Topic 2 - Estimating the changing extent of gender discrimination Professor Christine Greenhalgh. P Cahuc and A Zylberberg (2004) Labor Economics, Chapter 5 Compensating Wage Differentials and Discrimination, part 4.
P Cahuc and A Zylberberg (2004) Labor Economics, Chapter 5 Compensating Wage Differentials and Discrimination, part 4.
A Manning (2003) Monopsony in Motion, Chapter 7: Gender Discrimination in Labor Markets.
A Manning and J Swaffield (2008), ‘The gender gap in early-career wage growth’, The Economic Journal Vol. 118 No. 530 July.
The Economic Journal (2008) Vol. 118 No. 526 February, Feature: Women’s Part-Time Work. This includes five articles examining several aspects of the topic. See especially the two articles by M Gregory and S Connolly and one by Manning and Petrongolo.
and this slide:
Data from UK LFS, as shown in H Robinson Ch 15 of The Labour Market Under New Labour, eds. Dickens, Gregg, Wadsworth 2003
Estimating wage equations (hedonic)
ln w = xβ + eα + ε
w is hourly wage
x is vector of personal characteristics
e is vector of characteristics of job
ε is random error
β vector of coefficients on personal variables
α is vector of coefficients on job variables
ln w = X β + ε
ln wM – ln wF = (XM – XF) βM + XF(βM - βF )
Second element is estimate of discrimination D
Using Blinder-Oaxaca decomposition -
Unexplained differentials 1971
Married to single men 14%
Single men to single women24%
Single women to married women3%
Unexplained differentials 1975
Married to single men 10%
Single men to single women10%
Single women to married women12%
Three broad factors:
Some women intermit or work part-time
Do men also get more training?
Do men change jobs to find right niche?
Are men more ambitious?
Work experience 6.5
Estimating the factors accounting for this gap
In rank order other characteristics are:
Rights to Flexible Working:
Employer Reviews of Equal Pay