Skip to main content

A Distributional Approach for Measuring Wage Discrimination and Occupational Discrimination Separately

  • Chapter
  • First Online:
  • 1426 Accesses

Part of the book series: Studies in Theoretical and Applied Statistics ((STASSPSS))

Abstract

The well-known Blinder–Oaxaca [Blinder, J. Hum. Resour. 8(4), 436–455 (1973); Oaxaca, Int. Econ. Rev. 14(3), 693–709 (1973)] decomposition divides the wage differential between men and women into a part, which can be explained by differences in individual characteristics, and another part, which is usually interpreted as discrimination. This decomposition neglects any distributional issues in evaluating discrimination, thus permitting undesirable compensation between positively and negatively discriminated women. Jenkins [J. Econ. 61(1), 81–102 (1994)] has criticized this aspect, instead, preferring a distributional approach, where the entire distribution of experienced discrimination is evaluated. Following Jenkins [J. Econ. 61(1), 81–102 (1994)], Del Río et~al. [J. Econ. Inequal. 9(1), 57–86 (2011)] use a distributional approach, adapting the Foster–Greer–Thorbecke [Econometrica 52(3), 761–766 (1984)] class of poverty indices to the study of discrimination.

Studies adopting this approach merit little attention as regards the issue of the separate measuring of wage discrimination and occupational discrimination. Alternatively, we have used the Foster–Greer–Thorbecke indices for measuring wage discrimination and occupational discrimination separately. Similar to the technique employed in the Brown–Moon–Zoloth decomposition [J. Hum. Resour. 15(1), 3–28 (1980)], we have employed a multinomial model for estimating the theoretical distribution of women in occupations, which would result in the absence of occupational discrimination.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD   109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Notes

  1. 1.

    For a review of the theories relating to occupational segregation by sex see Blau and Jusenius (1976) and Anker (1997).

  2. 2.

    Remember that if \( \log {W}_{S i}\sim N\left({\boldsymbol{Z}}_{S i}{\boldsymbol{\beta}}_S;{\widehat{\sigma}}_S^2\right) \) then \( {W}_{S i}\sim \log N\left({\boldsymbol{Z}}_{S i}{\boldsymbol{\beta}}_S;{\widehat{\sigma}}_S^2\right) \), thus \( E\left({W}_{S i}\right)= \exp \left({\boldsymbol{Z}}_{S i}{\boldsymbol{\beta}}_S+{\widehat{\sigma}}_S^2\right) \). The estimator \( \exp \left({\boldsymbol{Z}}_{S i}{\widehat{\boldsymbol{\beta}}}_S+{\widehat{\sigma}}_S^2\right) \) is biased but consistent for E(W Si ).

References

  • Anker, R.: Theories of occupational segregation by sex: an overview. Int. Labour Rev. 136(3), 315–339 (1997)

    Google Scholar 

  • Blau, F., Ferber, M.A.: Discrimination: empirical evidence from the United States. Am. Econ. Rev. Pap. Proc. 77(2), 316–320 (1987)

    Google Scholar 

  • Blau, F.D., Jusenius, C.L.: Economists’ approaches to sex segregation in the labor market: an appraisal. Signs 1(3), 181–199 (1976)

    Article  Google Scholar 

  • Blinder, A.: Wage discrimination: reduced form and structural estimates. J. Hum. Resour. 8(4), 436–455 (1973)

    Article  Google Scholar 

  • Brown, R.S., Moon, M., Zoloth, B.S.: Incorporating occupational attainment in studies of male–female earnings differentials. J. Hum. Resour. 15(1), 3–28 (1980)

    Article  Google Scholar 

  • Brown, J.B., Pagán, J.A., Rodríguez-Oreggia, E.: Occupational attainment and gender earnings differentials in Mexico. Ind. Labor Relat. Rev. 53(1), 123–135 (1999)

    Article  Google Scholar 

  • Cain, G.G.: The economic analysis of labor market discrimination: a survey. In: Ashenfelter, O., Laynard, R. (eds.) Handbook of Labor Economics, vol. 1. Elsevier Science Publisher BV, Amsterdam (1986)

    Google Scholar 

  • Chzhen, Y.: Occupational gender segregation and discrimination in Western Europe. Paper prepared for EPUNet conference 2006, Barcellona, 8–9 May 2006

