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The age / earnings profiles for women start lower, on average, than those of their male...

The age / earnings profiles for women start lower, on average, than those of their male counterparts, and the difference grows with age. Use our theory of investment in human capital to discuss some reasons for this.

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The age / earnings profile for women start lower, on an average, than those of their mal counterparts and difference grows with age because it has been observed that employee dropout ratio for women is more as compared to men. Also, women prefer to take less number of transfers as compared to men and they sometimes are out of the labor force after marriage or after having a child. Thus, companies prefer to spend less on investment in human capital on women as compared to men.

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