Expected Work Experience: A New Human Capital Measure
The data show that conventional proxies underestimate the contribution of gender differences in work experience in explaining the gender wage gap. Work experience is a key component of human capital, but data on actual work experience are rare. Potential experience, the most common proxy for actual experience, ignores labor market intermittency because of childbirth and child-rearing—a critical omission when analyzing the gender wage gap.
- Literature Review
- Calculation of Expected Work Experience
- Application: Expected Work Experience in the Philippines
- Appendix: Wage Decomposition Data and Variable Definitions