Objective
We test whether increasing gender earning differences are associated with the surprising decline in the share of women working in information science (IS).
Methods
We use representative data to estimate the gender earnings differential from 1995 to 2015 for full‐time, private‐sector IS workers in the United States. We decompose the differential within and across years. Time trends isolate the pattern of the unexplained gender differential.
Results
None of our decompositions or projections reveal increased gender earnings differentials over the sample period. If anything, the unexplained differentials modestly decline.
Conclusion
Despite contentions that the financial treatment of women explains their departure from IS and engineering, we find no evidence of a trend toward larger earnings differentials. Thus, our data argue that the declining share of women in IS likely has its roots elsewhere.
Past studies have found that economy‐wide gender and racial wage differentials are smaller in the nonprofit sector than in the for‐profit sector. I show that the massive US hospital industry exhibits a different pattern. Gender and racial differentials in nonprofit hospitals are larger than in the for‐profit hospitals. These findings are robust to various model specifications and appear throughout the earnings distribution and in most subsamples. Critically, the findings remain even after controlling for individual fixed effects. I argue this may reflect weakened monitoring in nonprofit hospitals and contrast this with the traditional theory that nonprofits must emphasize wage equality to motivate their workers.
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