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Measurement Error in Job Evaluation and the Gender Wage Gap

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  • Chen, Shih-Neng
  • Orazem, Peter F.
  • Mattila, J. Peter
  • Greig, Jeffrey J.

Abstract

Job evaluation is used to establish pay for many workers in the United States and has been used to measure the extent of pay discrimination. However, job evaluations are subject to measurement error that can bias these estimates. Using computed reliability ratios to adjust for measurement error in a study of Iowa state government jobs, we find that measurement errors exaggerate the implied extent of discrimination against predominantly female jobs by 34%-44%. Measurement errors also exaggerate the number of independent job factors which affect pay. A practical procedure for making these corrections is illustrated.

Suggested Citation

  • Chen, Shih-Neng & Orazem, Peter F. & Mattila, J. Peter & Greig, Jeffrey J., 1999. "Measurement Error in Job Evaluation and the Gender Wage Gap," ISU General Staff Papers 199904010800001335, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genstf:199904010800001335
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    Cited by:

    1. Simonetta Longhi & Cheti Nicoletti & Lucinda Platt, 2012. "Interpreting Wage Gaps of Disabled Men: The Roles of Productivity and of Discrimination," Southern Economic Journal, John Wiley & Sons, vol. 78(3), pages 931-953, January.
    2. John Forth & Nikolaos Theodoropoulos & Alex Bryson, 2023. "The role of the workplace in ethnic wage differentials," British Journal of Industrial Relations, London School of Economics, vol. 61(2), pages 259-290, June.

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