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Gender vs Ethnic Wage Differentials Among Professionals: Evidence from Israel

Author

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  • Shoshana Neuman
  • Ronald L. Oaxaca

Abstract

The purpose of this paper is to investigate wage structures of professional workers in the Israeli labor market using data from the 1983 Israeli census and correcting for selectivity at the state of entrance into the occupation. The sample of professionals is decomposed into several subsamples: Jewish men and Jewish women; within the Jewish sample a distinction is made between Westerners and Easterners. The core of this study is the investigation of wage differentials between the various groups, taking into account differences in entrance probabilities. The standard Oaxaca decomposition does not take into account different probabilities of entering the professional occupations (i.e., occupational segregation). In order to incorporate this type of segregation into the wage differential decompositions, two statistical methodologies are merged: the Oaxaca methodology and the Heckman selectivity bias correction procedure. The decomposition procedure is then modified in order to take into account the contribution of segregation to the characteristics and the discrimination components. We propose four alternative decompositions of the selectivity corrected wage equations and present the results based on these decompositions.

Suggested Citation

  • Shoshana Neuman & Ronald L. Oaxaca, 2003. "Gender vs Ethnic Wage Differentials Among Professionals: Evidence from Israel," Annals of Economics and Statistics, GENES, issue 71-72, pages 245-265.
    • Handle: RePEc:adr:anecst:y:2003:i:71-72:p:245-265
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    File URL: http://www.jstor.org/stable/20079055
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    Citations

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    Cited by:

    1. Navon, Guy & Tojerow, Ilan, 2006. "The Effects of Rent-Sharing on the Gender Wage Gap in the Israeli Manufacturing Sector," IZA Discussion Papers 2361, Institute of Labor Economics (IZA).
    2. Daniela Piazzalunga & Maria Laura Di Tommaso, 2019. "The increase of the gender wage gap in Italy during the 2008-2012 economic crisis," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 17(2), pages 171-193, June.
    3. Neuman, Shoshana & Oaxaca, Ronald L., 2004. "Wage Differentials in the 1990s in Israel: Endowments, Discrimination, and Selectivity," IZA Discussion Papers 1362, Institute of Labor Economics (IZA).
    4. Michael Ransom & Ronald L. Oaxaca, 2005. "Intrafirm Mobility and Sex Differences in Pay," ILR Review, Cornell University, ILR School, vol. 58(2), pages 219-237, January.
    5. Chicha, Marie-Thérèse., 2006. "Analyse comparative de la mise en oeuvre du droit à l'égalité de rémunération : modèles et impacts," ILO Working Papers 993920333402676, International Labour Organization.
    6. repec:ilo:ilowps:392033 is not listed on IDEAS
    7. repec:ilo:ilowps:399524 is not listed on IDEAS
    8. Carolina Castagnetti & Luisa Rosti & Marina Töpfer, 2020. "Discriminate me — If you can! The disappearance of the gender pay gap among public‐contest selected employees in Italy," Gender, Work and Organization, Wiley Blackwell, vol. 27(6), pages 1040-1076, November.
    9. Oaxaca, Ronald L. & Choe, Chung, 2016. "Wage Decompositions Using Panel Data Sample Selection Correction," IZA Discussion Papers 10157, Institute of Labor Economics (IZA).
    10. Chicha, Marie-Thérèse., 2006. "A comparative analysis of promoting pay equity : models and impacts," ILO Working Papers 993995243402676, International Labour Organization.
    11. Martin Huber & Anna Solovyeva, 2020. "On the Sensitivity of Wage Gap Decompositions," Journal of Labor Research, Springer, vol. 41(1), pages 1-33, June.
    12. Töpfer, Marina & Castagnetti, Carolina & Rosti, Luisa, 2016. "Discriminate me - if you can! The Disappearance of the Gender Pay Gap among Public-Contest Selected Employees," VfS Annual Conference 2016 (Augsburg): Demographic Change 145905, Verein für Socialpolitik / German Economic Association.
    13. Julie L. Hotchkiss & M. Melinda Pitts, 2007. "The Role of Labor Market Intermittency in Explaining Gender Wage Differentials," American Economic Review, American Economic Association, vol. 97(2), pages 417-421, May.

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