Earnings and Percentage Female: A Longitudinal Study

Comparable worth advocates assume that the relation between earnings and percentage female in an occupation is due to crowding or other forms of discrimination. An alternative explanation is that the relation stems from women freely choosing different occupations. Using longitudinal data to control for time-invariant omitted variables, as well as cross-sectional data (for comparison with previous research), we find that although men's estimated penalty is not reduced, the percentage female penalty falls substantially for women and is not statistically significant. These results imply that estimates of the percentage female effect based on cross-sectional data may be inflated for women–except for those with intermittent labor force participation. This group does experience a sizeable penalty for working in female-dominated occupations. Hence, a comparable worth policy would most likely benefit women with discontinuous employment.