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Job Assignment and the Gender Wage Differential: Theory and Evidence on Finnish Metalworkers

Author

Listed:
  • Juhana Vartiainen

Abstract

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.

Suggested Citation

  • Juhana Vartiainen, 1999. "Job Assignment and the Gender Wage Differential: Theory and Evidence on Finnish Metalworkers," Working Papers 155, Työn ja talouden tutkimus LABORE, Labour Institute for Economic Research LABORE.
  • Handle: RePEc:pst:wpaper:155
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    File URL: https://labore.fi/wp-content/uploads/1999/01/Tutkimusselosteita-155.pdf
    File Function: First version, 1999
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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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