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Male-Female Wage and Productivity Differentials: A Structural Approach Using Japanese Firm-Level Panel Data

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  • Daiji Kawaguchi

Abstract

In an attempt to explain male-female wage differential, I estimated the relative marginal productivity and relative wage of female workers compared to those of male workers using panel data of Japanese firms. The relative wage of female workers is also estimated from the same data. Cross-sectional estimates that neglect firm-level, fixed effects indicate that the marginal productivity of female workers is 44 percent of that of male workers, while female wage is 31 percent of that of male workers. These estimates indicate that part of the wage differential cannot be explained by the productivity differential. However, the IV estimates that allow for firm-level, fixed effects indicate that both female marginal productivity and wage are about 50 percent of those of male workers. Thus we cannot reject the null hypothesis of no discrimination against female workers once the selection of workers into productive and high paying firms is accounted for. Evidence found in this study is consistent with the existence of employer sex discrimination at the point of job entry, but not afterward.

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Bibliographic Info

Paper provided by Econometric Society in its series Econometric Society 2004 Australasian Meetings with number 303.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:ausm04:303

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Keywords: Sex Discrimination; Wage; Productivity; Panel Data;

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  1. Judith K. Hellerstein & David Neumark, 2004. "Production Function and Wage Equation Estimation with Heterogeneous Labor: Evidence from a New Matched Employer-Employee Data Set," NBER Working Papers 10325, National Bureau of Economic Research, Inc.
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  18. repec:rus:hseeco:9982 is not listed on IDEAS
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Cited by:
  1. Rickne, Johanna, 2010. "Gender, Wages and Social Security in China’s Industrial Sector," Working Paper Series, Center for Labor Studies 2010:6, Uppsala University, Department of Economics.

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