A tale of two labor markets—how wage penalty for entering women’s occupations varies by skill level

• In Event: 40860 - Section on Economic Sociology Roundtables
  In Refereed Roundtable (60 minute): Table 2. Reconfiguring Work

Abstract

Occupational sex segregation has been stagnant in the United States over the past two decades. The cause remains unclear. This study links the stagnation to economic polarization since the 2000s in the U.S. labor market. I argue that the growing wage disparity between the higher- and lower-skilled workers has mitigated the wage penalty for entering occupations with more women in high-skilled occupations. Therefore, high-skilled women are economically motivated to pursue careers in these occupations. Moreover, I discuss how the wage penalty vary not only by occupational skill level but also by gender-stereotyped occupational skills. Empirical analyses use fixed effects models with micro-level data from the National Longitudinal Surveys of Youth (NLSY97) (1997–2019) and time-varying occupation-level data from the Occupational Information Network (O*NET) (2003–2019) and American Community Survey (ACS) (2000–2019). Results show that, on average, people are not penalized for entering high-skilled occupations with more women. In low-skilled occupations, however, people are penalized for entering occupations that do not conform to their traditional gender roles. Moreover, gender inequality associated with occupational sex segregation has persisted in nuanced ways. This study also sheds light on the large within-occupation gender wage gap in high-skilled occupations and the declining economic return to education for women.

Author

• Meiying Li, Cornell University