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Discrimination by Parts: A Fixed-Effects Analysis of Starting Pay Differences across Gender

Author

Listed:
  • Mary E. Graham

    (Department of Management Science, George Washington University)

  • Julie L. Hotchkiss

    (Georgia State University)

  • Barry Gerhart

    (Vanderbilt University)

Abstract

A unique employer-level data set is used to provide insight not only to the degree of discrimination that may exist , but also to the source of that potential discrimination. Results from decomposing individual wage equations indicate that, as legislatively defined, employers do not appear to be discriminating against their women hires to a large extent. When aggregated, however, the pay, job placement, and hiring discrimination estimates yield an overall discrimination estimate of a 6% gap in pay between men and women. These results suggest that a more comprehensive approach may be warranted in flagging possible discriminatory behavior.

Suggested Citation

  • Mary E. Graham & Julie L. Hotchkiss & Barry Gerhart, 2000. "Discrimination by Parts: A Fixed-Effects Analysis of Starting Pay Differences across Gender," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 9-27, Winter.
    • Handle: RePEc:eej:eeconj:v:26:y:2000:i:1:p:9-27
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume26/V26N1P9_27.pdf
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    Citations

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    Cited by:

    1. Mary E. Graham & Julie L. Hotchkiss, 2008. "Elimination of gender-related employment disparities through statistical process control," FRB Atlanta Working Paper 2008-24, Federal Reserve Bank of Atlanta.
    2. Yanming Li & Kangyin Lu & Kaiyuan Wang, 2021. "Inequality in the Initial Wage of College Graduates at the College-Level Perspective," Sustainability, MDPI, vol. 13(24), pages 1-15, December.
    3. Christopher R. Bollinger & Julie L. Hotchkiss, 2003. "The Upside Potential of Hiring Risky Workers: Evidence from the Baseball Industry," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 923-944, October.
    4. Graham, Mary E. & Hotchkiss, Julie L., 2009. "A More Proactive Approach to Addressing Gender-related Employment Disparities in the United States," MPRA Paper 44795, University Library of Munich, Germany.
    5. Judith A. McDonald & Robert J. Thornton, 2007. "Do New Male and Female College Graduates Receive Unequal Pay?," Journal of Human Resources, University of Wisconsin Press, vol. 42(1).
    6. Doris Weichselbaumer & Juliane Ransmayr, 2022. "The role of sex segregation in the gender wage gap among university graduates in Germany," Economics working papers 2022-12, Department of Economics, Johannes Kepler University Linz, Austria.
    7. Wayne A. Grove & Andrew Hussey & Michael Jetter, 2011. "The Gender Pay Gap Beyond Human Capital: Heterogeneity in Noncognitive Skills and in Labor Market Tastes," Journal of Human Resources, University of Wisconsin Press, vol. 46(4), pages 827-874.

    More about this item

    Keywords

    Discrimination; Gender; Pay; Wage; Women;
    All these keywords.

    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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