Gender Differences in Careers

Sami Napari, Antti Kauhanen
The Research Institution of the Finnish Economy, Finland

Using a large linked employer-employee dataset on white-collar workers from the Finnish manufacturing over the period 1981-2006, this paper examines gender differences in careers. Our focus is on three main issues. First, we investigate whether men and women start their careers from different hierarchical positions. Second, we analyse gender differences in promotion rates. Third, we examine gender gap in starting wages and wage premiums to changes in hierarchical position. The results show that men start their careers from higher ranks of the hierarchy than women. We also find that men are promoted more likely than women amplifying the gender differences in hierarchical positions already apparent in the labour market entry. Concerning wages, men earn higher starting wages than women whereas gender differences in the wage gains attached to changes in hierarchical position are less clear-cut. Men receive higher returns to promotion with employer changes whereas women benefit more from internal promotion.

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