The evolution of the gender wage gap

This article examines the evolution of the gender wage gap by the decomposition of the gap at various experience levels. For the analysis, we use rich administrative data on wage and work histories for West-German workers with apprenticeship training. We find a pronounced gap at entry into first employment, which stays virtually constant throughout the early career. Sex segregation in the occupational qualification explains a large portion of these differences and leads to a permanent wage disadvantage for women. We explore how sensitive these results are to the fact that women have high dropout rates during their early career and discuss the economic implications. (C) 2004 Elsevier B.V. All rights reserved.