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Generalized Glass Ceilings in the United States – A Stochastic Metafrontier Approach

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Abstract

This paper highlights the limitations inherent to the stochastic earnings frontier methodology to analyzing wage discrimination and introduces the use of the metafrontier approach as an important improvement. Using US data from the Current Population Survey, we find that white women’s and black men’s maximum attainable hourly earnings represent respectively 80% and 76% of those of white men on average. Furthermore, the metafrontier approach shows that male-female and white-black differences in maximum attainable earnings are observed at all levels of human capital. This innovative methodology permits the identification of a “generalized” glass ceilings against females and blacks in the US.

Suggested Citation

  • Khalid Maman Waziri, 2017. "Generalized Glass Ceilings in the United States – A Stochastic Metafrontier Approach," AMSE Working Papers 1727, Aix-Marseille School of Economics, France.
    • Handle: RePEc:aim:wpaimx:1727
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    File URL: https://www.amse-aixmarseille.fr/sites/default/files/_dt/2012/wp_2017_-_nr_27_1.pdf
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    Cited by:

    1. Khalid Maman Waziri, 2017. "Generalized Glass Ceilings in the United States – A Stochastic Metafrontier Approach," Working Papers halshs-01569834, HAL.

    More about this item

    Keywords

    wage differentials; discrimination; glass ceiling; stochastic frontier; stochastic metafrontier approach; sample selection correction;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General

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