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

Author

Listed:
  • 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 for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp7001
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. Goldin, Claudia, 1992. "Understanding the Gender Gap: An Economic History of American Women," OUP Catalogue, Oxford University Press, number 9780195072709.
    4. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    5. Ronald L. Oaxaca & Michael R. Ransom, 1999. "Identification in Detailed Wage Decompositions," The Review of Economics and Statistics, MIT Press, vol. 81(1), pages 154-157, February.
    6. Baldwin, Marjorie L & Butler, Richard J & Johnson, William G, 2001. "A Hierarchical Theory of Occupational Segregation and Wage Discrimination," Economic Inquiry, Western Economic Association International, vol. 39(1), pages 94-110, January.
    7. 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.
    8. Sarnikar, Supriya & Sorensen, Todd A. & Oaxaca, Ronald L., 2007. "Do You Receive a Lighter Prison Sentence Because You Are a Woman? An Economic Analysis of Federal Criminal Sentencing Guidelines," IZA Discussion Papers 2870, Institute for the Study of Labor (IZA).
    9. Elaine Sorensen, 1990. "The Crowding Hypothesis and Comparable Worth," Journal of Human Resources, University of Wisconsin Press, vol. 25(1), pages 55-89.
    10. Bergmann, Barbara R, 1989. "Does the Market for Women's Labor Need Fixing?," Journal of Economic Perspectives, American Economic Association, vol. 3(1), pages 43-60, Winter.
    11. Ronald Oaxaca & Michael Ransom, 2003. "Using Econometric Models for Intrafirm Equity Salary Adjustments," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(3), pages 221-249, December.
    12. Malkiel, Burton G & Malkiel, Judith A, 1973. "Male-Female Pay Differentials in Professional Employment," American Economic Review, American Economic Association, vol. 63(4), pages 693-705, September.
    13. Jurajda, Stepán & Paligorova, Teodora, 2009. "Czech female managers and their wages," Labour Economics, Elsevier, vol. 16(3), pages 342-351, June.
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    Cited by:

    1. 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.
    2. Jung, Seeun & Choe, Chung & Oaxaca, Ronald L., 2016. "Gender Wage Gaps and Risky vs. Secure Employment: An Experimental Analysis," IZA Discussion Papers 10132, Institute for the Study of Labor (IZA).
    3. 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.
    4. repec:jle:journl:173 is not listed on IDEAS
    5. 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.

    More about this item

    Keywords

    wage decompositions; job segregation; gender discrimination;

    JEL classification:

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

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