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Francine D. Blau's
Scholarly Papers
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730 |
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1.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations
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08 Oct 96
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22 Mar 00
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530 (13,145)
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Abstract:
Empirical research on gender pay gaps has traditionally focused on the role of gender-specific factors, particularly gender differences in qualifications and differences in the treatment of otherwise equally qualified male and female workers (i.e., labor market discrimination). This paper explores the determinants of the gender pay gap and argues for the importance of an additional factor, wage structure, the array of prices set for labor market skills and the rewards received for employment in favored sectors. Drawing on joint work with Lawrence Kahn, I illustrate the impact of wage structure by presenting empirical results analyzing its effect on international differences in the gender gap and trends over time in the gender differential in the U.S.
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2.
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Changes in the Labor Supply Behavior of Married Women: 1980-2000
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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10 May 05
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25 Jul 06
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176 ( 48,517) |
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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24 Jul 06
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25 Jul 06
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Using March Current Population Survey (CPS) data, we investigate married women's labor supply behavior from 1980 to 2000. We find that their labor supply function for annual hours shifted sharply to the right in the 1980s, with little shift in the 1990s. In an accounting sense, this is the major reason for the more rapid growth of female labor supply observed in the 1980s, with an additional factor being that husbands' real wages fell slightly in the 1980s but rose in the 1990s. Moreover, a major new development was that, during both decades, there was a dramatic reduction in women's own wage elasticity. And, continuing past trends, women's labor supply also became less responsive to their husbands' wages. Between 1980 and 2000, women's own wage elasticity fell by 50 to 56 percent, while their cross wage elasticity fell by 38 to 47 percent in absolute value. These patterns hold up under virtually all alternative specifications correcting for: selectivity bias in observing wage offers; selection into marriage; income taxes and the earned income tax credit; measurement error in wages and work hours; and omitted variables that affect both wage offers and the propensity to work; as well as when age groups, education groups and mothers of small children are analyzed separately.
labor supply, married women, wages
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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10 May 05
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10 May 05
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Abstract:
Using March Current Population Survey (CPS) data, we investigate married women's labor supply behavior from 1980 to 2000. We find that their labor supply function for annual hours shifted sharply to the right in the 1980s, with little shift in the 1990s. In an accounting sense, this is the major reason for the more rapid growth of female labor supply observed in the 1980s, with an additional factor being that husbands' real wages fell slightly in the 1980s but rose in the 1990s. Moreover, a major new development was that, during both decades, there was a dramatic reduction in women's own wage elasticity. And, continuing past trends, women's labor supply also became less responsive to their husbands' wages. Between 1980 and 2000, women's own wage elasticity fell by 50 to 56 percent, while their cross wage elasticity fell by 38 to 47 percent in absolute value. These patterns hold up under virtually all alternative specifications correcting for: selectivity bias in observing wage offers; selection into marriage; income taxes and the earned income tax credit; measurement error in wages and work hours; and omitted variables that affect both wage offers and the propensity to work; as well as when education groups and mothers of small children are analyzed separately.
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3.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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12 Jun 00
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02 Apr 01
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149 (56,901)
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Abstract:
We consider the gender pay gap in the United States. Both gender-specific factors, including gender differences in qualifications and discrimination, and overall wage structure, the rewards for skills and employment in particular sectors, importantly influence the gender pay gap. Declining gender differentials in the U.S., and the more rapid closing of the gender pay gap in the U.S. than elsewhere, appear to be primarily due to gender-specific factors. However, the relatively large gender pay gap in the U.S. compared to a number of other advanced countries seems primarily attributable to the very high level of U.S. wage inequality.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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24 Jul 06
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07 Aug 06
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99 (79,529)
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Using Michigan Panel Study of Income Dynamics (PSID) data, we study the slowdown in the convergence of female and male wages in the 1990s compared to the 1980s. We find that changes in human capital did not contribute to the slowdown, since women's relative human capital improved comparably in the two decades. Occupational upgrading and deunionization had a larger positive effect on women's relative wages in the 1980s, explaining a portion of the slower 1990s convergence. However, the largest factor was that the "unexplained" gender wage gap fell much faster in the 1980s than the 1990s. Our evidence suggests that changes in labor force selectivity, changes in gender differences in unmeasured characteristics and in labor market discrimination, as well as changes in the favorableness of demand shifts each may have contributed to the slowing convergence of the unexplained gender pay gap.
