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Movin' on Up: Hierarchical Occupational Segmentation and Gender Wage Gaps

Author

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  • Shatnawi, Dina

    (Naval Postgraduate School)

  • Oaxaca, Ronald L.

    (University of Arizona)

  • Ransom, Michael R.

    (Brigham Young University)

Abstract

Our study evaluates and extends existing wage decomposition methodologies that seek to measure the contributions of endowments, pure wage discrimination, and job segregation. Of particular interest is the model of hierarchical segregation in Baldwin, Butler, and Johnson (2001). We employ data from a regional supermarket that faced a Title VII class-action lawsuit to examine how standard wage specifications integrated with a model of hierarchical segregation might perform in wage decompositions. Our results show that a common misspecification of the wage structure leads to false inferences about the presence of pure wage discrimination. We demonstrate the generalizability of our methodology using CPS data.

Suggested Citation

  • Shatnawi, Dina & Oaxaca, Ronald L. & Ransom, Michael R., 2012. "Movin' on Up: Hierarchical Occupational Segmentation and Gender Wage Gaps," IZA Discussion Papers 7001, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7001
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    References listed on IDEAS

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    1. F. L. Jones, 1983. "On Decomposing the Wage Gap: A Critical Comment on Blinder's Method," Journal of Human Resources, University of Wisconsin Press, vol. 18(1), pages 126-130.
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    3. Javier Gardeazabal & Arantza Ugidos, 2004. "More on Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 1034-1036, November.
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    6. Myeong-Su Yun, 2005. "A Simple Solution to the Identification Problem in Detailed Wage Decompositions," Economic Inquiry, Western Economic Association International, vol. 43(4), pages 766-772, October.
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    1. repec:jle:journl:173 is not listed on IDEAS
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    3. Katarzyna Bech & Joanna Tyrowicz, 2017. "Estimating gender wage gap in the presence of efficiency wages -- evidence from European data," GRAPE Working Papers 20, GRAPE Group for Research in Applied Economics.
    4. Yannick L’Horty & Dominique Meurs, 2016. "Introduction. Analyser les inégalités salariales entre les hommes et les femmes dans la fonction publique avec les données du Système d’information sur les agents des services publics," Économie et Statistique, Programme National Persée, vol. 488(1), pages 89-95.
    5. Jung, SeEun & Choe, Chung & Oaxaca, Ronald L., 2018. "Gender wage gaps and risky vs. secure employment: An experimental analysis," Labour Economics, Elsevier, vol. 52(C), pages 112-121.
    6. Michael R. Strain & Douglas A. Webber, 2017. "High school experiences, the gender wage gap, and the selection of occupation," Applied Economics, Taylor & Francis Journals, vol. 49(49), pages 5040-5049, October.

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    JEL classification:

    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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