The Distribution of the Male/Female Earnings Differential, 1970-1990

We examine the male/female earnings differential between 1970 and 1990. Our objective is to provide consistent estimates which can be compared and interpreted over time, and to assess the sensitivity of our results to alternative specifications. We find that women made modest gains over the period. Standard decomposition techniques reveal that gender differences in observable characteristics do not explain much of the earnings differential. Most of the improvement in women's relative earnings has come by a decline in the 'unexplained' component. We also find that the differential varies systematically across age and education groups, and across high- and low-income women.