Gender-based occupational segregation: a bit string approach

TL;DR

This paper introduces an agent-based model to simulate persistent gender-based occupational segregation driven by discriminatory preferences, providing insights into its role in the gender wage gap.

Contribution

It presents a novel framework incorporating discriminatory behavior into agent-based models to explain persistent occupational segregation.

Findings

Discriminatory preferences lead to persistent gendered occupational segregation.

The model aligns with empirical evidence of segregation despite diminishing gender differences.

Occupational segregation persists even with equal human capital variables.

Abstract

The systematic differences of gender representation across occupations, gender-based occupational segregation, has been suggested as one of the most important determinants of the still existing gender wage gap. Despite some signs of a decreasing trend, there is evidence that occupational gendered segregation is persistent even though gender differences in human capital variables have been disappearing. Using an agent-based model we provide a framework that introduces discriminatory behavior based on labour market theories of discrimination where workers and firms can exhibit gendered preferences. The introduction of discriminatory behavior transforms the otherwise random dynamics of occupational choice into a persistent gender-based occupational segregation consistent with empirical evidence.