Journal of Real Estate Finance and Economics, 21:3, 315±323, 2000
# 2000 Kluwer Academic Publishers. Manufactured in The Netherlands.
A Note on the Earnings of Real Estate Salespersons
and others in the Financial Services Industry
THOMAS M. CARROLL
Department of Economics, University of Nevada, Las Vegas, NV
TERRENCE M. CLAURETIE
Department of Finance, University of Nevada, Las Vegas, NV, 702-895-3223
The earnings of females in various sales professions are less than their male counterparts. By expanding on the set
of variables used by Jud and Winkler we were able to explain a large portion of this differential for most
professions. Child rearing and marriage explain much of the differential in income in business sales outside of real
estate. These variables fail to explain the remaining large gap in real estate sales, however.
Key Words: earning, real estate sales, demographics, females
In a recent article in this Journal, G. Donald Jud and Daniel T. Winkler (JW) report on the
earnings of real estate salespersons and others in the ®nancial services industry. They note
that prior research in the area of real estate sales found positive returns to education
(except graduate school) and experience, and negative returns to female salespersons.
While most of the prior work relied on samples from surveys administered by the
researches JW utilize data from the 1990 U.S. Census. Such data are not only rich in terms
of earnings of individuals in various occupational categories but also in terms of socio-
economic data such as education age, gender race, and so forth. The raw descriptive data
revealed that full-time real estate salespersons that were female earned $32,158 while their
male counterparts earned an average of $48,629. That is, without taking into account such
factors as education and experience, females working full time in real estate sales made
sixty-six percent of the amount earned by males. The results were similar for part-time
salespersons. Real estate sales persons made less than securities and insurance
salespersons. There may be some fundamental differences between these occupations.
When JW run regressions and include variables such as education, experience, and part-
time/full-time status they ®nd that, ceteris paribus, females in real estate sales earn 47.46
percent less than their male counterparts. Their estimate of the gender-based difference in
Address correspondence to: Terrence M. Clauretie, University of Nevada, Department of Finance, 4505
Maryland, Box 456008, Las Vegas, NV, 89154-6008.