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Group versus individual discrimination among young workers: a distributional approach

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Author Info
Donata Favaro (Università degli Studi di Padova, Dipartimento di Scienze Economiche 'Marco Fanno')
Stefano Magrini (Università degli Studi di Venezia 'Ca' Foscari', Dipartimento di Scienze Economiche)

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Abstract

We evaluate the gender wage gap and the unexplained gender wage differential for workers 15-29 year old during the period 1990-1997, using a particularly rich set of data from the Italian Social Security System covering all individuals in the labour markets of two Italian provinces. We estimate separate earnings functions for men and women correcting for endogeneity of education and we evaluate gender discrimination by studying the entire distribution of the unexplained wage gap as suggested by Jenkins (1994). We evaluate discrimination against females by means of bivariate density functions. This innovation makes it possible to condition the density distribution on the marginal distribution of any characteristic and to evaluate more precisely the existence of group and individual discrimination. Our analysis suggests that discrimination is not evenly distributed among women, in relation to their characteristics; in particular, there is evidence of lower discrimination against highly educated females. Moreover in 1997, compared to 1990, discrimination increased in a appreciable way, affecting human capital rich females more significantly. While our work is based in a very local context the richness of the data and the methodological innovation give the results a wider application.

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Paper provided by EconWPA in its series Labor and Demography with number 0506003.

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Length: 27 pages
Date of creation: 07 Jun 2005
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Handle: RePEc:wpa:wuwpla:0506003

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Keywords: wage differentials wage discrimination gender

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J - Labor and Demographic Economics

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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. Jenkins, Stephen P., 1994. "Earnings discrimination measurement : A distributional approach," Journal of Econometrics, Elsevier, vol. 61(1), pages 81-102, March. [Downloadable!] (restricted)
  2. D Quah, 1996. "Convergence," CEP Discussion Papers 0290, Centre for Economic Performance, LSE. [Downloadable!]
  3. Kunze, Astrid, 2002. "Gender Differences in Entry Wages and Early Career Wages," IZA Discussion Papers 626, Institute for the Study of Labor (IZA). [Downloadable!]
  4. Xiaohong Chen & Oliver Linton & Peter M Robinson, 2001. "The Estimation of Conditional Densities," STICERD - Econometrics Paper Series /2001/415, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
  5. Brunello, Giorgio & Miniaci, Raffaele, 1999. "The economic returns to schooling for Italian men. An evaluation based on instrumental variables1," Labour Economics, Elsevier, vol. 6(4), pages 509-519, November. [Downloadable!] (restricted)
  6. Loprest, Pamela J, 1992. "Gender Differences in Wage Growth and Job Mobility," American Economic Review, American Economic Association, vol. 82(2), pages 526-32, May. [Downloadable!] (restricted)
  7. Dolton, Peter J & Makepeace, Gerald H, 1987. "Marital Status, Child Rearing and Earnings Differentials in the Graduate Labour Market," Economic Journal, Royal Economic Society, vol. 97(388), pages 897-922, December. [Downloadable!] (restricted)
  8. Overman, Henry G. & Ioannides, Yannis M., 2001. "Cross-Sectional Evolution of the U.S. City Size Distribution," Journal of Urban Economics, Elsevier, vol. 49(3), pages 543-566, May. [Downloadable!] (restricted)
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  9. Loury, Glenn C, 1981. "Intergenerational Transfers and the Distribution of Earnings," Econometrica, Econometric Society, vol. 49(4), pages 843-67, June. [Downloadable!] (restricted)
  10. Card, David, 2001. "Estimating the Return to Schooling: Progress on Some Persistent Econometric Problems," Econometrica, Econometric Society, vol. 69(5), pages 1127-60, September.
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  11. Brunello, Giorgio & Comi, Simona & Lucifora, Claudio, 2000. "The Returns to Education in Italy: A New Look at the Evidence," IZA Discussion Papers 130, Institute for the Study of Labor (IZA). [Downloadable!]
  12. Kunze, Astrid, 2000. "The Determination of Wages and the Gender Wage Gap: A Survey," IZA Discussion Papers 193, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Wood, Robert G & Corcoran, Mary E & Courant, Paul N, 1993. "Pay Differences among the Highly Paid: The Male-Female Earnings Gap in Lawyers' Salaries," Journal of Labor Economics, University of Chicago Press, vol. 11(3), pages 417-41, July. [Downloadable!] (restricted)
  14. 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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Cited by:
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  1. Tindara ADDABBO & Donata Favaro, 2007. "Education and wage differentials by gender in Italy," CHILD Working Papers wp04_07, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
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