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Movin' on Up: Hierarchical Occupational Segmentation and Gender Wage Gaps

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Author Info

  • Shatnawi, Dina

    ()
    (Naval Postgraduate School)

  • Oaxaca, Ronald L.

    ()
    (University of Arizona)

  • Ransom, Michael R.

    ()
    (Brigham Young University)

Abstract

Our study evaluates and extends existing wage decomposition methodologies that seek to measure the contributions of endowments, pure wage discrimination, and job segregation. Of particular interest is the model of hierarchical segregation in Baldwin, Butler, and Johnson (2001). We employ data from a regional supermarket that faced a Title VII class-action lawsuit to examine how standard wage specifications integrated with a model of hierarchical segregation might perform in wage decompositions. Our results show that a common misspecification of the wage structure leads to false inferences about the presence of pure wage discrimination. We demonstrate the generalizability of our methodology using CPS data.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7001.

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Length: 54 pages
Date of creation: Nov 2012
Date of revision:
Handle: RePEc:iza:izadps:dp7001

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Keywords: gender discrimination; job segregation; wage decompositions;

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  1. Goldin, Claudia, 1992. "Understanding the Gender Gap: An Economic History of American Women," OUP Catalogue, Oxford University Press, number 9780195072709, September.
  2. Javier Gardeazabal & Aratza Ugidos, . "More on identification in detailed wage decompositions," Studies on the Spanish Economy 140, FEDEA.
  3. Baldwin, Marjorie L & Butler, Richard J & Johnson, William G, 2001. "A Hierarchical Theory of Occupational Segregation and Wage Discrimination," Economic Inquiry, Western Economic Association International, vol. 39(1), pages 94-110, January.
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