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Wage Determination by Gender and Visible Minority Status: Evidence from the 1989 LMAS

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  • Louis N. Christofides
  • Robert Swidinsky

Abstract

The 1989 Labour Market Activity Survey (LMAS) is used to examine the wage implications of membership in groups distinguished by gender and visible minority status. White men, minority men, white women and minority women earn an average hourly wage of $14.73, $12.48, $11.33 and $10.97, respectively. We examine whether these rates and their pair-wise differences can be explained by productivity-related characteristics, and conclude that less then 30 percent of the offered wage differentials between white males-minority females, white males-white females and white males-minority males can be attributed to productivity-related factors. We also conclude that virtually none of the differentials between minority males-white females and white females-minority females can be explained by productivity factors. Approximately 11 percent of the wage differential between minority males and minority females is due to differences in productivity characteristics.

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Bibliographic Info

Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 20 (1994)
Issue (Month): 1 (March)
Pages: 34-51

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Handle: RePEc:cpp:issued:v:20:y:1994:i:1:p:34-51

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  1. Charles M. Beach & Christopher Worswick, 1993. "Is There a Double-Negative Effect on the Earnings of Immigrant Women?," Canadian Public Policy, University of Toronto Press, vol. 19(1), pages 36-53, March.
  2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
  3. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
  4. Francine D. Blau & Lawrence M. Kahn, 1992. "Race and Gender Pay Differentials," NBER Working Papers 4120, National Bureau of Economic Research, Inc.
  5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
  6. Gronau, Reuben, 1974. "Wage Comparisons-A Selectivity Bias," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1119-43, Nov.-Dec..
  7. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
  8. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
  9. Peter George & Peter Kuhn, 1994. "The Size and Structure of Native-White Wage Differentials in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 20-42, February.
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Cited by:
  1. Joanne D. Leck, 2002. "Making Employment Equity Programs Work for Women," Canadian Public Policy, University of Toronto Press, vol. 28(s1), pages 85-100, May.
  2. Wannell, Ted & Finnie, Ross, 2004. "L'evolution de l'ecart des gains entre les sexes chez les diplomes des universites canadiennes," Direction des etudes analytiques : documents de recherche 2004235f, Statistics Canada, Direction des etudes analytiques.
  3. Wannell, Ted & Finnie, Ross, 2004. "The Evolution of the Gender Earnings Gap Amongst Canadian University Graduates," Analytical Studies Branch Research Paper Series 2004235e, Statistics Canada, Analytical Studies Branch.
  4. Coulombe, Simon & Frenette, Marc, 2007. "Has Higher Education Among Young Women Substantially Reduced the Gender Gap in Employment and Earnings?," Analytical Studies Branch Research Paper Series 2007301e, Statistics Canada, Analytical Studies Branch.
  5. Ross Finnie & Ted Wannell, 2004. "Evolution of the gender earnings gap among Canadian university graduates," Applied Economics, Taylor & Francis Journals, vol. 36(17), pages 1967-1978.
  6. Marcia M. A. Schafgans & Morton Stelcnery, 2006. "Selectivity and the gender wage gap decomposition in the presence of a joint decision process," LSE Research Online Documents on Economics 6809, London School of Economics and Political Science, LSE Library.

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