Discrimination, Segregation and Firm Effects: Some U.K. Microevidence
In samples of employees from two firms, women are segregated in low-pay occupations and therefore receive lower returns on their (similar) educational qualifications than men. In the primary-sector, capital intensive, unionised firm, all wages are much higher. In the secondary-sector firm, rewarding qualifications and experience at the rates found in the primary firm would increase earnings (including fringe benefits) by about 80%, much more than the usual firm-size or industry differential.
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