gender pay gap, wage differentials
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5.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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24 Mar 04
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13 Oct 04
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89 (85,788)
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Using microdata from the 1994-8 International Adult Literacy Survey (IALS) for nine countries, we examine the role of cognitive skills in explaining higher wage inequality in the United States. We find that while the greater dispersion of cognitive test scores in the United States plays a part in explaining higher U.S. wage inequality, higher labor market prices (i.e., higher returns to measured human capital and cognitive performance) and greater residual inequality still play important roles, and are, on average, quantitatively considerably more important than differences in the distribution of test scores in explaining higher U.S. wage inequality.
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6.
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Comparative Analysis of Labor Market Outcomes: Lessons for the US from International Long-Run Evidence
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Giuseppe Bertola Universita di Torino - Dipartimento di Economia Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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04 Oct 01
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18 Apr 08
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Giuseppe Bertola Universita di Torino - Dipartimento di Economia Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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13 Nov 01
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18 Apr 08
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We analyze a 1960-96 panel of OECD countries to explain why the US has moved from relatively high to relatively low unemployment over the last three decades. We find that while macroeconomic and demographic shocks and changing labor market institutions explain a modest portion of this change, the interaction of these shocks and labor market institutions is the most important factor explaining the shift in US relative unemployment. Our finding of the central importance of these interactions is consistent with Blanchard and Wolfers (2000). We also show that, controlling for country- and time-specific effects, high employment is associated with low wage levels and high levels of wage inequality. These findings suggest that US relative unemployment has fallen in recent years in part because its more flexible labor market institutions allow shocks to affect real and relative wages to a greater degree than is true in other countries. Disaggregating, we find that the employment of both younger and older people fell sharply in other countries relative to the United States since the 1970s, with much smaller differences in outcomes among the prime-aged. In the late 1990s, the US had lower unemployment than our models predict, suggesting exceptionally favorable recent US experience.
Wage inequality, demographics
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Giuseppe Bertola Universita di Torino - Dipartimento di Economia Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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04 Oct 01
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18 Apr 08
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Abstract:
We analyze a 1960-96 panel of OECD countries to explain why the US moved from relatively high to relatively low unemployment over the last three decades. We find that while macroeconomic and demographic shocks and changing labor market institutions explain a modest portion of this change, the interaction of these shocks and labor market institutions is the most important factor explaining the shift in US relative unemployment. Our finding of the central importance of these interactions is consistent with Blanchard and Wolfers (2000). We also show that, controlling for country- and time-specific effects, high employment is associated with low wage levels and high levels of wage inequality. These findings suggest that US relative unemployment has fallen in recent years in part because its more flexible labor market institutions allow shocks to affect real and relative wages to a greater degree than is true in other countries. Disaggregating, we find that the employment of both younger and older people fell sharply in other countries relative to the United States since the 1970s, with much smaller differences in outcomes among the prime-aged. In the late 1990s, the US had lower unemployment than our models predict, suggesting exceptionally favorable recent US experience.
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7.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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09 Nov 04
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09 Nov 04
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54 (114,738)
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Abstract:
We use data from the Michigan Panel Study of Income Dynamics (PSID) to study the slowdown in the convergence of female and male wages in the 1990s compared to the 1980s. We found that changes in human capital did not contribute to the trends, since women improved their relative human capital to a comparable extent in the 1980s and the 1990s. Occupational upgrading of women and deunionization explained a portion of the slower 1990s convergence since the positive effect of these factors on women's relative wage gains was larger in the 1980s. However, the largest factor accounting for the slowing of wage convergence was the trend in the "unexplained gap," which was sufficient to more than fully account for the slowdown in wage convergence in the 1990s. Factors that may have contributed to the slower narrowing of the unexplained gender pay gap include changes in labor force selectivity, changes in gender differences in unmeasured characteristics and labor market discrimination, and changes in the favorableness of supply and demand shifts. We find some evidence consistent with each of these factors suggesting that each may have played a role in explaining the observed trends.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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31 Mar 01
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26 Jul 01
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47 (122,119)
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Abstract:
This paper tests the hypotheses that overall wage compression and low female supply relative to demand reduce a country's gender pay gap. Using micro-data for 22 countries over the 1985-94 period, we find that more compressed male wage structures and lower female net supply are both associated with a lower gender pay gap. Since it is likely that labor market institutions are responsible for an important portion of international differences in wage inequality, the inverse relationship between the gender pay gap and male wage inequality suggests that wage-setting mechanisms, such as encompassing collective bargaining agreements, that provide for relatively high wage floors raise the relative pay of women, who tend to be at the bottom of the wage distribution. Consistent with this view, we find that the extent of collective bargaining coverage in each country is significantly negatively associated with its gender pay gap. Moreover, the effect of pay structures on the gender pay gap is quantitatively very important: a large part of the difference in the gender differential between high gap and low gap countries is explained by the differences across these countries in overall wage structure, with another potentially important segment due to differences in female net supply.
