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Could gender wage discrimination explain regional differences in productivity?

  • Yolanda Pena-Boquete

    ()

  • Melchor Fernandez

Human capital and productive structure could account for an important part of the differences in productivity between Spanish regions; nevertheless we consider that gender wage discrimination could also have effects on it. The existence of a degree of discrimination means that there is a wage differential in which employer prefer to hire less productive workers instead of discriminated workers. Thus, the cost of producing a unit of product would be higher than the cost of producing without discrimination, i.e. discrimination could has effects on productivity. Based on Becker (1957) we develop a maximization problem with discrimination using an aggregate production function with constant elasticity of substitution (CES). As a result, we get a productivity function depending on discrimination and other traditional factors such as wages or production. Our results show that the discrimination growth hast a negative and significant effect on productivity for the Spanish regions.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa11p1272.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa11p1272
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  1. Yolanda Pena-Boquete, 2009. "A comparative analysis of the evolution of gender wage discrimination: Spain vs. Galicia," Papers in Regional Science, Wiley Blackwell, vol. 88(1), pages 161-180, 03.
  2. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
  3. Seguino, Stephanie, 2002. "Gender, quality of life, and growth in Asia 1070 to 1990," MPRA Paper 6547, University Library of Munich, Germany.
  4. Abigail Barr, 1995. "The missing factor: entrepreneurial networks, enterprises and economic growth in Ghana," Economics Series Working Papers WPS/1995-11, University of Oxford, Department of Economics.
  5. Berta Esteve-Volart, 2004. "Gender Discrimination and Growth: Theory and Evidence from India," STICERD - Development Economics Papers - From 2008 this series has been superseded by Economic Organisation and Public Policy Discussion Papers 42, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  6. Ramon Gomez-Salvador & Alberto Musso & Marc Stocker & Jarkko Turunen, 2006. "Labour productivity developments in the euro area," Occasional Paper Series 53, European Central Bank.
  7. Joseph G. Altonji & Rebecca M. Blank, . "Race and Gender in the Labor Market," IPR working papers 98-18, Institute for Policy Resarch at Northwestern University.
  8. Spielmann, Christian & Busse, Matthias, 2005. "Gender Inequality and Trade," Proceedings of the German Development Economics Conference, Kiel 2005 8, Verein für Socialpolitik, Research Committee Development Economics.
  9. Berta Esteve-Volart, 2000. "Sex Discrimination and Growth," IMF Working Papers 00/84, International Monetary Fund.
  10. Dennis J. Aigner & Glen G. Cain, 1977. "Statistical theories of discrimination in labor markets," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 30(2), pages 175-187, January.
  11. Baldwin, Marjorie & Johnson, William G., 1992. "A test of the measures of non-discriminatory wages used to study wage discrimination," Economics Letters, Elsevier, vol. 39(2), pages 223-227, June.
  12. Black, Dan A, 1995. "Discrimination in an Equilibrium Search Model," Journal of Labor Economics, University of Chicago Press, vol. 13(2), pages 309-33, April.
  13. Krugman, Paul R, 1996. "Making Sense of the Competitiveness Debate," Oxford Review of Economic Policy, Oxford University Press, vol. 12(3), pages 17-25, Autumn.
  14. Polachek,Solomon W. & Siebert,W. Stanley, 1993. "The Economics of Earnings," Cambridge Books, Cambridge University Press, number 9780521367288.
  15. Seguino, Stephanie, 2000. "Gender Inequality and Economic Growth: A Cross-Country Analysis," World Development, Elsevier, vol. 28(7), pages 1211-1230, July.
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