Job Assignment and the Gender Wage Differential: Theory and Evidence on Finnish Metalworkers
We study the determinants of the gender wage differential by using a data set on Finnish blue-collar metalworkers. The assignment of men and women into jobs of different complexity is a key factor that widens the final wage differential. Using the theory of optimal job assignment, we propose a model of individual productivity, ability and job complexity and formulate a hypothesis of asymmetric assignment according to which men and women of equal ability are allocated to different job levels. Using econometric panel data techniques, we find support for this hypothesis. The results are consistent with the Lazear-Rosen model of job ladders but can alternatively be interpreted as evidence for gender discrimination in job assignment.
|Date of creation:||01 Apr 1999|
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- Lazear, Edward P & Rosen, Sherwin, 1990. "Male-Female Wage Differentials in Job Ladders," Journal of Labor Economics, University of Chicago Press, vol. 8(1), pages 106-123, January.
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- David Neumark, 1988.
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University of Wisconsin Press, vol. 23(3), pages 279-295.
- David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
- Winter-Ebmer, Rudolf & Zweimuller, Josef, 1997. "Unequal Assignment and Unequal Promotion in Job Ladders," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 43-71, January.
- Breusch, Trevor S & Mizon, Grayham E & Schmidt, Peter, 1989. "Efficient Estimation Using Panel Data," Econometrica, Econometric Society, vol. 57(3), pages 695-700, May.
- Heckman, James J & Sedlacek, Guilherme, 1985. "Heterogeneity, Aggregation, and Market Wage Functions: An Empirical Model of Self-selection in the Labor Market," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1077-1125, December.
- 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.
- Amemiya, Takeshi & MaCurdy, Thomas E, 1986. "Instrumental-Variable Estimation of an Error-Components Model," Econometrica, Econometric Society, vol. 54(4), pages 869-880, July. Full references (including those not matched with items on IDEAS)
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