    Google Scholar 

  • Cotton, J.: On the decomposition of wage differentials. Rev. Econ. Stat. 70(2), 236–243 (1988)

    Article  Google Scholar 

  • Del Río, C., Gradín, C., Cantó, O.: The measurement of gender wage discrimination: the distributional approach revisited. J. Econ. Inequal. 9(1), 57–86 (2011)

    Article  Google Scholar 

  • Duncan O., Duncan B.: A Methodological Analysis of Segregation Indexes. Am. Sociol. Rev. 20(2), 210–217 (1955)

    Google Scholar 

  • Foster, J., Greer, J., Thorbecke, E.: A class of decomposable poverty measures. Econometrica 52(3), 761–766 (1984)

    Article  MATH  Google Scholar 

  • Greene, W.H.: Econometric Analysis. Prentice Hall, Upper Saddle River (2003)

    Google Scholar 

  • Hutchens, R.: One measure of segregation. Int. Econ. Rev. 45(2), 555–578 (2004)

    Article  MathSciNet  Google Scholar 

  • Jenkins, S.P.: Earnings discrimination measurement: a distributional approach. J. Econ. 61(1), 81–102 (1994)

    Article  MathSciNet  Google Scholar 

  • Kalter, F.: Measuring Segregation and Controlling for Independent Variables. Working paper n. 19 of the Mannheimer Zentrum für Europaische Sozialforschung

    Google Scholar 

  • Karmel, T., MacLachlan, M.: Occupational sex segregation. Increasing or decreasing? Econ. Rec. 64(3), 187–195 (1998)

    Article  Google Scholar 

  • Kidd, M.P., Shannon, M.: Does the level of occupational aggregation affect estimates of the gender wage gap? Ind. Labor Relat. Rev. 49(2), 317–329 (1996)

    Article  Google Scholar 

  • Long, J.S.: Regression Models for Categorical and Limited Dependent Variables. Sage, Thousand Oaks (1997)

    MATH  Google Scholar 

  • McFadden, D.: Conditional logit analysis of qualitative choice behavior. In: Zarembka, P. (ed.) Frontiers in Econometrics, pp. 105–142. Academic, New York (1974)

    Google Scholar 

  • McFadden, D.: The revealed preferences of a government bureaucracy. Economic Growth Project, Technical Report no. 17. University of California (1968)

    Google Scholar 

  • Miller, P.W.: The wage effect of the occupational segregation of women in Britain. Econ. J. 97(388), 885–896 (1987)

    Article  Google Scholar 

  • Moir, H., Selby, S.J.: Industrial segregation in the Australian labour market. J. Ind. Relations 21(3), 281–291 (1979)

    Article  Google Scholar 

  • Neumark, D.: Employers’ discriminatory behavior and the estimation of wage discrimination. J. Hum. Resour. 23(3), 279–295 (1988)

    Article  Google Scholar 

  • Oaxaca, R.: Male–female wage differential in urban labor markets. Int. Econ. Rev. 14(3), 693–709 (1973)

    Article  Google Scholar 

  • Oaxaca, R.L., Ransom, M.R.: On discrimination and the decomposition of wage differentials. J. Econ. 61(1), 5–21 (1994)

    Article  Google Scholar 

  • Reimers, C.W.: Labor market discrimination against Hispanic and black men. Rev. Econ. Stat. 65(4), 570–579 (1983)

    Article  Google Scholar 

  • Solberg, E.J.: The gender pay gap by occupation: a test of the crowding hypothesis. Contemp. Econ. Policy 23(1), 129–148 (2005)

    Article  Google Scholar 

  • Theil, H.: A multinomial extension of the linear logit model. Int. Econ. Rev. 10(3), 251–259 (1969)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to G. L. Lo Magno .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2014 Springer International Publishing Switzerland

About this chapter

Cite this chapter

Giaimo, R., Lo Magno, G.L. (2014). A Distributional Approach for Measuring Wage Discrimination and Occupational Discrimination Separately. In: Crescenzi, F., Mignani, S. (eds) Statistical Methods and Applications from a Historical Perspective. Studies in Theoretical and Applied Statistics(). Springer, Cham. https://doi.org/10.1007/978-3-319-05552-7_22

Download citation

Publish with us

Policies and ethics