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Assessing Wage Discrimination in Italy

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  • M. Meschi

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    (South Bank University Business School)

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    Abstract

    In this paper we use a random-coefficient approach to estimate frontier earnings functions by gender, marital status and north-south location for Italy. The results are used to generate estimates of wage discrimination. Although the overall discrimination measure is ambiguous we find that this is due to the counter veiling effect of education and tenure. Most southern-married women with high school or university education are to be found in the public administration sector where they are relatively better paid. The results show that it is education that removes discrimination, rather than sector of activity. Our results also support the crowding-in hypothesis. Southern-married males earn less if they work in sectors in which there is heavier concentration of females.

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    File URL: http://www.sbu.ac.uk/cibs/acrobats/11crop98.pdf
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    Bibliographic Info

    Paper provided by London South Bank University CIBS in its series CIBS Research Papers in International Business with number 11-98.

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    Length: 31 pages
    Date of creation: 1998
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    Handle: RePEc:sbu:cibswp:11-98

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    1. P.A.V.B. Swamy & George S. Tavlas, 1993. "Random coefficient models: theory and applications," Finance and Economics Discussion Series 93-14, Board of Governors of the Federal Reserve System (U.S.).
    2. Polachek, Solomon W & Yoon, Bong Joon, 1987. "A Two-tiered Earnings Frontier Estimation of Employer and Employee Information in the Labor Market," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 296-302, May.
    3. Slottje, Daniel J. & Hirschberg, Joseph G. & Hayes, Kathy J. & Scully, Gerald W., 1994. "A new method for detecting individual and group labor market discrimination," Journal of Econometrics, Elsevier, vol. 61(1), pages 43-64, March.
    4. Kalirajan, K P & Obwona, M B, 1994. "Frontier Production Function: The Stochastic Coefficients Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(1), pages 87-96, February.
    5. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
    6. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S76-S108, Part II, .
    7. Honda, Yuzo, 1982. "On Tests of Equality between Sets of Coefficients in Two Linear Regressions When Disturbance Variances Are Unequal," The Manchester School of Economic & Social Studies, University of Manchester, vol. 50(2), pages 116-25, June.
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