Work

Within-firm job description wage gaps: The implications for financial performance

Year: 2025

Type: article

Abstract: I study within-firm and job-type wage gaps arising from words in job descriptions using a natural language processing technique (word2vec) on proprietary U.S. job-level wage data from publicly traded companies spanning two decades. Analyzing nearly half a million job descriptions, I find that stereotypically feminine descriptions correspond to lower wages compared to masculine ones, as they require fewer years of experience and less education. At the firm level, wider job description wage gaps---where masculine descriptions earn more---are associated with higher firm value. A difference-in-differences design around Executive Order 13672 supports a plausibly causal interpretation, and the effect is strongest in politically sensitive firms. The wage premium for masculine descriptions is linked to a higher share of skilled jobs, greater productivity, and increased investment.

Source: Australian Journal of Management

DOI: 10.1177/03128962251372865

Author: Spencer Barnes

Institution: The University of Texas at El Paso

Language: English

Topic: Labor market dynamics and wage inequality

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Decent work and economic growth, Reduced inequalities, Gender equality

Open Access status: hybrid

Estimated APC paid: $3,900