Stay or Leave? Externalization of the labor market and its effect on gender earnings inequality in the U.S. Public

Abstract

Abstract

Stay or Leave? Externalization of the labor market and its effect on gender earnings inequality in the U.S.

By
Anne-Kathrin Kronberg

As jobs in the U.S. became less secure and traditional job ladders deteriorated,
employees increasingly turned to the "external" labor market to build their career. This
thesis explores the relationship between the increasing importance of the external labor
market and the gender earnings gap.
Using the 1979-2001 waves of the Panel Study of Income Dynamics (PSID), I find
that over time, switching employers affects men and women differently depending on
whether individuals leave the previous employer voluntarily or involuntarily and whether
changes occur in the primary or secondary labor market. Since 1979, gender earnings
disparities have increased among individuals changing employers involuntarily. Even
when voluntarily changing employers, women increasingly fall behind men. This effect
however, is specific to voluntary changers in the secondary labor market. That is, gender
disparities are actually dramatically narrowing among those who voluntarily leave their
previous employer in the primary labor market.
While the causal mechanisms driving these trends are still unknown, the results speak
to the fact the externalization of the labor market opened opportunities primarily to those
who are already in good positions. Most importantly, this study advances our
understanding of the gender earnings gap.

Stay or Leave?
Externalization of the labor market
and its effect on gender earnings inequality in the U.S.

By
Anne-Kathrin Kronberg
B.A., Universität Mannheim, Germany, 2007
Advisor: Irene Browne, Ph.D.
A thesis submitted to the Faculty of the
James T. Laney School of Graduate Studies of Emory University
in partial fulfillment of the requirements for the degree of
Master of Arts
in Sociology
2010

Table of Contents

Table of Contents

1. Historical change in the labor market

2. Leaving the employer voluntarily or involuntarily

3. The effect on gender earnings inequality - Theory and hypotheses

3.1. Decrease of gender earnings inequality

3.2. Increase of gender earnings inequality

4. Data, measures and analytic strategy

4.1. Data 4.2. Measures

4.3. Analytic strategy

5. Results

5.1. Descriptive analysis

5.2. Income differences by sex and labor market position

5.3. Differences in the effect of changing employer for men and women

6. Discussion 7. Conclusion

About this Master's Thesis

Rights statement

• Permission granted by the author to include this thesis or dissertation in this repository. All rights reserved by the author. Please contact the author for information regarding the reproduction and use of this thesis or dissertation.

School	Laney Graduate School
Department	Sociology
Degree	MA
Submission	Master's Thesis
Language	English
Research Field	Sociology, Industrial and Labor Relations Sociology, General
Mot-clé	inequality women labor market work
Committee Chair / Thesis Advisor	Browne, Irene, Emory University
Committee Members	Kalleberg, Arne, University of North Carolina, Chapel Hill Belliveau, Maura, Emory University

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