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Article
Publication date: 30 December 2020

Francieli Tonet Maciel

This paper examines the role of occupational segregation in the evolution of wage differentials by gender and race in the Brazilian labor market between 2005 and 2015.

Abstract

Purpose

This paper examines the role of occupational segregation in the evolution of wage differentials by gender and race in the Brazilian labor market between 2005 and 2015.

Design/methodology/approach

The author uses microdata from the National Household Sample Survey and adopts two occupational integration typology to capture both horizontal and vertical segregation. The decomposition method proposed by Firpo et al. (2009) is employed to investigate the determinants of changes in differentials along the wage distribution.

Findings

Results suggest a glass ceiling effect for all groups compared to white men. Gender and racial discrimination persist, especially at the top of the distribution. For both black women and men, observable characteristics account for most of the wage differentials, while for white women, the opposite occurs because of their education level. Vertical segregation behavior indicates that white men continue over-represented in higher-paid occupations. Although women improved their relative position in the occupational hierarchy, horizontal segregation behavior shows that their concentration in female-dominated occupations has not reduced, except in extreme quantiles. Education played a crucial role in reducing wage gaps, and regional differences stood out as a significant factor of the racial disadvantage.

Originality/value

The paper shows significant differences between the groups regarding verticalization and horizontalization of occupational structure along the wage distribution and over time, contributing to filling some gaps in the literature concerning the wage stratification based on gender and race in Brazil. Occupational segregation as a composition factor of the groups determines their positions in a vertically hierarchical and socially stratified occupational structure. The behavior of horizontal and vertical segregations evidences the continue under-valorization of female occupations and the barriers faced by racial and gendered groups to overcome the glass ceiling effect. Recognize the intersectionality of gender and race in addressing inequalities is fundamental to promote policies that overcome them.

Details

International Journal of Manpower, vol. 42 no. 5
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 3 May 2016

Verena Tandrayen-Ragoobur and Rajeev Pydayya

This paper aims to analyse the magnitude of the gender wage disparity in the public and private sectors in Mauritius across both mean differentials and overall wage

Abstract

Purpose

This paper aims to analyse the magnitude of the gender wage disparity in the public and private sectors in Mauritius across both mean differentials and overall wage distribution. The paper then decomposed the gender wage differential using the Oaxaca and Blinder (1973) decomposition technique.

Design/methodology/approach

The study uses cross-sectional data from the Continuous Multi-Purpose Household Budget Survey (CMPHS), from 2006 to 2013. The sample size on average is around 12,000 households surveyed per year.

Findings

The results reveal that that gender wage differentials are prevalent in both economic sectors; however, the disparity is more pronounced in the private sector. In addition, the differences in wages are larger at the bottom compared to the top end of the wage distribution, suggesting the presence of sticky floors. Lastly, it was observed that the unexplained wage gap (discrimination) is higher in the private sector than in public sector across the years.

Originality/value

The literature on the gender wage gap in Africa is limited. This paper adds to the existing literature on gender wage differential with an analysis of the gender wage disparity across the public and private sectors in Mauritius.

Details

Gender in Management: An International Journal, vol. 31 no. 3
Type: Research Article
ISSN: 1754-2413

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Article
Publication date: 1 April 2005

Shoshana Neuman and Ronald L. Oaxaca

To examine gender and ethnic wage structures and wage differentials an Israel and decompose the difference in wages into endowments, discrimination and selectivity components.

Abstract

Purpose

To examine gender and ethnic wage structures and wage differentials an Israel and decompose the difference in wages into endowments, discrimination and selectivity components.

Design/methodology/approach

Selection and wage equations are estimated for each of the population groups (Eastern women, Western women, Eastern men, Western men) separately. The wage equations are corrected for selectivity using the Heckman procedure and subsequently wage differentials are decomposed into the three components mentioned above, using four alternative decompositions suggested in 2004 by Neuman and Oaxaca.

Findings

Gender wage differentials are significantly larger than ethnic differences. Discrimination is more common between the genders. The four alternative decompositions – that are based on different assumptions and objectives – yield different results.

Research limitations/implications

Decomposition of wage differences between groups needs to take into account information on the local relevant labor market and the wage setting process.

