RETURNS TO SKILL, COMPENSATING DIFFERENTIALS, AND GENDER BIAS - EFFECTS OF OCCUPATIONAL CHARACTERISTICS ON THE WAGES OF WHITE WOMEN AND MEN

A regression model with fixed-effects and national individual-level pa nel data (1966-81) is used to decompose the sex gap in pay. In accorda nce with neoclassical predictions from human capital theory, net posit ive returns to individuals' education and experience and to occupation s' cognitive and physical skills are found. While sex differences in e xperience have large effects on the sex gap skin contributes little to the gap. In accordance with cultural feminist predictions, negative r eturns to being in an occupation with a higher percentage of females o r requiring more nurturant social skill are found. These forms of gend ered valuation contribute significantly to the sex gap in pay. In cont rast to the neoclassical prediction of compensating differentials, the analysis did not find consistently positive effects for onerous physi cal conditions, nor did these have much effect on the gap.