Average female wages in traditionally male occupations have steeply risen over the past couple of decades in Germany. This trend led to a new and substantial pay gap between women working in male-typed occupations and other women. I dissect the emergence of these wage disparities between women, using data from the German Socio-Economic Panel (1992–2015). Compositional change with respect to education is the main driver for growing inequality. Other factors are less influential but still relevant: marginal returns for several wage-related personal characteristics have grown faster in male-typed occupations. Net of individual-level heterogeneity, traditionally male occupations have also become more attractive because of rising returns to task-specific skills. Discrimination of women in typically male lines of work seems to have declined, too, which erased part of the wage penalty these women had previously experienced. In sum, I document changes in the occupational sorting behavior of women as well as shifts in occupation-level reward mechanisms that have had a profound impact on the state of inequality between working women.

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