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Does More Mean Less? The Male/Female Wage Gap and the Proportion of Female at the Establishment Level

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Author Info
Reilly, K.T.
Wirjanto, T.S.

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Abstract

This paper examines the effect of the proportionof females in the establishment on the male/female wage gap and the effectiveness of an affirmaive action program in reducing this gap. A unique data set makes this paper possible since it has information on both individuals and the establishments they work for. The paper documents a significant difference in the sex composition of the establishments in which males and females work. Further, it is shown that the proportion of females in the establishment is negatively related to the wages of both males and females and accounts for 26 percent of the gap in log wages between men and women. Due to an inadequacy of the traditional method of decomposing wages when examining an affirmative action program, a new method of decomposition is developed: the characteristic wage decomposition. The results suggest that an employment equity program will reduce the male/female log wage gap by 20 percent.

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Publisher Info
Paper provided by Centre for Labour Market and Social Research, Danmark- in its series Papers with number 98-04.

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Length: 29 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:clmsre:98-04

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Postal: Danmark; Centre for Labour Market and Social Research. Science Park Aarhus Wieds Vej 10C, 8000 Aarhus C, Danmark
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Related research
Keywords: WAGES ; WOMEN;

Other versions of this item:

Find related papers by JEL classification:
J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
J78 - Labor and Demographic Economics - - Labor Discrimination - - - Public Policy (including comparable worth)

Cited by:
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  1. Osberg, Lars, 1995. "Le chaînon manquant : données sur l'élément demande des marchés du travail," Direction des études analytiques : documents de recherche 1995077f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  2. Heinze, Anja & Wolf, Elke, 2006. "Gender Earnings Gap in German Firms: The Impact of Firm Characteristics and Institutions," ZEW Discussion Papers 06-20, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  3. Michael Baker & Nicole Fortin, 2000. "Comparable Worth Comes to the Private Sector: The Case of Ontario," Econometric Society World Congress 2000 Contributed Papers 0266, Econometric Society. [Downloadable!]
  4. Nicole M. Fortin & Michael Huberman, 2002. "Occupational Gender Segregation and Women's Wages in Canada: An Historical Perspective," Canadian Public Policy, University of Toronto Press, vol. 28(s1), pages 11-39, May. [Downloadable!] (restricted)
    Other versions:
  5. Baker, Michael & Fortin, Nicole, 2000. "The Gender Composition and Wages: Why is Canada Different from the United States?," Analytical Studies Branch Research Paper Series 2000140e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  6. Nekby, Lena, 2002. "Gender Differences in Rent Sharing and its Implications for the Gender Wage Gap," Working Paper Series 182, Trade Union Institute for Economic Research. [Downloadable!]
  7. Marie Drolet, 2002. "Can the Workplace Explain Canadian Gender Pay Differentials?," Canadian Public Policy, University of Toronto Press, vol. 28(s1), pages 41-63, May. [Downloadable!] (restricted)
  8. José Vieira & Ana Cardoso & Miguel Portela, 2005. "Gender segregation and the wage gap in Portugal: an analysis at the establishment level," Journal of Economic Inequality, Springer, vol. 3(2), pages 145-168, August. [Downloadable!] (restricted)
  9. Juan Ignacio Palacio & Hipólito J. Simón, . "Segregación laboral y diferencias salariales por sexo en España," Studies on the Spanish Economy 151, FEDEA. [Downloadable!]
  10. Jeffrey Mills & Sourushe Zandvakili, 2004. "Analysis of gender-based family income inequality in Canada," Applied Economics Letters, Taylor and Francis Journals, vol. 11(8), pages 469-472, June. [Downloadable!] (restricted)
  11. Finnie, Ross & Wannell, Ted, 2004. "The Evolution of the Gender Earnings Gap Amongst Canadian University Graduates," Analytical Studies Branch Research Paper Series 2004235e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  12. Gubta, Nabanita Datta & Rothstein, Donna S., 2001. "The Impact of Worker and Establishment-level Characteristics on Male-Female Wage Differentials: Evidence from Danish Matched Employee-Employer Data," CLS Working Papers 01-9, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research. [Downloadable!]
    Other versions:
  13. Ross Finnie & Ted Wannell, 2004. "Evolution of the gender earnings gap among Canadian university graduates," Applied Economics, Taylor and Francis Journals, vol. 36(17), pages 1967-1978, September. [Downloadable!] (restricted)
  14. Osberg, Lars, 1995. "The Missing Link - Data on the Demand Side of Labour Markets," Analytical Studies Branch Research Paper Series 1995077e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  15. Michael Baker & Nicole M. Fortin, 1998. "Gender Composition and Wages: Why is Canada different from the United States?," Working Papers baker-98-02, University of Toronto, Department of Economics. [Downloadable!]
    Other versions:
  16. Cabral Vieira, José A. & Cardoso, Ana Rute & Portela, Miguel, 2003. "Recruitment and Pay at the Establishment Level: Gender Segregation and the Wage Gap in Portugal," IZA Discussion Papers 789, Institute for the Study of Labor (IZA). [Downloadable!]
  17. Finnie, Ross & Wannell, Ted, 2004. "L'évolution de l'écart des gains entre les sexes chez les diplômés des universités canadiennes," Direction des études analytiques : documents de recherche 2004235f, Statistics Canada, Direction des études analytiques. [Downloadable!]
  18. Kenneth R Troske & William J Carrington, 1996. "Sex Segregation in U.S. Manufacturing," Working Papers 96-4, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
  19. Michael Baker & Nicole M. Fortin, 2000. "Occupational Gender Composition and Wages in Canada: 1987-1988," CIRANO Working Papers 2000s-48, CIRANO. [Downloadable!]
    Other versions:
  20. Kevin T. Reilly & Tony S. Wirjanto, 1999. "The Proportion of Females in the Establishment: Discrimination, Preferences and Technology," Canadian Public Policy, University of Toronto Press, vol. 25(s1), pages 73-94, November. [Downloadable!] (restricted)
    Other versions:
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