Sociability Capital and the Gender Wage Gap

Our model shows that gender wage gap occurs when working women divert time away from sociability capital accumulation to meet family responsibilities.

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Abstract

This paper develops a job-signaling model to study the gender wage gap for occupations in which both cognitive and non-cognitive skills are productive. Workers acquire both education and sociability capital to signal their skills. A significant gender wage gap occurs in professions in which sociability capital is an important contributor to productivity if women divert time away from accumulating such capital in order to meet family responsibilities.

Publication
Western Economic Association Annual Conference 2014 Meetings, Denver, CO, USA

Presented at

  • Illinois Economic Association, Chicago, IL [October 2014].
  • Western Economic Association, Denver, CO [June 2014].
  • Northern Illinois University ECONference, Dekalb, IL [April 2014].
  • Southern Economic Association, Tampa, FL [November 2013].
  • Northern Illinois University Department of Economics, Dekalb, IL [November 2013].

Highlights:

  • The paper proposes a new component that explains the residual gender wage gap.
  • Women have greater time demands for home production than men.
  • This leads to gender differences in sociability capital.
  • Gender dispersion in sociability capital causes a gender wage gap in some jobs.

JEL codes: J16 . J31 . D82 . D85

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Herman Sahni
Assistant Professor of Finance

My research interests include labor economics, health economics, and corporate finance.