Gender Wage Gap And Earnings: Predicted By Tenure In the Czech Republic

This paper examines the gender wage gap as well as male and female earnings as a function of within-firm tenure in the Czech Republic during 2004-2008. Using segmented regression, the wage gap and tenure were found positively correlated for approximately the first five years of within-firm employment, after which the correlation was near zero. Returns on tenure were greater for men than women, with a statistically significant breakpoint at the seven-year mark for men. These findings confirmed the outcome of other researchers who attributes the gender wage gap to the life and work cycles of women. The model of deferred compensation, in which women are more likely to select out of companies that defer compensation, may help explain the results.