Tough trade-offs: How time and career choices shape the gender pay gap

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The gender pay gap is estimated to be 27 percent for both the sample and the broader US workforce, indicating significant disparities in earnings between men and women [19] - The analysis focuses on how career choices and time impact the gender pay gap, emphasizing the importance of occupational trajectories and advancements [19][52] - The study utilizes a comprehensive dataset of over 100 million individuals and job postings to analyze career pathways and wage mobility [2][4] Sample Selection - The study uses a random sample of one million men and one million women from over 60 million gender-identified profiles, focusing on US-based profiles [3][4] - The final sample consists of 35,235 women and 50,529 men, totaling 85,764 individuals, with approximately 36,000 unique job titles [4][5] - The sample skews towards higher-educated workers in higher-paying occupations, reflecting women's lower representation in these roles [9][12] Skill Distance - Skill distance is estimated by analyzing job posting data from 20.9 million aggregated job postings, focusing on the skills required for each role [10][14] - The calculation of skill distance per role move considers the weighted number of new skills compared to the total skills required for the new role [13] Wage Mobility - The report examines wage mobility over a ten-year period, categorizing occupations into quintiles based on average wages [15][16] - It tracks the movements of men and women between occupational wage quintiles, disregarding the gender pay gap within occupations for this analysis [16] Decomposition of the Gender Pay Gap - The gender pay gap is decomposed into differences in starting points, occupational trajectories, within-occupation advancements, and hours worked [19][24] - Women's non-gendered overall average wage at year ten was approximately $82,000, with an 8 percent gap due to differences in occupational trajectories [25] Historical Trajectory Patterns - The report projects labor demand by occupation through 2030, estimating the number of workers transitioning into growing and shrinking occupations [32][34] Types of Companies - The analysis identifies 12,476 unique workers from various company types, comparing human capital outcomes for men and women across these categories [35][37] - The study categorizes companies into four types based on their performance in human capital development and financial results [47]