The dynamics of the early career gender wage gap among university graduates: The case of Russia

Abstract

This study provides new evidence of the gender wage gap among recent university graduates at different stages of their early career. Using a unique administrative dataset from Russia, we estimate the gender wage gap at means and across wage distribution for a cohort of 2018 university graduates during the first 4 years after graduation. We explore the contribution of educational and job factors to the explanation of the gap. Although a substantial gap of 14% is already present at labour market entry, it is two times smaller compared to the gap for the overall working population. Eighty five percent of the entry wage gap can be explained with differences in fields of study, work experience, and job characteristics. More than 4 years after graduation, the gender wage gap experiences a dramatic increase, reaching 26%. Only 28% of the resulting gap can be explained by the observed characteristics, including industrial and occupational segregation. The size of the gap varies drastically in different parts of the wage distribution, suggesting the existence of a strong glass ceiling effect from the very beginning of graduate careers. The rapidly expanding early career gender wage gap with a growing unexplained component suggests that education policies may have limited ability to promote gender equality in the labour market.