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Occupational assignment, hiring discrimination, and the gender pay gap


  • Eric Solberg


An identified, structural demand-wage equation is estimated using endogenous indicators for working part-time and occupational assignment. The wage equation is estimated by two-stage and ordinary least squares, and the pay gap is decomposed into explained and residual parts. Measures of gender-based wage discrimination are estimated after making adjustments to account for hiring discrimination and occupational preferences. The evidence indicates that gender differences in preferences for occupation explain much of the gap, yet there is still evidence of hiring discrimination. As a percentage of male wages, the discriminatory gap adjusted for hiring discrimination lies between 10.5 and 13.5 percent when estimated by ordinary least squares, and between 2.2 and 5.4 percent when estimated by two-stage least squares. Copyright International Atlantic Economic Society 2004

Suggested Citation

  • Eric Solberg, 2004. "Occupational assignment, hiring discrimination, and the gender pay gap," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 32(1), pages 11-27, March.
  • Handle: RePEc:kap:atlecj:v:32:y:2004:i:1:p:11-27
    DOI: 10.1007/BF02298615

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    References listed on IDEAS

    1. Conway, Delores A. & Roberts, Harry V., 1994. "Analysis of employment discrimination through homogeneous job groups," Journal of Econometrics, Elsevier, vol. 61(1), pages 103-131, March.
    2. McKenzie, C R & McAleer, Michael, 1994. "On the Effects of Misspecification Errors in Models with Generated Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 56(4), pages 441-455, November.
    3. Miller, P. W., 1995. "Effects on earnings of the removal of direct discrimination in minimum wage rates: A validation of the Blinder decomposition," Labour Economics, Elsevier, vol. 2(1), pages 106-106, March.
    4. Michael P. Kidd & Michael Shannon, 1994. "An Update and Extension of the Canadian Evidence on Gender Wage Differentials," Canadian Journal of Economics, Canadian Economics Association, vol. 27(4), pages 918-938, November.
    5. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    6. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-243, May.
    7. Andrew M. Gill, 1994. "Incorporating the Causes of Occupational Differences in Studies of Racial Wage Differentials," Journal of Human Resources, University of Wisconsin Press, vol. 29(1), pages 20-41.
    8. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
    9. Blau, Francine D & Ferber, Marianne A, 1987. "Discrimination: Empirical Evidence from the United States," American Economic Review, American Economic Association, vol. 77(2), pages 316-320, May.
    10. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    11. T.D. Stanley & Stephen B. Jarrell, 1998. "Gender Wage Discrimination Bias? A Meta-Regression Analysis," Journal of Human Resources, University of Wisconsin Press, vol. 33(4), pages 947-973.
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    Cited by:

    1. Marlene Kim, 2013. "Race and ethnicity in the workplace," Chapters,in: Handbook of Research on Gender and Economic Life, chapter 14, pages 218-235 Edward Elgar Publishing.

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