Practical implications

Information on the relative shares of the endowments, discrimination and selectivity components leads to a more effective way to close wage gaps.

Originality/value

Employment of new proposed decomposition methodologies that might lead to practical implications to combat gender and ethnic wage gaps in Israel.

Details

International Journal of Manpower, vol. 26 no. 3
Type: Research Article
ISSN: 0143-7720

Keywords

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Book part
Publication date: 20 June 2003

M.Melinda Pitts

It is well-known that the majority of women work in a limited number of occupations characterized by a proportionately high number of female workers. Moreover, workers in…

Abstract

It is well-known that the majority of women work in a limited number of occupations characterized by a proportionately high number of female workers. Moreover, workers in these female-dominated (FD) occupations earn less, on average, than workers in traditionally male or integrated occupations (McPherson & Hirsch, 1995). This occupational wage differential is widely accepted as a partial explanation for the pervasive gender wage-differential. However, it is unclear why an individual would enter into a FD occupation if the wages are lower than in nonfemale-dominated (NFD) occupations. It is also unclear if women who choose FD occupations could earn more in occupations that are NFD. Therefore, attributing a portion of the gender wage differential to occupational differences may be incorrect. Indeed, differences in the occupational choices of men and women will only explain the wage differential between genders if females in FD occupations could expect to earn higher wages elsewhere.

Details

Worker Well-Being and Public Policy
Type: Book
ISBN: 978-1-84950-213-9

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Article
Publication date: 12 July 2011

Giovanni Sulis

This paper seeks to study gender wage differentials in Italy using first‐order predictions of monopsony‐search models. It compares empirical predictions of these models…

Abstract

Purpose

This paper seeks to study gender wage differentials in Italy using first‐order predictions of monopsony‐search models. It compares empirical predictions of these models against other competing ones of wage determination in non‐competitive settings.

Design/methodology/approach

The paper looks at the empirical relevance of the model in terms of third degree wage discrimination among men and women by estimating the labour supply elasticity to the individual firm. It also tests the monopsony model using a “natural” experiment. Italian administrative longitudinal data from INPS are used.

Findings

Women have lower elasticity of labour supply to the individual firm: employer size regressions indicate larger effects (and consequently lower elasticity) for women as predicted by the monopsony model. Using the theoretical dynamic monopsony‐search model of Burdett and Mortensen, wage elasticity of separations and recruits confirm this result. Using relative men/women employment effects resulting from institutional changes in wage indexation mechanism (Scala Mobile), it is found that relative male employment responded differently in the two periods to the exogenous relative increase in the wage differential, as predicted by the monopsony model. Search frictions explain about 50 per cent of the gender differential.

Research limitations/implications

No role for discrimination. Better controls for rents and union status would be needed. More rich firm data would be needed.

Originality/value

The paper is one of the few attempts of testing implications of monopsony models in unionised labour markets, such as Italy, after some important reforms in wage bargaining agreements. The change in institutional agreements is an interesting test for different theories of wage determination.

Details

International Journal of Manpower, vol. 32 no. 4
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 27 May 2014

Julia Bredtmann and Sebastian Otten

– The purpose of this paper is to provide empirical evidence on the gender wage differential of labor market entrants and the determinants of their starting wages.

Abstract

Purpose

The purpose of this paper is to provide empirical evidence on the gender wage differential of labor market entrants and the determinants of their starting wages.

Design/methodology/approach

The paper makes use of a unique data set on graduates in economics from a large German university that contains detailed information on the graduates’ course of study, their additional qualifications and their transition from university to the labor market. Based on these data, Mincer-type earnings functions as well as wage decompositions as proposed by Blinder (1973) and Oaxaca (1973) are performed.

Findings

The paper finds a significant gender wage differential of 7 percent. Blinder-Oaxaca decompositions suggest that the major part of this gap remains unexplained by gender differences in observable characteristics.

Research limitations/implications

The main feature of our analysis – having a highly homogeneous sample of graduates from a single university – comes at the costs of reduced ability to draw generalized conclusions from our findings.

Originality/value

This paper investigates the determinants of entry wages for a homogeneous group of high-skilled workers using a unique data set of graduates in business and economics from a large German university. Concentrating on a highly homogeneous sample limits the problem of unobserved heterogeneity, which results in an overestimation of the unexplained component of standard decompositions analyses. Hence, the finding that a large part of the gender pay gap remains unexplained can be considered as an indicator for gender discrimination in the labor market for economics graduates.

