The impact of field of study on the gender wage gap: evidence from the first job offer out of college

Using a sample of recently graduated college students from South Korea, we estimate the effects of the between-majors and within-major gender wage gap. We use a recentered influence function to decompose the wage differential between majors and find that women face a higher rate of return to the field of study. In addition, women tend to select their program of study with the intention of optimizing their earnings potential relative to men. In calculating the within-major gender wage gap, we control for selectivity into a field of study extending the current methodology to a multinomial logit setting. We test our model using a sample of new graduates from South Korea. We consider six college majors. The within-major wage differential ranged from 8.2% for natural science graduates to 17% for social science graduates. After selection is accounted for, the gender wage gap becomes smaller in humanities graduates but increases in natural science and medicine graduates. Decomposing the selection correction term into explained and unexplained factors eliminates discrimination in medicine and points to reverse discrimination in natural science.