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Does More Mean Less? The Male/Female Wage Gap and the Proportion of Females at the Establishment Level

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Author Info
Kevin Reilly
Tony Wirjanto

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Abstract

We examine the theoretical, empirical, and public policy implications of the proportion of females in the establishment. Arrow's model of heterogeneous employer discrimination provides predictions that are tested. Empirical results indicate support for the theory using establishment data, but a contradiction is obtained with the individual data. It is estimated that the proportion of females in the establishment accounts for 26 per cent of the gender log wage gap. Implications for employment equity are considered in the context of a new method of decomposing the log wage gap and indicate that such public policy can reduce this gap by 20 per cent.

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File URL: http://economics.ca/cgi/xms?jab=v32n4/03.pdf
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Publisher Info
Article provided by Canadian Economics Association in its journal Canadian Journal of Economics.

Volume (Year): 32 (1999)
Issue (Month): 4 (August)
Pages: 906-929
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Handle: RePEc:cje:issued:v:32:y:1999:i:4:p:906-929

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Postal: Canadian Economics Association Prof. Steven Ambler, Secretary-Treasurer c/o Olivier Lebert, CEA/CJE/CPP Office CIREQ-C.R.D.E., Université de Montréal C.P. 6128, succursale Centre-ville Montréal, Québec, H3C 3J7, Canada
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Find related papers by JEL classification:
J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

Cited by:
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  1. Finnie, Ross & Wannell, Ted, 2004. "L'évolution de l'écart des gains entre les sexes chez les diplômés des universités canadiennes," Direction des études analytiques : documents de recherche 2004235f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  2. Ross Finnie & Ted Wannell, 2004. "Evolution of the gender earnings gap among Canadian university graduates," Applied Economics, Taylor and Francis Journals, vol. 36(17), pages 1967-1978, September. [Downloadable!] (restricted)
  3. Nekby, Lena, 2002. "Gender Differences in Rent Sharing and its Implications for the Gender Wage Gap," Working Paper Series 182, Trade Union Institute for Economic Research. [Downloadable!]
  4. Osberg, Lars, 1995. "The Missing Link - Data on the Demand Side of Labour Markets," Analytical Studies Branch Research Paper Series 1995077e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  5. Kenneth R Troske & William J Carrington, 1996. "Sex Segregation in U.S. Manufacturing," Working Papers 96-4, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  6. Osberg, Lars, 1995. "Le chaînon manquant : données sur l'élément demande des marchés du travail," Direction des études analytiques : documents de recherche 1995077f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  7. Michael Baker & Nicole M. Fortin, 2000. "Occupational Gender Composition and Wages in Canada: 1987-1988," CIRANO Working Papers 2000s-48, CIRANO. [Downloadable!]
    Other versions:
  8. Marie Drolet, 2002. "Can the Workplace Explain Canadian Gender Pay Differentials?," Canadian Public Policy, University of Toronto Press, vol. 28(s1), pages 41-63, May. [Downloadable!] (restricted)
  9. Michael Baker & Nicole M. Fortin, 1998. "Gender Composition and Wages: Why Is Canada Different from the United States?," CIRANO Working Papers 98s-34, CIRANO. [Downloadable!]
    Other versions:
  10. Heinze, Anja & Wolf, Elke, 2006. "Gender Earnings Gap in German Firms: The Impact of Firm Characteristics and Institutions," ZEW Discussion Papers 06-20, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  11. Juan Ignacio Palacio & Hipólito J. Simón, . "Segregación laboral y diferencias salariales por sexo en España," Studies on the Spanish Economy 151, FEDEA. [Downloadable!]
  12. Michael Baker & Nicole Fortin, 2000. "Comparable Worth Comes to the Private Sector: The Case of Ontario," Econometric Society World Congress 2000 Contributed Papers 0266, Econometric Society. [Downloadable!]
  13. Nicole M. Fortin & Michael Huberman, 2002. "Occupational Gender Segregation and Women's Wages in Canada: An Historical Perspective," Canadian Public Policy, University of Toronto Press, vol. 28(s1), pages 11-39, May. [Downloadable!] (restricted)
    Other versions:
  14. Jeffrey Mills & Sourushe Zandvakili, 2004. "Analysis of gender-based family income inequality in Canada," Applied Economics Letters, Taylor and Francis Journals, vol. 11(8), pages 469-472, June. [Downloadable!] (restricted)
  15. Kevin T. Reilly & Tony S. Wirjanto, 1999. "The Proportion of Females in the Establishment: Discrimination, Preferences and Technology," Canadian Public Policy, University of Toronto Press, vol. 25(s1), pages 73-94, November. [Downloadable!] (restricted)
    Other versions:
  16. Finnie, Ross & Wannell, Ted, 2004. "The Evolution of the Gender Earnings Gap Amongst Canadian University Graduates," Analytical Studies Branch Research Paper Series 2004235e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  17. Gubta, Nabanita Datta & Rothstein, Donna S., 2001. "The Impact of Worker and Establishment-level Characteristics on Male-Female Wage Differentials: Evidence from Danish Matched Employee-Employer Data," CLS Working Papers 01-9, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research. [Downloadable!]
  18. Baker, Michael & Fortin, Nicole, 2000. "The Gender Composition and Wages: Why is Canada Different from the United States?," Analytical Studies Branch Research Paper Series 2000140e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  19. Cabral Vieira, José A. & Cardoso, Ana Rute & Portela, Miguel, 2003. "Recruitment and Pay at the Establishment Level: Gender Segregation and the Wage Gap in Portugal," IZA Discussion Papers 789, Institute for the Study of Labor (IZA). [Downloadable!]
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