Details

International Journal of Manpower, vol. 35 no. 3
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 1 May 2002

Kerry Brown and Stacy Ridge

This article presents the results of an exploratory study of wage outcomes in the West Australian public sector. The research aimed to determine the effect of gender

Abstract

This article presents the results of an exploratory study of wage outcomes in the West Australian public sector. The research aimed to determine the effect of gender segregation on pay bargaining outcomes in a deregulated industrial relations regime. In the first part of the article, public sector employment relations are discussed and analysed. The second part provides a synopsis of the changes in the legislative and industrial relations environment in Western Australia. The final part examines the effect of gender segregation on bargaining outcomes in the Western Australian public sector.

Details

Equal Opportunities International, vol. 21 no. 3
Type: Research Article
ISSN: 0261-0159

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Article
Publication date: 1 April 2004

Antonio Caparrós Ruiz, María Lucía Navarro Gómez and Mario Federico Rueda Narváez

Equal treatment for men and women is an important objective of labour policy in the European Union, largely because there is ample evidence of gender discrimination in the…

Abstract

Equal treatment for men and women is an important objective of labour policy in the European Union, largely because there is ample evidence of gender discrimination in the wages of men and women, which are on an average higher for male workers. Research on male‐female wage differentials provides evidence of a substantial wage differential favouring men after adjusting for human capital and personal characteristics such as education, age, job tenure, and labour force intermittency. However, few studies take into account the role that job mobility plays in this differential, despite its demonstrated importance in explaining the earnings profile of workers. This paper estimates gender wage differentials for workers who switch jobs and those who keep them in order to see whether job mobility enlarges or reduces the gender gap. The study uses microdata relative to Spanish workers gathered from the Households Panel Study (1994‐1997), conducted by the Spanish National Statistics Institute.

Details

International Journal of Manpower, vol. 25 no. 3/4
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 25 June 2020

Tushar Agrawal

The purpose of this paper is to examine the interrelation between two important dimensions of gender segregation: education and occupation. It further investigates the…

Abstract

Purpose

The purpose of this paper is to examine the interrelation between two important dimensions of gender segregation: education and occupation. It further investigates the gender wage gap.

Design/methodology/approach

The author uses a three-way additive decomposition of the mutual information index – an index based on the concept of entropy. A non-parametric wage decomposition method that uses matching comparisons is used for measuring the wage gap.

Findings

The results show that the extent of gender segregation in India is higher in urban areas than that in rural areas. Most of the observed segregation in rural labour markets originates from educational outcomes, whereas in urban markets it is due to occupational profile of individuals. The findings of the wage decomposition analysis suggest that education in rural areas also explains a sizeable part of the gender wage differential. Nevertheless, a large share of the wage gap remains unexplained in both rural and urban areas.

Originality/value

While much research has looked at occupational segregation, less attention has been paid to educational segregation. The paper uses a unique approach to understand the joint effect of occupation and education in explaining gender segregation.

Details

International Journal of Manpower, vol. 42 no. 1
Type: Research Article
ISSN: 0143-7720

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Article
Publication date: 1 April 2004

Carola Grün

Only few studies have examined gender wage differentials and the extent of gender discrimination in South Africa. The following analysis covers several years after the end…

Abstract

Only few studies have examined gender wage differentials and the extent of gender discrimination in South Africa. The following analysis covers several years after the end of Apartheid to describe the development of gender wage differentials and discrimination over time. Furthermore, it is also taken into account that labour force participants may have different probabilities of finding employment. By estimating selectivity corrected wage regressions it is not only possible to decompose wage gaps into the well‐known endowment and discrimination components but also detect the so‐called indirect effects that already arise at the selection into employment stage. Results obtained from this approach can drastically change the impression of wage discrimination gained from standard decomposition techniques. African women were found to increasingly suffer from discrimination at the hiring stage, whereas White women are more affected by direct wage discrimination.

Details

International Journal of Manpower, vol. 25 no. 3/4
Type: Research Article
ISSN: 0143-7720

Keywords

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