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Wages, non-wage characteristics, and predominantly male jobs

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  • Usui, Emiko

Abstract

This paper estimates the wage premium associated with working in predominantly male jobs. It also examines whether this wage premium is greater than the compensation workers demand for the less desirable non-wage characteristics of such jobs. The coefficients of the change in the proportion of men in an occupation on the change in wages for quits and layoffs provide opposing biased estimates of the wage premium; because workers who voluntarily quit move to better matches, but those that are laid off accept jobs from the representative distribution of job offers. Specifically, when the premium paid over- (under-)compensates for undesirable work characteristics, the quit estimate is a downward (upward) biased estimate of the wage premium, while the layoff estimate is biased upward (downward). Results from the U.S. National Longitudinal Survey of Youth (NLSY) and the U.S. Panel Study of Income Dynamics (PSID) indicate that: (1) the estimated bounds of the wage premium are large; and (2) the wage premium overcompensates for the non-wage characteristics of male jobs.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 16 (2009)
Issue (Month): 1 (January)
Pages: 52-63

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Handle: RePEc:eee:labeco:v:16:y:2009:i:1:p:52-63

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Web page: http://www.elsevier.com/locate/labeco

Related research

Keywords: Sex segregation Compensating differentials Earnings Quits and layoffs Job match-specific error component;

References

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  1. Gibbons, Robert & Katz, Lawrence F, 1991. "Layoffs and Lemons," Journal of Labor Economics, University of Chicago Press, vol. 9(4), pages 351-80, October.
  2. Stéphane Bonhomme & Grégory Jolivet, 2005. "The Pervasive Absence of Compensating Differentials," Working Papers 2005-28, Centre de Recherche en Economie et Statistique.
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  12. Solon, Gary, 1988. "Self-selection bias in longitudinal estimation of wage gaps," Economics Letters, Elsevier, vol. 28(3), pages 285-290.
  13. Macpherson, David A & Hirsch, Barry T, 1995. "Wages and Gender Composition: Why Do Women's Jobs Pay Less?," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 426-71, July.
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  15. Usui, Emiko, 2008. "Job satisfaction and the gender composition of jobs," Economics Letters, Elsevier, vol. 99(1), pages 23-26, April.
  16. Brown, Charles, 1980. "Equalizing Differences in the Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 94(1), pages 113-34, February.
  17. Francine D. Blau & Andrea H. Beller, 1988. "Trends in earnings differentials by gender, 1971û1981," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 41(4), pages 513-529, July.
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  19. Ernesto Villanueva, 2007. "Estimating Compensating Wage Differentials Using Voluntary Job Changes: Evidence from Germany," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 60(4), pages 544-561, July.
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  21. Usui, Emiko, 2012. "Gender Occupational Segregation in an Equilibrium Search Model," CIS Discussion paper series 560, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
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Citations

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Cited by:
  1. Ernesto Villanueva, 2004. "Compensating wage differentials and voluntary job changes: Evidence from West Germany," Economics Working Papers 738, Department of Economics and Business, Universitat Pompeu Fabra.
  2. Boris Hirsch & Thorsten Schank & Claus Schnabel, 2008. "Differences in Labor Supply to Monopsonistic Firms and the Gender Pay Gap: An Empirical Analysis Using Linked Employer-Employee Data from Germany," Working Papers 1111, Princeton University, Department of Economics, Industrial Relations Section..
  3. Joseph G. Altonji & Emiko Usui, 2005. "Work Hours, Wages, and Vacation Leave," NBER Working Papers 11693, National Bureau of Economic Research, Inc.
  4. Usui, Emiko, 2012. "Gender Occupational Segregation in an Equilibrium Search Model," CIS Discussion paper series 560, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.

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