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This paper explores the reasons behind the decline in the gender wage gap, particularly in the 1980s.

January 1, 1993

Why the Gender Gap in Wages Narrowed in the 1980s

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This paper explores the reasons behind the decline in the gender wage gap, particularly in the 1980s.
Analyzed three data sets: Current Population Survey, Panel Study of Income Dynamics, National Longitudinal Survey.
Examined measurable work-related characteristics such as schooling and work experience.
Convergence in work-related characteristics accounts for 33% to 50% of the narrowing wage gap.
Relative increase in women’s returns to experience also contributed significantly.
Declining wages in blue-collar occupations helped reduce the wage gap.

Abstract

Since 1976 the gender gap in wages on average declined by about 1% per year. This article focuses on identifying the factors underlying this trend. Three data sets are analyzed-the Current Population Survey, the Panel Study of Income Dynamics, and the National Longitudinal Survey. We find that convergence in measurable work-related characteristics (schooling and work experience) explains one-third to one-half the narrowing. The remainder is attributable to a relative increase in women's returns to experience as well as to declining wages in blue-collar work and other factors.

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Why the Gender Gap in Wages Narrowed in the 1980s

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