFI-Det Nationale Forskningscenter for Velfærd 13:24. LØNKOMMISSIONEN (2010). Lønkommissionens Redegørelse: Løn, Køn, Uddannelse og Fleksibilitet. Copenhagen, Denmark. MAGNUSSON, C. (2009). Gender, Occupational Prestige, and Wages: A Test of Devaluation Theory. European Sociological Review, 25(1), 87-101. MARINI, M. M., FAN, P. L., FINLEY, E. and BEUTEL, A. M. (2006). Gender and Job Values. Sociology of Education, 69(1), 49-65. NIEDERLE, M. and VESTERLUND, L. (2007). Do women shy away from competition? Do men compete too much? Quarterly Journal of Economics, 122(3), 1067-1101. OREOPOULOS, P. and SALVANES, K. (2011). Priceless: The Nonpecuniary Benefits of Schooling. Journal of Economic Perspectives, 25(1), 159–184. POLACHEK, S. W. (1981). Occupational Self-Selection: A Human Capital Approach to Sex Differences in Occupational Structure. The Review of Economics and Statistics, 63(1), 60-69. POWELL, M. and ANSIC, D. (1997). Gender differences in risk behavior in financial decision-making: An experimental analysis. Journal of Economic Psychology, 18, 605828. ROSEN, S. (1986). The Theory of Equalizing Differences. In O. Ashenfelter and R. Layard (eds), Handbook of Labor Economics 1, Elsevier Science Publishers, pp. 641-692. ROTHSTEIN, J. and ROUSE, C. E. (2011). Constrained After College: Student Loans and Early Career Occupational Choices. Journal of Public Economics, 95(1), 149-163. 45 SHAUMAN, K. A. (2006). Occupational Sex Segregation and the Earnings of Occupations: What causes the link among college-educated workers? Social Science Research, 35, 577-619. SCHOON, I. (2001). Teenage Job Aspirations and Career Attainment in Adulthood: A 17year follow-up study of teenagers who aspired to become scientists, health professionals, or engineers. International Journal of Behavioral Development, 25(2), 124-132. TREIMAN, D. J. (1977). Occupational Prestige in Comparative Perspective. New York: Academic Publishers. TURNER, S. E. and BOWEN, W. G. (1999). Choice of Major: The Changing (Unchanging) Gender Gap. Industrial and Labor Relations Review, 52(2), 289-313. VALIAN, V. (1998). Why so slow? The advancement of women. Cambridge, Massachusetts, London, England: The MIT Press. VELLA, D. (1994). Gender roles and human capital investment: the relationship between traditional attitudes and female labour market performance. Economica, 61(242), 191211. WARREN, J. R., SHERIDAN, J. T. and HAUSER, R. M. (1998). Choosing a Measure of Occupational Standing: How Useful Are Composite Measures in Analyses of Gender Equality in Occupational Attainment? Sociological Methods & Research, 27(1), 3-76. WISWALL, M. and ZAFAR, B. (2011). Determinants of College Major Choice: Identification Using an Information Experiment. Federal Reserve Bank of New York Staff Reports; no. 500. ZAFAR, B. (2013). College Major Choice and the Gender Gap. Journal of Human Resources, 48(3), 545-595. ZHAN, Y. (2012). Money vs. Prestige: Cultural Attitudes and Occupational Choices. Mimeo, University of California, San Diego. 46