Assessing Wage Discrimination in Italy
In this paper we use a random-coefficient approach to estimate frontier earnings functions by gender, marital status and north-south location for Italy. The results are used to generate estimates of wage discrimination. Although the overall discrimination measure is ambiguous we find that this is due to the counter veiling effect of education and tenure. Most southern-married women with high school or university education are to be found in the public administration sector where they are relatively better paid. The results show that it is education that removes discrimination, rather than sector of activity. Our results also support the crowding-in hypothesis. Southern-married males earn less if they work in sectors in which there is heavier concentration of females.
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