On Level Ground? Gender, Trial Employment, and Initial Salaries

• In Event: 451 - Regular Session. It’s All About the Money: Gender Pay Disparity

Abstract

Gender disparities in wages exist due to the shortfall in wages women sustain relative to men at the point of organizational entry. This article develops a trial approach to test for the presence of demand-side contributions to initial wage inequality and proposes an organizational practice through which it is lessened—internships. Using data on several hundred professionals that attended an elite private business school, we find that internships narrow that gap between men and women’s initial salaries. For men, there is no difference in salary offers from employers where an internship occurs versus one where an internship does not occur. However, women receive higher initial salaries from employers where an internship takes place versus where an internship does not. We close by discussing the contribution of our study to literature on inequality, organizations, and labor markets.

Authors

• Adina Sterling, Washington University - St. Louis

• Roberto M. Fernandez, Massachusetts Institute of Technology