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Understanding socio-demographic disparities in the labor market : the case for a motivation-based theory

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  • Olivier Baguelin

    ()
    (EUREQUA - Equipe Universitaire de Recherche en Economie Quantitative - CNRS : UMR8594 - Université Paris I - Panthéon-Sorbonne)

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    Abstract

    This paper puts the empirical case for a motivation-based theory of socio-demographic disparities in the labor market. We first present the basic knowledge as regards earnings disparities in the labor market and sum up the classic assessment of the theoretical literature focusing on pure pay discrimination. We then make an attempt to demonstrate that the relevant issues as regards socio-demographic disparities in the labor market, are rather hiring discrimination and, above all, occupational segregation. In this spirit, we have provided in an early work a motivation-based theory of hiring discrimination suggesting a particular pattern of socio-demographic occupational segregation. We check what our model suggests both against statistical and micro evidence. We end with a discussion of the links between our approach and dominant existing theories.

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    File URL: http://halshs.archives-ouvertes.fr/docs/00/19/61/32/PDF/V05064.pdf
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    Bibliographic Info

    Paper provided by HAL in its series Post-Print with number halshs-00196132.

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    Date of creation: Sep 2005
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    Handle: RePEc:hal:journl:halshs-00196132

    Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00196132
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    Related research

    Keywords: Occupational segregation; hiring discrimination; earnings gap;

    References

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    1. Harry J. Holzer, 1998. "Employer skill demands and labor market outcomes of blacks and women," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 52(1), pages 82-98, October.
    2. Lucas, Robert E B, 1974. "The Distribution of Job Characteristics," The Review of Economics and Statistics, MIT Press, vol. 56(4), pages 530-40, November.
    3. Jane Waldfogel, 1998. "Understanding the "Family Gap" in Pay for Women with Children," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 137-156, Winter.
    4. Melissa Osborne & Herbert Gintis & Samuel Bowles, 2001. "The Determinants of Earnings: A Behavioral Approach," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1137-1176, December.
    5. 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.
    6. Maury B. Gittleman & David R. Howell, 1995. "Changes in the structure and quality of jobs in the United States: Effects by race and gender, 1973û1990," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 48(3), pages 420-440, April.
    7. Sundstrom, William A., 1994. "The Color Line: Racial Norms and Discrimination in Urban Labor Markets, 1910–1950," The Journal of Economic History, Cambridge University Press, vol. 54(02), pages 382-396, June.
    8. Jeremy I. Bulow & Lawrence H. Summers, 1986. "A Theory of Dual Labor Markets with Application to Industrial Policy, Discrimination and Keynesian Unemployment," NBER Working Papers 1666, National Bureau of Economic Research, Inc.
    9. Harry J. Holzer, 1998. "Why Do Small Establishments Hire Fewer Blacks Than Large Ones?," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 896-914.
    10. P. A. Riach & J. Rich, 2002. "Field Experiments of Discrimination in the Market Place," Economic Journal, Royal Economic Society, vol. 112(483), pages 480-518, November.
    11. Neumark, David, 1996. "Sex Discrimination in Restaurant Hiring: An Audit Study," The Quarterly Journal of Economics, MIT Press, vol. 111(3), pages 915-41, August.
    12. James S. Cunningham & Nadja Zalokar, 1992. "The economic progress of black women, 1940û1980: Occupational distribution and relative wages," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 45(3), pages 540-555, April.
    13. H. J. Holzer & K. R. Ihlanfeldt, . "Customer Discrimination and Employment Outcomes for Minority Workers," Institute for Research on Poverty Discussion Papers 1122-97, University of Wisconsin Institute for Research on Poverty.
    14. Kenneth J. Arrow, 1998. "What Has Economics to Say about Racial Discrimination?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 91-100, Spring.
    15. William A. Darity & Patrick L. Mason, 1998. "Evidence on Discrimination in Employment: Codes of Color, Codes of Gender," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 63-90, Spring.
    16. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
    17. Peter Riach & Judith Rich, 2002. "Field experiments of discrimination in the market place," Natural Field Experiments 00328, The Field Experiments Website.
    18. George A. Akerlof & Rachel E. Kranton, 2005. "Identity and the Economics of Organizations," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 9-32, Winter.
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