TITLE:
An Analysis of Variation in Human Capital Investment and Sectoral Wage Differentials for Women
AUTHORS:
Hang Anh Nguyen
KEYWORDS:
Econometrics, Human Capital, Education, Wage Difference, Women
JOURNAL NAME:
Open Journal of Business and Management,
Vol.8 No.4,
June
24,
2020
ABSTRACT: This research discusses the variation in human capital investment of
women that led to the wage differentials between industrial sectors in the
United States from 1980 to 2016. Using the Current Population Survey data, this
research found that working in the manufacturing sector offered female workers
with higher wages. However, return to education in monetary term was higher in
the service sector than in the manufacturing sector. Male faced the same
situation in the labor market yet at different rates. In addition, regression
results showed that education had the highest impact on women’s wage and return
to education was higher for women than for men. These findings correspond with
previous literature and suggest that education increased the earning capacity
for women, especially for those who worked in the service-producing sector.