Does Comparable Worth Work in a Decentralized Labor Market?
We investigate the effect of pro-active comparable worth legislation---covering both the public and private sectors---on wages, the gender wage gap and the gender composition of employment. The focus is the pay equity initiative of the Canadian province of Ontario in the early 1990s. We document substantial lapses in compliance and problems with the implementation of the law among smaller firms where the majority of men and women work. This evidence provides important lessons of the obstacles to extending pay equity to the private sector of a decentralized labor market. When we focus on those sectors of the labor market where compliance was relatively strict, our results suggest that any positive effects on the wages of women in female jobs were very modest. Our most consistently estimated effects of the law on wages are negative: slower wage growth for women in male jobs and for men in female jobs.
|Date of creation:||11 Apr 2000|
|Date of revision:|
|Contact details of provider:|| Postal: 150 St. George Street, Toronto, Ontario|
Phone: (416) 978-5283
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- George A. Akerlof & Rachel E. Kranton, 2000. "Economics and Identity," The Quarterly Journal of Economics, Oxford University Press, vol. 115(3), pages 715-753.
- Orazem, Peter F & Mattila, J Peter, 1990.
"The Implementation Process of Comparable Worth: Winners and Losers,"
Journal of Political Economy,
University of Chicago Press, vol. 98(1), pages 134-52, February.
- Mattila, J. Peter & Orazem, Peter, 1990. "The Implementation Process of Comparable Worth: Winners and Losers," Staff General Research Papers Archive 10842, Iowa State University, Department of Economics.
- Kenneth R Troske & Kimberly N Bayard & Judith Hellerstein & David Neumark, 1998.
"New Evidence On Sex Segregation And Sex Differences In Wages From Matched Employee-Employer Data,"
98-18, Center for Economic Studies, U.S. Census Bureau.
- Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 2003. "New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee-Employer Data," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 887-922, October.
- Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 1999. "New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee-Employer Data," NBER Working Papers 7003, National Bureau of Economic Research, Inc.
- Macpherson, David A & Hirsch, Barry T, 1995. "Wages and Gender Composition: Why Do Women's Jobs Pay Less?," Journal of Labor Economics, University of Chicago Press, vol. 13(3), pages 426-71, July.
- Jeff Borland, 1999. "The Equal Pay Case-Thirty Years On," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(3), pages 265-272.
- Orley Ashenfelter & Robert Smith, 1977.
"Compliance with the Minimum Wage Law,"
478, Princeton University, Department of Economics, Industrial Relations Section..
- Nicole M. Fortin & Michael Baker, 1999.
"Women's Wages in Women's Work: A U.S./Canada Comparison of the Roles of Unions and "Public Goods" Sector Jobs,"
American Economic Review,
American Economic Association, vol. 89(2), pages 198-203, May.
- Michael Baker & Nicole M. Fortin, 1999. "Women's Wages in Women's Work: A US/Canada Comparison of the Roles of Unions and Public Goods Sector Jobs," CIRANO Working Papers 99s-02, CIRANO.
- Johnson, George & Solon, Gary, 1986. "Estimates of the Direct Effects of Comparable Worth Policy," American Economic Review, American Economic Association, vol. 76(5), pages 1117-25, December.
- 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.
- Mark R. Killingsworth, 1987. "Heterogeneous Preferences, Compensating Wage Differentials, and Comparable Worth," The Quarterly Journal of Economics, Oxford University Press, vol. 102(4), pages 727-742.
- O'Neill, June & Brien, Michael & Cunningham, James, 1989. "Effects of Comparable Worth Policy: Evidence from Washington State," American Economic Review, American Economic Association, vol. 79(2), pages 305-09, May.
- Perry C. Beider & B. Douglas Bernheim & Victor R. Fuchs & John B. Shoven, 1986. "Comparable Worth in a General Equilibrium Model of the U.S. Economy," NBER Working Papers 2090, National Bureau of Economic Research, Inc.
- Ehrenberg, Ronald G & Smith, Robert S, 1987. "Comparable-Worth Wage Adjustments and Female Employment in the State and Local Sector," Journal of Labor Economics, University of Chicago Press, vol. 5(1), pages 43-62, January.
- Judith A. McDonald & Robert J. Thornton, 1998. "Private-Sector Experience with Pay Equity in Ontario," Canadian Public Policy, University of Toronto Press, vol. 24(2), pages 185-208, June.
When requesting a correction, please mention this item's handle: RePEc:tor:tecipa:baker-00-02. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (RePEc Maintainer)
If references are entirely missing, you can add them using this form.