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Wage Determination by Gender and Visible Minority Status: Evidence from the 1989 LMAS

  • Louis N. Christofides
  • Robert Swidinsky

The 1989 Labour Market Activity Survey (LMAS) is used to examine the wage implications of membership in groups distinguished by gender and visible minority status. White men, minority men, white women and minority women earn an average hourly wage of $14.73, $12.48, $11.33 and $10.97, respectively. We examine whether these rates and their pair-wise differences can be explained by productivity-related characteristics, and conclude that less then 30 percent of the offered wage differentials between white males-minority females, white males-white females and white males-minority males can be attributed to productivity-related factors. We also conclude that virtually none of the differentials between minority males-white females and white females-minority females can be explained by productivity factors. Approximately 11 percent of the wage differential between minority males and minority females is due to differences in productivity characteristics.

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Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 20 (1994)
Issue (Month): 1 (March)
Pages: 34-51

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Handle: RePEc:cpp:issued:v:20:y:1994:i:1:p:34-51
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  1. Borjas, George J, 1985. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," Journal of Labor Economics, University of Chicago Press, vol. 3(4), pages 463-89, October.
  2. Gronau, Reuben, 1974. "Wage Comparisons-A Selectivity Bias," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1119-43, Nov.-Dec..
  3. Peter George & Peter Kuhn, 1994. "The Size and Structure of Native-White Wage Differentials in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 27(1), pages 20-42, February.
  4. Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  5. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
  6. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  7. Francine D. Blau & Lawrence M. Kahn, 1992. "Race and Gender Pay Differentials," NBER Working Papers 4120, National Bureau of Economic Research, Inc.
  8. Charles M. Beach & Christopher Worswick, 1993. "Is There a Double-Negative Effect on the Earnings of Immigrant Women?," Canadian Public Policy, University of Toronto Press, vol. 19(1), pages 36-53, March.
  9. Chiswick, Barry R, 1978. "The Effect of Americanization on the Earnings of Foreign-born Men," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 897-921, October.
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