Gender Wage Differentials, Affirmative Action, and Employment Growth on the Industry Level
The present study examines factors that might explain the difference between female and male industry wage premia. It focuses on three industry characteristics in particular -- the extent to which firms in each industry were likely to be targeted for Affirmation Action compliance review or investigation, industry employment growth, and industry profitability. We find strong evidence that all three factors help narrow the gender gap in industry wage premia. Other characteristics that we have looked at, including average plant size, the capital intensity of the production process, both the average level and variance in work education, and changes in overall sales and wage levels were statistically much less important. Our principal finding is that Affirmation Action, employment growth, and profitability each leads to a narrowing of the gender gap in industry wage premia. These effects act independently of each other. With regard to the Affirmation Action variable, our results contract sharply with those of Leonard (1996), who concludes that Affirmative Action had lost its effectiveness as a measure to reduce the gender wage gap in the 1980s. The difference in results is likely attributable to the fact that the dependent variable in his regression analysis is the gender gap in earnings, whereas ours is the gender gap in industry wage premia. In terms of policy implications, our results provide new support to the recent effectiveness of the Affirmative Action program, which is currently under fire from so many sources and has been greatly diminished in size and is also clear that import-competing industries, for which output prices and sales declined during this period, showed smaller wage increases for all workers during the 1980s. This would narrow the gender gap in wage premia, if males had been more likely than females to benefit from rent sharing before the decline in demand for the industry's output, or if males at the top of the wage ladder were more likely than others, of both genders, to have left these industries when demand and pay declines. Sachs and Shatz (1996) support this argument with the observation that the overall gender gap in wages tended to narrow in these industries.
|Date of creation:||05 Nov 1997|
|Date of revision:|
|Note:||Type of Document - WordPerfect; prepared on IBM PC; to print on PostScript; pages: 46; figures: included|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
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.:
- Gittleman, Maury & Wolff, Edward N, 1993. "International Comparisons of Inter-industry Wage Differentials," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 39(3), pages 295-312, September.
- William T. Dickens & Lawrence F. Katz, 1986. "Interindustry Wage Differences and Industry Characteristics," NBER Working Papers 2014, National Bureau of Economic Research, Inc.
- Peter Dolton & Donal O'Neill & Olive Sweetman, 1996. "Gender Differences in the Changing Labor Market: The Role of Legislation and Inequality in Changing the Wage Gap for Qualified Workers in the United Kingdom," Journal of Human Resources, University of Wisconsin Press, vol. 31(3), pages 549-565.
- Pugel, Thomas A, 1980. "Profitability, Concentration and the Interindustry Variation in Wages," The Review of Economics and Statistics, MIT Press, vol. 62(2), pages 248-53, May.
- Donohue, John J, III & Heckman, James, 1991.
"Continuous versus Episodic Change: The Impact of Civil Rights Policy on the Economic Status of Blacks,"
Journal of Economic Literature,
American Economic Association, vol. 29(4), pages 1603-43, December.
- John J. Donohue III & James Heckman, 1991. "Continuous Versus Episodic Change: The Impact of Civil Rights Policy on the Economic Status of Blacks," NBER Working Papers 3894, National Bureau of Economic Research, Inc.
- Leonard, Jonathan S, 1984.
"The Impact of Affirmative Action on Employment,"
Journal of Labor Economics,
University of Chicago Press, vol. 2(4), pages 439-63, October.
- Nachum Sicherman, 1996. "Gender Differences in Departures from a Large Firm," ILR Review, Cornell University, ILR School, vol. 49(3), pages 484-505, April.
- Francine D. Blau & Lawrence M. Kahn, 1992.
"The Gender Earnings Gap: Some International Evidence,"
NBER Working Papers
4224, National Bureau of Economic Research, Inc.
- Francine D. Blau & Lawrence Kahn, 1995. "The Gender Earnings Gap: Some International Evidence," NBER Chapters, in: Differences and Changes in Wage Structures, pages 105-144 National Bureau of Economic Research, Inc.
- Alan B. Krueger & Lawrence H. Summers, 1986. "Reflections on the Inter-Industry Wage Structure," NBER Working Papers 1968, National Bureau of Economic Research, Inc.
- Jonathan S. Leonard, 1983.
"Anti-Discrimination or Reverse Discrimination: The Impact of Changing Demographics, Title VII and Affirmative Action on Productivity,"
NBER Working Papers
1240, National Bureau of Economic Research, Inc.
- Jonathan S. Leonard, 1984. "Antidiscrimination or Reverse Discrimination: The Impact of Changing Demographics, Title VII, and Affirmative Action on Productivity," Journal of Human Resources, University of Wisconsin Press, vol. 19(2), pages 145-174.
- Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-93, March.
- Nachum Sicherman, 1996. "Gender differences in departures from a large firm," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 49(3), pages 484-504, April.
- Masters, Stanley H, 1969. "An Interindustry Analysis of Wages and Plant Size," The Review of Economics and Statistics, MIT Press, vol. 51(3), pages 341-45, August.
- Sachs, Jeffrey D & Shatz, Howard J, 1996. "U.S. Trade with Developing Countries and Wage Inequality," American Economic Review, American Economic Association, vol. 86(2), pages 234-39, May.
- Leonard, Jonathan S, 1986. "What Was Affirmative Action?," American Economic Review, American Economic Association, vol. 76(2), pages 359-63, May.
- Nachum Sicherman, 1993. "Gender Differences in Departure from a Large Firm," NBER Working Papers 4279, National Bureau of Economic Research, Inc.
- Jonathan S. Leonard, 1985. "The Effectiveness of Equal Employment Law and Affirmative Action Regulation," NBER Working Papers 1745, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpma:9711005. 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: (EconWPA)
If references are entirely missing, you can add them using this form.