Labor market mobility and cash compensation: The moderating effects of race and gender

Building upon the gender-based study conducted by Brett and Stroh (1997), we examined the moderating effects of gender and race on the relationship between changing employers and compensation attainment. The results suggest that, among graduates of M.B.A. (master of business administration) programs, the pay premium associated with an external labor market strategy is primarily a white-male phenomenon. White-male pay differentials were observed only among graduates who changed employers. These results challenge traditional labor-economic models of the compensation attainment process.