Department of Economics

Working Paper #2013-04 – Why Does the Gender Earnings Gap Vary Across U.S. States? Fixed Effect Models of Male and Female Earnings

Department of Economics
University of Delaware
Working Paper #2013-04

Why Does the Gender Earnings Gap Vary Across U.S. States?

Fixed Effect Models of Male and Female earnings

 

Saul D. Hoffman

ABSTRACT

A recent Census Bureau report shows that the gender earnings ratio for year-round full-time workers varies substantially across states, with a range of 24 percentage points.  In this paper, I examine this variation by estimating state-fixed effect models of earnings for men and women, using data from the 2008 and 2009 CPS.  I find that state fixed effects affecting men’s and women’s earnings are persistent, even after control for other variables.  Louisiana has the lowest unadjusted and regression-adjusted gender earnings ratio, while DC and Maine have the highest unadjusted and adjusted earnings ratios, respectively.  States with particularly low overall gender earnings ratios have low ratios even within detailed education and occupation categories.

JEL Codes: J16, J30, J31, J70, J71

 

Keywords:  Gender Gap, Women’s Earnings, Fixed Effects

The Lerner College is home to a state-of-the-art financial trading facility, the $1.5 million student-led Blue Hen Investment Club, a student-managed restaurant and hotel, a high-technology development center of a global bank and a start-up experience for students with new business ideas.

Lerner College faculty - like Meryl Gardner, whose research on foods and moods was recently published in the Journal of Consumer Psychology - are thought leaders who command attention from influential business audiences, economists and policy makers.

All Lerner College departments offer discovery learning experiences and emphasize data-based analytics to enrich the student experience. Here, students at Vita Nova, our award-winning restaurant run through HRIM, joined professional chefs and winemakers in hosting a 2014 Mid-Atlantic Wine and Food Festival event.

The Institute for Financial Services Analytics is a collaboration between the Lerner College, UD's College of Engineering and JPMorgan Chase, and hosts events for academics and the business community designed to address consumer analytics and industry applications.

Undergraduate scholarships, made possible through the generosity of alumni and friends, enable us to support promising scholars. Here, Delaware Gov. Jack Markell and his mother, Leni Markell, join recipients of the William Markell Scholarship (center), which benefits students in Accounting and MIS.

  • Alfred Lerner College of Business & Economics
    303 Alfred Lerner Hall  •  Newark, DE 19716  •  USA  •  ©