Men and women tend to choose different types of occupations, and so a source of wage differences between men and women is differences in human capital. a source of wage differences between men and women is compensating differentials. the gap between the earnings of men and the earnings of women is likely even more significant than the data alone indicate. we should expect the earnings of women to rise relative to the earnings of men, in order to induce women to accept jobs that they have been reluctant to accept in the past.