How do internships influence the gender wage gap?

What is it about?

This paper examines the influence of tryouts or internships on the gap in salaries of managers. We hypothesize that after internships the gender gap in salaries is lower because companies get a first hand look at individuals before hiring them. The reason this could affect the gender wage gap is that decision makers have better information upon which to make hiring and salary decisions.

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Why is it important?

This is important because scholars, for a long time, have puzzled over how to test for bias in labor markets and organizations. This study, firstly, provides a methodology for doing this. Second, it suggests a practice by which the gender wage gap may be able to be decreased. The study uses observational data, so care should be taken to not interpret the findings as causal, but evidence on the whole suggests the promise for this approach.,