Stay or Leave?: Externalization of Job Mobility and the Effect on the U.S. Gender Earnings Gap, 1979–2009

As jobs in the United States become less secure and traditional job ladders deteriorate, employees increasingly change employers to build their career. This article explores how this shift affects gender earnings disparities. I find that the effect of changing employers depends on whether changes occur in “good” or “bad” jobs and whether individuals leave voluntarily or involuntarily. Using the Panel Study of Income Dynamics 1979–2009, gender disparities narrowed among voluntary leavers in good jobs and involuntary leavers in bad jobs. Disparities stagnated among voluntary leavers in bad jobs. The gender gap actually increased among involuntary leavers in good jobs. Although the causal mechanisms driving these trends are still unknown, the results indicate that the externalization opens opportunities primarily to those who are already in good positions.