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Inter-Industry Gender Wage Gaps by Knowledge Intensity: Discrimination and Technology in Korea

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Author Info
William C. Horrace () (Center for Policy Research, Maxwell School, Syracuse University, Syracuse NY 13244-1020)
Beyza P. Ural () (Department of Economics, Syracuse University)
Jin Hwa Jung () (Department of Agricultural Economics and Rural Development, Seoul National University)

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Abstract

A new gender wage gap decomposition methodology is introduced that does not suffer from the identification problem caused by unobserved non-discriminatory wage structure. The methodology is used to measure the relative size of Korean gender wage gaps from 1994 to 2000 across industries, differentiated by industrial knowledge intensity, where knowledge intensity is the extent to which industries produce or employ high-technology products. Korea represents an important case study, since it possesses one of the fast growing knowledge-intensive economies, among industrialized countries. Empirical results indicate that over this period, discrimination (the unexplained portion of the gender wage gaps) in Korea was statistically smaller in knowledge-intensive industries than in industries with low knowledge intensity. Also, discrimination was declining on average over the period. This suggests that continued growth in knowledge-intensive industries in Korea may lead to further declines in the overall gender gap.

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File URL: http://www-cpr.maxwell.syr.edu/cprwps/pdf/wp79.pdf
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Publisher Info
Paper provided by Center for Policy Research, Maxwell School, Syracuse University in its series Center for Policy Research Working Papers with number 79.

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Length: 35 pages
Date of creation: Mar 2006
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Handle: RePEc:max:cprwps:79

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Related research
Keywords: discrimination; labor markets; wage differential; compensation;

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Find related papers by JEL classification:
C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Hypothesis Testing
F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. William C. Horrace, 2005. "On the ranking uncertainty of labor market wage gaps," Journal of Population Economics, Springer, vol. 18(1), pages 181-187, 09. [Downloadable!] (restricted)
    Other versions:
  2. Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 309-33, April. [Downloadable!] (restricted)
  3. Marianne A. Ferber & Carole A. Green, 1982. "Traditional or reverse sex discrimination? A case study of a large public university," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 35(4), pages 550-564, July.
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  5. Blau, Francine D. & Kahn, Lawrence M., 1999. "Analyzing the gender pay gap," The Quarterly Review of Economics and Finance, Elsevier, vol. 39(5), pages 625-646. [Downloadable!] (restricted)
  6. Gibbons, Robert & Katz, Lawrence F, 1992. "Does Unmeasured Ability Explain Inter-industry Wage Differentials?," Review of Economic Studies, Blackwell Publishing, vol. 59(3), pages 515-35, July. [Downloadable!] (restricted)
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  7. Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March. [Downloadable!] (restricted)
  8. repec:rus:hseeco:9982 is not listed on IDEAS
  9. Judith Fields & Edward N. Wolff, 1995. "Interindustry wage differentials and the gender wage gap," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 49(1), pages 105-120, October.
  10. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October. [Downloadable!] (restricted)
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  11. Judith K. Hellerstein & David Neumark & Kenneth R. Troske, 1998. "Market Forces and Sex Discrimination," Labor and Demography 9807002, EconWPA. [Downloadable!]
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  12. John M. Abowd & Francis Kramarz & David N. Margolis, 1999. "High Wage Workers and High Wage Firms," Econometrica, Econometric Society, vol. 67(2), pages 251-334, March.
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  13. Jin Hwa Jung & Kang-Shik Choi, 2004. "Gender wage differentials and discrimination in Korea: comparison by knowledge intensity of industries," International Economic Journal, Korean International Economic Association, vol. 18(4), pages 561-579, December. [Downloadable!] (restricted)
  14. Marc J. Melitz, 2003. "The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity," Econometrica, Econometric Society, vol. 71(6), pages 1695-1725, November. [Downloadable!] (restricted)
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  15. William C. Horrace & Ronald L. Oaxaca, 2001. "Inter-industry wage differentials and the gender wage gap: An identification problem," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 54(3), pages 611-618, April.
  16. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
  17. repec:rus:hseeco:122439 is not listed on IDEAS
  18. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier. [Downloadable!] (restricted)
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