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9.
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Trends in the Well-Being of American Women, 1970-1995
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Francine D. Blau Cornell University - School of Industrial and Labor Relations
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Posted:
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10 Jun 98
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Last Revised:
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12 Feb 01
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44 (125,495) |
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Francine D. Blau Cornell University - School of Industrial and Labor Relations
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11 Jun 00
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12 Feb 01
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This paper examines the trends in the well-being of American women over the last 25 years, a time of significant changes in the relative economic status of women and in the labor market as a whole. A broad range of indicators are considered to capture changes in women's well-being in the family as well as in the labor market. For virtually all age and education groups, substantial evidence is obtained of rising gender equality in labor market outcomes, notably labor force participation, wages, and occupational distributions. Broad evidence is also found of greater gender parity within married couple families as the housework time of husbands increased relative to wives' and the relative wages of wives rose compared to their husbands'. However, parallel to the recent evidence of the declining labor market position of lower skilled men, there has been a similar deterioration in the economic status of less educated women, especially high school dropouts. Their labor force participation rates and wages have risen at a much slower pace than those of more highly educated women, while their incidence of single headship has increased much more rapidly. These findings for less educated women serve to underscore the widening gap between more and less skilled Americans of both sexes, as well as to emphasize its broad dimensions.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations
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10 Jun 98
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10 Jun 98
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Abstract:
This paper examines the trends in the well-being of American women over the last 25 years, a time of significant changes in the relative economic status of women and in the labor market as a whole. Substantial evidence is obtained of rising gender equality in labor market outcomes and in the allocation of housework within married couple families. However, parallel to the recent evidence of the declining labor market position of lower skilled men, there has been a similar deterioration in the economic status of less educated women, especially high school dropouts, across a wide variety of dimensions.
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10.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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04 Aug 00
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02 Jan 02
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34 (138,089)
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Abstract:
This paper uses micro-data to analyze international differences in the gender pay gap among a sample of ten industrialized nations. We particularly focus on explaining the surprisingly low ranking of the U.S. in comparison to other industrialized countries. Empirical research on gender pay gaps has traditionally focused on the role of gender-specific factors, particularly gender differences in qualifications and differences in the treatment of otherwise equally qualified male and female workers (i.e., labor market discrimination). An innovative feature of our study is to focus on the role of wage structure - the array of prices set for various labor market skills - in influencing the gender gap. The striking finding of this study is the enormous importance of overall wage structure in explaining the lower ranking of U.S. women. Our results suggest that the U.S. gap would be similar to that in countries like Sweden, Italy and Australia (the countries with the smallest gaps) if the U.S. had their level of wage inequality. This insight helps to resolve three puzzling sets of facts: (1) U.S women compare favorably with women in other countries in terms of human capital and occupational status; (2) the U.S. has had a longer and often stronger commitment to equal pay and equal employment opportunity policies than have most of the other countries in our sample; but (3) the gender pay gap is alrger in the U.S. than in most industrialized countries. An important part of the explanation of this pattern is that the labor market in the U.S. places a much larger penalty of those with lower levels of labor market skills (both measured and unmeasured).
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11.
