Can labour market segment explain male/female income differences at the start of the employment career?

This study links the fact that men and women are unequally represented on the internal and external segment of the labour market, to the finding that on the internal segment of the labour market wages are higher than on the external segment. Taken together, this presents a possible explanation for gender differences in income. This reasoning was tested using panel data from 435 employed young adults aged 18–26 years old at the start of the study. The expected effects were found, but gender continued to have important effects on income at both occasions. Therefore, labour market position cannot sufficiently explain income differences between men and women at the start of their employment career.