The Gender Pay Gap Beyond Human Capital: Heterogeneity in Noncognitive Skills and in Labor Market Tastes

Journal of Human Resources, Volume 46, Number 4, Winter 2011, pp. 827-874

49 Pages Posted: 30 Mar 2013 Last revised: 24 Feb 2014

See all articles by Wayne A. Grove

Wayne A. Grove

Le Moyne College - Department of Economics

Andrew Hussey

University of Memphis - Economics

Michael Jetter

University of Western Australia; IZA

Date Written: March 27, 2013

Abstract

Focused on human capital, economists typically explain about half of the gender earnings gap. For a national sample of MBAs, we account for 82 percent of the gap by incorporating noncognitive skills (e.g., confidence and assertiveness) and preferences regarding family, career, and jobs. Those two sources of gender heterogeneity account for a quarter of the "explained" pay gap, with half due to human capital variables and the other quarter due to hours worked and current job characteristics. Female MBAs appear to pay a penalty for "good citizen" behavior (choosing jobs that contribute to society) and characteristics (higher ethical standards).

Keywords: gender, pay differentials, human capital, noncognitive skills, non-monetary benefits, professional labor markets

JEL Classification: J31, J16, J44, J24, J32, D83, D84

Suggested Citation

Grove, Wayne A. and Hussey, Andrew J. and Jetter, Michael, The Gender Pay Gap Beyond Human Capital: Heterogeneity in Noncognitive Skills and in Labor Market Tastes (March 27, 2013). Journal of Human Resources, Volume 46, Number 4, Winter 2011, pp. 827-874, Available at SSRN: https://ssrn.com/abstract=2240312 or http://dx.doi.org/10.2139/ssrn.2240312

Wayne A. Grove (Contact Author)

Le Moyne College - Department of Economics ( email )

1419 Salt Springs Road
Syraucse, NY 13214

HOME PAGE: http://webserver.lemoyne.edu/grovewa/

Andrew J. Hussey

University of Memphis - Economics ( email )

Memphis, TN 38152
United States

Michael Jetter

University of Western Australia ( email )

35 Stirling Highway
Crawley, Western Australia 6009
AUSTRALIA

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