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Giuseppe Bertola Universita di Torino - Dipartimento di Economia Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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08 Jul 02
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18 Apr 08
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33 (139,494)
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Abstract:
Using data from 17 OECD countries over the 1960-96 period, we investigate the impact of institutions on the relative employment of youth, women, and older individuals. Theoretically, we show that labor market institutions meant to improve workers' income share imply larger disemployment effects for groups whose labor supply is more elastic. Using an empirical model that allows us to control for unmeasured country-specific factors that affect relative employment and unemployment, we find that, for both men and women, more extensive involvement of unions in wage-setting significantly decreases the employment rate of young and older individuals relative to the prime-aged, with no significant effects on the relative unemployment of these groups. In contrast, a larger role for unions has insignificant effects on male-female employment differentials, but raises female unemployment relative to male unemployment. These results suggest that union wage-setting policies price the young and elderly out of employment and drive disemployed individuals in these groups to non-labor-force (education, retirement) states. A possible scenario for women is that high union wages encourage female labor force participation, but that women who would otherwise be disemployed by high wage floors are able to find work in unregulated sectors or are absorbed by public employment.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations
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10 Jun 00
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21 Jun 00
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31 (142,387)
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Abstract:
Empirical research on gender pay gaps has traditionally focused on the role of gender-specific factors, particularly gender differences in qualifications and differences in the treatment of otherwise equally qualified male and female workers (i.e., labor market discrimination). This paper explores the determinants of the gender pay gap and argues for the importance of an additional factor, wage structure, the array of prices set for labor market skills and the rewards received for employment in favored sectors. Drawing on joint work with Lawrence Kahn, I illustrate the impact of wage structure by presenting empirical results analyzing its effect on international differences in the gender gap and trends over time in the gender differential in the U.S.
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13.
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International Differences in Male Wage Inequality: Institutions versus Market Forces
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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Posted:
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20 May 98
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24 Aug 00
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31 (142,387) |
96
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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20 Aug 00
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24 Aug 00
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While changes in the demand for skilled labor appear to have led to a widening of the wage structures in many countries during the 198Os,considerable differences in the level of wage inequality remain. In this paper, we examine the sources of these differences, focusing primarily on explaining the considerably higher level of wage inequality in the U.S. We find that the greater overall dispersion of the U.S. wage distribution reflects considerably more compression at the bottom of the distribution in the other countries, but relatively little difference in the degree of wage inequality at the top. While differences in the distribution of measured characteristics help to explain some aspects of the international differences, U.S. labor market prices--that is, higher rewards to labor market skills-are an important factor. Labor market institutions, chiefly the relatively decentralized wage-setting mechanisms in the U.S. compared to other countries, appear to provide the most persuasive explanation for these international differences in prices. In contrast, the pattern of cross-country differences in relative supplies of and demands for skills does not appear to be consistent with the pattern of observed differences in wage inequality.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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20 May 98
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20 May 98
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This paper studies the considerably higher level of wage inequality in the United States than in nine other OECD countries. We find that the greater overall U.S. wage dispersion primarily reflects substantially more compression at the bottom of the wage distribution in the other countries. While differences in the distribution of measured characteristics help to explain some aspects of the international differences, higher U.S. prices (i.e., rewards to skills and rents) are an important factor. Labor market institutions, chiefly the relatively decentralized wage- setting mechanisms in the United States, provide the most persuasive explanation for these patterns.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations Jane Waldfogel Columbia University - School of Social Work
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17 May 00
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10 Apr 01
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29 (145,664)
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Using the 1970, 1980 and 1990 Censuses, we investigate the impact of labor and marriage market conditions on the incidence of marriage of young women (age 16-24). We employ a two-stage methodology. First, across individuals, marriage is regressed on personal characteristics and MSA indicators, separately by race and education group. Second, the first-stage MSA effects are regressed on MSA-level labor and marriage market conditions and welfare benefits using cross-section and fixed effects models, including both first and second difference equations. Better female labor markets, worse female marriage markets and worse male labor markets are found to lower marriage rates for whites in all education groups. Results for these variables for blacks are sensitive to estimation technique, although stronger results are obtained for an older age group (25-34). While welfare benefits have a negative effect in cross-sectional analyses, the association becomes considerably weaker in fixed effects specifications.
