Unpacking the Black Box of Tastes: Altruism and the Gender Pay Gap

• In Event: Occupational Segregation and the Wage Gap Between Men and Women

Abstract

This paper examines the relationship between gender differences in non-pecuniary workplace preferences and human capital investments. Using survey data on traditional bachelor’s degree-seeking first-time undergraduates, I document trends in the relative importance of five workplace preferences (balancing work and family, balancing work and leisure time, being an expert, helping others, and making decisions) to salary. I find that workplace preferences became less important relative to salary as students approached the workforce. Second, I find that workplace preferences, particularly preferences for helping others as a part of one’s job, were positively associated with female-dominated majors and occupations (e.g., education and health care fields) and negatively associated with male-dominated majors and occupations (e.g., business and STEM fields). Third, I find that preferences for helping others explain a significant portion (12 percent) of the early-career gender wage gap; women were more likely to choose jobs within the same field that involved helping others and were associated with lower wages.

Author

• Samantha Batel Kane, Brown University
  Presenting Author