Research in Business and Economics Journal Decomposition of the Change Page 1 Decomposition of the Change in the Gender Wage Gap

This paper investigates the determinants and characteristics of changes in the gender wage gap between 1989 and 2005 in the U.S. The gender wage gap narrowed significantly during the period studied, from 74.0 percent of men's earnings to 80.4 percent. The results of decomposition show that women narrowed the gender wage gap through increases in experience, work hours and education. Diminishing the level of gender discrimination in the labor market also has been an important factor of narrowing the gender wage gap. Although the gender wage gap has narrowed, there remains a significant differential between female and male wages