Subject of Degree and the Gender Wage Differential: Evidence from the UK and Germany

13 Pages Posted: 9 Sep 2002

See all articles by Stephen J. Machin

Stephen J. Machin

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP); London School of Economics & Political Science (LSE) - Department of Economics

Patrick A. Puhani

Leibniz Universität Hannover; University of St. Gallen - Swiss Institute for International Economics and Applied Economic Research; IZA Institute of Labor Economics; Université Paris II - Panthéon-Assas

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Date Written: August 2002

Abstract

We show that controlling for subject of degree explains a significant part of the male/female gender wage differential amongst graduates. Using data from the labour force surveys of the United Kingdom and Germany, we find similar results in these two countries: subject of degree explains about 2-4 percent higher wages of male over female graduates after controlling for age, industry, region, part-time and public sector employment. This is a significant part (between 9 to 19 percent) of the overall male/female gender wage gap, and an even larger amount of the part explained by factors entered into wage equations (at around 20 to 29 percent of the explained component).

Keywords: Gender Wage Gap, Field of Major

JEL Classification: J16, J31, J71

Suggested Citation

Machin, Stephen J. and Puhani, Patrick A., Subject of Degree and the Gender Wage Differential: Evidence from the UK and Germany (August 2002). Available at SSRN: https://ssrn.com/abstract=327562

Stephen J. Machin (Contact Author)

London School of Economics & Political Science (LSE) - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom

London School of Economics & Political Science (LSE) - Department of Economics ( email )

Houghton Street
London WC2A 2AE
United Kingdom

Patrick A. Puhani

Leibniz Universität Hannover ( email )

Institut für Arbeitsökonomik
Koenigsworther Platz 1
30167 Hannover, DE 30167
Germany

University of St. Gallen - Swiss Institute for International Economics and Applied Economic Research ( email )

Dufourstr. 48
St. Gallen, 9000
Switzerland
+41 71 224 2341 (Phone)
+41 71 224 2298 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Université Paris II - Panthéon-Assas

12 place du Pantheon
Paris cedex 06, 75231
France

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