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Comparable worth in a decentralized labour market: the case of Ontario

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  • Michael Baker
  • Nicole Fortin

Abstract

We document the application of pro-active pay equity legislation to the private sector of the Canadian province of Ontario in the early 1990s. We report substantial lapses in compliance among smaller firms where the majority of men and women work. We also find that the pay equity law had no effect on aggregate wages in female jobs or on the gender wage gap. This experience provides unique perspectives on (1) the tensions between the workings of a decentralized labour market and the principles of comparable worth and (2) the obstacles to its extension to the private sector.

Suggested Citation

  • Michael Baker & Nicole Fortin, 2004. "Comparable worth in a decentralized labour market: the case of Ontario," Canadian Journal of Economics, Canadian Economics Association, vol. 37(4), pages 850-878, November.
    • Handle: RePEc:cje:issued:v:37:y:2004:i:4:p:850-878
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    References listed on IDEAS

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    1. Ingeborg HEIDE, 1999. "Supranational action against sex discrimination: Equal pay and equal treatment in the European Union," International Labour Review, International Labour Organization, vol. 138(4), pages 381-410, December.
    2. Orazem, Peter F & Mattila, J Peter, 1990. "The Implementation Process of Comparable Worth: Winners and Losers," Journal of Political Economy, University of Chicago Press, vol. 98(1), pages 134-152, February.
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    4. Michael Baker & Nicole Fortin, 2000. "Does Comparable Worth Work in a Decentralized Labor Market?," CIRANO Working Papers 2000s-49, CIRANO.
    5. Judith A. McDonald & Robert J. Thornton, 1998. "Private-Sector Experience with Pay Equity in Ontario," Canadian Public Policy, University of Toronto Press, vol. 24(2), pages 185-208, June.
    6. Michael Baker & Nicole M. Fortin, 2001. "Occupational gender composition and wages in Canada, 1987–1988," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 34(2), pages 345-376, May.
    7. Mark R. Killingsworth, 1987. "Heterogeneous Preferences, Compensating Wage Differentials, and Comparable Worth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(4), pages 727-742.
    8. Johnson, George & Solon, Gary, 1986. "Estimates of the Direct Effects of Comparable Worth Policy," American Economic Review, American Economic Association, vol. 76(5), pages 1117-1125, December.
    9. O'Neill, June & Brien, Michael & Cunningham, James, 1989. "Effects of Comparable Worth Policy: Evidence from Washington State," American Economic Review, American Economic Association, vol. 79(2), pages 305-309, May.
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    Cited by:

    1. Karsten Albæk & Mona Larsen & Lars Stage Thomsen, 2017. "Segregation and gender wage gaps in the private and the public sectors: an analysis of Danish linked employer–employee data, 2002–2012," Empirical Economics, Springer, vol. 53(2), pages 779-802, September.
    2. Arup Bose & Debashis Pal & David E. M. Sappington, 2010. "Equal Pay for Unequal Work: Limiting Sabotage in Teams," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(1), pages 25-53, March.
    3. Fortin, Nicole M. & Bell, Brian & Böhm, Michael, 2017. "Top earnings inequality and the gender pay gap: Canada, Sweden, and the United Kingdom," Labour Economics, Elsevier, vol. 47(C), pages 107-123.
    4. Luiza Antonie & Miana Plesca & Jennifer Teng, 2016. "Heterogeneity in the Gender Wage Gap in Canada," Working Papers 1603, University of Guelph, Department of Economics and Finance.
    5. Michael Baker & Marie Drolet, 2010. "A New View of the Male/Female Pay Gap," Canadian Public Policy, University of Toronto Press, vol. 36(4), pages 429-464, December.
    6. Tammy Schirle, 2015. "The Gender Wage Gap in the Canadian Provinces, 1997-2014," Canadian Public Policy, University of Toronto Press, vol. 41(4), pages 309-319, December.
    7. Nicole M. Fortin, 2019. "Increasing earnings inequality and the gender pay gap in Canada: Prospects for convergence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 52(2), pages 407-440, May.
    8. Singh, Vikkram & Shirazi, Homayoun & Turetken, Jessica, 2022. "COVID-19 and gender disparities: Labour market outcomes," Research in Economics, Elsevier, vol. 76(3), pages 206-217.
    9. Morley Gunderson, 2006. "Viewpoint: Male‐female wage differentials: how can that be?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 39(1), pages 1-21, February.

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    More about this item

    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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