Page 40 - Contributed Paper Session (CPS) - Volume 3

CPS1941 Jang S.
Figure 1: Salary evolution by gender, modelized by Nagin's model

Figure 2 shows the three group solution for the 20 first year of Luxembourg
employees calibrated with our model. We see a somewhat different and more
realistic pattern emerging. For the high salary group the income of men and
women remain more or less parallel, except for a short time interval around
year five. This is however no longer the case for the middle and low salary
groups. Here, we observe that the women in these groups have higher salaries
then the men at the beginning of their career, but this is reversed somewhere
in the middle and after 10 years for the middle salary group and 15 years for
the low salary group the income of the men becomes higher than the one of
the women.

Figure 2: Salary evolution by gender, modelized by our model

We obtained these results by calibrating the model
= ( + + ) + ( + + ) + ( + + ) (5)

2
2
1
2
2

0
1
0
0
1
where denotes the salary, the gender and is Luxembourg’s GDP

in year − 1 of the study. For figure 2, we replaced the variable by the

actual values of Luxembourg’s GDP in the considered years. Table 1 shows the
values of the parameters for a 3-group solution of model 8.

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