Gender differences in expected compensation for earnings uncertainty and skewness in business and education

Using data measuring the labor market expectations of college seniors and juniors, who major in business and education, this paper examines gender differences in expected compensation for earnings uncertainty and skewness. Ordinary least squares regressions indicate gender differences in uncertainty and skewness in business. Estimates of expected beginning salaries indicate higher uncertainty and skewness coefficients for women compared to men. This could reflect a greater degree of risk aversion by women in business or their plans to engage in part-time work shortly after graduation. Later salary estimates indicate lower uncertainty and skewness coefficients for women. Student error in estimating these salaries may be the cause of these results. They may also reflect the plans of women in business to devote more time to the labor market later in their careers.