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Gender earnings inequality in the service and manufacturing industries in the U.S

Author

Listed:
  • Michael Greene
  • Emily Hoffnar

Abstract

This paper compares earnings inequality between women and men in a growing sector of the U.S. economy - the service sector, and a shrinking sector - manufacturing. We examine the hypothesis that deindustrialization will reduce inequality, and find that the absolute magnitude of the gender earnings gap is, in fact, smaller in the service sector. Decomposition analysis is used to partition the gender earnings gap into three parts: (1) earnings differences due to differences in mean characteristics - such as education and experience; (2) earnings differences due to preferential treatment of men; and (3) earnings differences due to disadvantageous treatment of women. The latter two constitute estimates of gender discrimination. The results of this study suggest that, ceteris paribus, deirndustrialization will likely reduce the gender gap in hourly earnings. However, this will come at the cost of lower earnings for both males and females, with the drop in earnings being particularly large for males. While deindustrialization is predicted to reduce the absolute magnitude of male-female earnings inequality, evidence suggests that gender discrimination will persist - discrimination explains about 60 percent of the gender wage gap in both the service and the manufacturing sectors.

Suggested Citation

  • Michael Greene & Emily Hoffnar, 1995. "Gender earnings inequality in the service and manufacturing industries in the U.S," Feminist Economics, Taylor & Francis Journals, vol. 1(3), pages 82-95.
    • Handle: RePEc:taf:femeco:v:1:y:1995:i:3:p:82-95
    DOI: 10.1080/714042250
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    Citations

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    Cited by:

    1. Neyer, Ulrike & Stempel, Daniel, 2019. "Macroeconomic effects of gender discrimination," DICE Discussion Papers 324, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    2. Ebru Kongar, 2005. "Importing Equality or Exporting Jobs?: Competition and Gender Wage and Employment Differentials in U.S. Manufacturing," Working Paper Series, Department of Economics, University of Utah 2005_13, University of Utah, Department of Economics.
    3. Shosh Shahrabani, 2007. "Sources of gender wage gap in different economic sectors: the Israeli case," Applied Economics Letters, Taylor & Francis Journals, vol. 14(14), pages 1019-1022.
    4. Neyer, Ulrike & Stempel, Daniel, 2021. "Gender discrimination, inflation, and the business cycle," Journal of Macroeconomics, Elsevier, vol. 70(C).
    5. Gunseli Berik, 2000. "Mature Export-Led Growth and Gender Wage Inequality in Taiwan," Feminist Economics, Taylor & Francis Journals, vol. 6(3), pages 1-26.
    6. Stempel, Daniel & Neyer, Ulrike, 2019. "The Effects of Gender Discrimination in DSGE Models," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203556, Verein für Socialpolitik / German Economic Association.

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