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Minority Earnings Disparity Across the Distribution

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Author Info

  • Krishna Pendakur
  • Ravi Pendakur

Abstract

We use quantile regression methods on 2001 Census of Canada data to assess disparity at four points in the conditional distribution of earnings of native-born ethnic minorities (the 20th, 50th, 80th and 90th percentiles) as well as at the mean. In doing so, we examine and assess the degree to which minorities face earnings differentials at both the top and bottom of the conditional distribution as well as at the mean, thereby testing the degree to which the mean difference is representative of differences across the distribution. We consider glass ceilings for Canadian-born ethnic minorities, and find evidence that some groups, such as Chineseorigin people, do indeed face more earnings disparity at the top of the distribution. However, other groups face different structures. South Asian-origin workers face greater disparity at the bottom than at the top, and Black workers face great disparity across the distribution. We interpret these latter patterns as identifying poor access of minority workers to good jobs in various parts of the distribution, rather than as negating a glass ceiling.

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Bibliographic Info

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

Volume (Year): 33 (2007)
Issue (Month): 1 (March)
Pages: 41-62

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Handle: RePEc:cpp:issued:v:33:y:2007:i:1:p:41-62

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Postal: University of Toronto Press Journals Division 5201 Dufferin Street Toronto, Ontario, Canada M3H 5T8
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References

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  1. Hiau Joo Kee, 2005. "Glass Ceiling or Sticky Floor? Exploring the Australian Gender Pay Gap using Quantile Regression and Counterfactual Decomposition Methods," CEPR Discussion Papers 487, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  2. Wiji Arulampalam & Alison Booth & Mark L. Bryan, 2006. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wages Distribution," CEPR Discussion Papers 510, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  3. Jaume Garcia & Pedro J. Hernández & Ángel López Nicolás, 1998. "How wide is the gap? An investigation of gender wage differences using quantile regression," Economics Working Papers 287, Department of Economics and Business, Universitat Pompeu Fabra.
  4. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
  5. Calvo-Armengol, Antoni, 2004. "Job contact networks," Journal of Economic Theory, Elsevier, vol. 115(1), pages 191-206, March.
  6. Dickens, William T & Lang, Kevin, 1985. "A Test of Dual Labor Market Theory," American Economic Review, American Economic Association, vol. 75(4), pages 792-805, September.
  7. Lazear, Edward P & Rosen, Sherwin, 1990. "Male-Female Wage Differentials in Job Ladders," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages S106-23, January.
  8. Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
  9. Rashid, Saman, 2004. "Immigrants' Income and Family Migration," UmeÃ¥ Economic Studies 625, Umeå University, Department of Economics.
  10. Juan J. Dolado & Vanesa Llorens, 2004. "Gender Wage Gaps By Education In Spain: Glass Floors Vs. Glass Ceilings," Working Papers wp2004_03, CEMFI.
  11. Krishna Pendakur & Ravi Pendakur, 1998. "The Colour of Money: Earnings Differentials Among Ethnic Groups in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(3), pages 518-548, August.
  12. Albrecht, James & Björklund, Anders & Vroman, Susan, 2001. "Is There a Glass Ceiling in Sweden?," IZA Discussion Papers 282, Institute for the Study of Labor (IZA).
  13. Moro,A. & Norman,P., 2001. "A general equilibrium model of statistical discrimination," Working papers 4, Wisconsin Madison - Social Systems.
  14. Kuhn, Peter J, 1987. "Sex Discrimination in Labor Markets: The Role of Statistical Evidenc e," American Economic Review, American Economic Association, vol. 77(4), pages 567-83, September.
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Cited by:
  1. Nong Zhu & Cecile Batisse, 2014. "L’inégalité, la pauvreté et l'intégration économique des immigrants au Canada depuis les années 1990," CIRANO Working Papers 2014s-10, CIRANO.
  2. Nong Zhu & Denise Helly, 2014. "L’inégalité, la pauvreté et l’intégration économique des immigrants au Canada," CIRANO Working Papers 2014s-15, CIRANO.
  3. Dileni Gunewardena & Darshi Abeyrathna & Amalie Ellagala & Kamani Rajakaruna & Shobana Rajendran, 2008. "Glass Ceilings, Sticky Floors or Sticky Doors? A Quantile Regression Approach to Exploring Gender Wage Gaps in Sri Lanka," Working Papers PMMA 2008-04, PEP-PMMA.
  4. Marisa Bucheli & Rafael Porzecanski, 2008. "Racial Inequality in the Uruguayan Labor Market:An analysis of wage differentials between Afrodescendants and whites," Documentos de Trabajo (working papers) 1508, Department of Economics - dECON.

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