Age, Gender, and Compensation: A Study of Hollywood Movie Stars
Published online on January 28, 2014
Abstract
Research on the gender-wage gap shows equivocal evidence regarding its magnitude, which likely stems from the different wage-related variables researchers include in their calculations. To examine whether pay differentials solely based on gender exist, we focused on the earnings of top performing professionals within a specific occupation to rule out productivity-related explanations for the gender-wage gap. Specifically, we investigated the interaction of gender and age on the earnings of Hollywood top movie stars. The results reveal that the average earnings per film of female movie stars increase until the age of 34 but decrease rapidly thereafter. Male movie stars’ average earnings per film reach the maximum at age 51 and remain stable after that.