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The Effects of Gender and Race on Salary Growth: The Role of Occupational Structure in a Service Sector Firm


  • Jennifer M. Mellor

    (University of Maryland)

  • Elizabeth A. Paulin

    (La Salle University)


Using data from a financial services firm, the determinants of salary growth are estimated in a two-stage model with special attention given to the roles of gender and race. While the analysis reveals no overt bias in salary growth decisions, there is evidence of institutional bias within one branch of the firm. In that branch the proportion of white females in an occupation is negatively related to salary growth for all but white males. Additional analysis suggests that rules governing promotion and salary growth differ for white males, white females, and minority workers within this branch. Interestingly, the same analysis of a second branch leads to quite different conclusions.

Suggested Citation

  • Jennifer M. Mellor & Elizabeth A. Paulin, 1995. "The Effects of Gender and Race on Salary Growth: The Role of Occupational Structure in a Service Sector Firm," Eastern Economic Journal, Eastern Economic Association, vol. 21(3), pages 375-392, Summer.
  • Handle: RePEc:eej:eeconj:v:21:y:1995:i:3:p:375-392

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    Cited by:

    1. Polachek, Solomon W., 2008. "Earnings Over the Life Cycle: The Mincer Earnings Function and Its Applications," Foundations and Trends(R) in Microeconomics, now publishers, vol. 4(3), pages 165-272, April.

    More about this item


    Bias; Female; Gender; Occupation; Race;

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity


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