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Continuing Progress? Trends in Occupational Segregation in the United States over the 1970s and 1980s
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Patricia A. Simpson University of Illinois at Chicago Deborah Anderson University of Arizona - College of Education
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28 Feb 99
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01 Aug 00
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29 (145,664) |
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Patricia A. Simpson University of Illinois at Chicago Deborah Anderson University of Arizona - College of Education
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01 Aug 00
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01 Aug 00
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This study uses comparable data on 470 detailed occupations from the 1970, 1980 and 1990 Censuses to analyze trends in occupational segregation in the United States in the 1980s and compare them in detail to the 1970s experience of declining segregation. We find that the trend towards reduced segregation did indeed continue into the 1980s at only a slightly slower pace. In both decades, changes in sex composition within occupations accounted for the major share of the decline in segregation (compared to changes in the mix of occupations in the economy). We also find that the pattern of changes in the sex composition of occupations and in the employment distribution of workers that produced the observed reductions in segregation were remarkably similar in each of these two periods. This similarity potentially poses some problems for the future. As women continue to enter the same areas, resegregation, which we found to have relatively moderate effects in the 1970s and 1980s, becomes an increasing possibility. Continued progress towards reducing occupational segregation requires that women succeed in entering a broader range of traditionally male occupations and/or a greater flow of men into traditionally female occupations.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Patricia A. Simpson University of Illinois at Chicago Deborah Anderson University of Arizona - College of Education
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28 Feb 99
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29 May 99
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Abstract:
This study uses comparable data on 470 detailed occupations from the 1970, 1980, and 1990 Censuses to analyze trends in occupational segregation in the United States in the 1980s and compare them in detail to the 1970s experience of declining segregation. We find that the trend towards reduced segregation did indeed continue into the 1980s at only a slightly slower pace. In both decades, changes in sex composition within occupations accounted for the major share of the decline in segregation (compared to changes in the mix of occupations in the economy). We also find that the pattern of changes in the sex composition of occupations and in the employment distribution of workers that produced the observed reductions in segregation were remarkably similar in each of these two periods. This similarity potentially poses some problems for the future. As women continue to enter the same areas, resegregation, which we found to have relatively moderate effects in the 1970s and 1980s, becomes an increasing possibility. Continued progress towards reducing occupational segregation requires that women succeed in entering a broader range of traditionally male occupations and/or a greater flow of men into traditionally female occupations.
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16.
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The Transmission of Women's Fertility, Human Capital and Work Orientation Across Immigrant Generations
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations Albert Yung-Hsu Liu Cornell University - Cornell Higher Education Research Institute Kerry L. Papps Cornell University
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06 Oct 08
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10 Oct 08
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26 (151,483) |
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations Albert Yung-Hsu Liu Cornell University - Cornell Higher Education Research Institute Kerry L. Papps Cornell University
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06 Oct 08
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06 Oct 08
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Abstract:
Using 1995-2006 Current Population Survey and 1970-2000 Census data, we study the intergenerational transmission of fertility, human capital and work orientation of immigrants to their US-born children. We find that second-generation women's fertility and labor supply are significantly positively affected by the immigrant generation's fertility and labor supply respectively, with the effect of mother's fertility and labor supply larger than that of women from the father's source country. The second generation's education levels are also significantly positively affected by that of their parents, with a stronger effect of father's than mother's education. Second-generation women's schooling levels are negatively affected by immigrant fertility, suggesting a quality-quantity tradeoff for immigrant families. We find higher transmission rates for immigrant fertility to the second generation than we do for labor supply or education: after one generation, 40-65% of any immigrant excess fertility will remain, but only 12-18% of any immigrant annual hours shortfall and 18-36% of any immigrant educational shortfall. These results suggest a considerable amount of assimilation across generations toward native levels of schooling and labor supply, although fertility effects show more persistence.
immigration, second generation, gender, labor supply, fertility, human capital
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations Albert Yung-Hsu Liu Cornell University - Cornell Higher Education Research Institute Kerry L. Papps Cornell University
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10 Oct 08
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10 Oct 08
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5
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Abstract:
Using 1995-2006 Current Population Survey and 1970-2000 Census data, we study the intergenerational transmission of fertility, human capital and work orientation of immigrants to their US-born children. We find that second-generation women's fertility and labor supply are significantly positively affected by the immigrant generation's fertility and labor supply respectively, with the effect of mother's fertility and labor supply larger than that of women from the father's source country. The second generation's education levels are also significantly positively affected by that of their parents, with a stronger effect of father's than mother's education. Second-generation women's schooling levels are negatively affected by immigrant fertility, suggesting a quality-quantity tradeoff for immigrant families. We find higher transmission rates for immigrant fertility to the second generation than we do for labor supply or education: after one generation, 40-65% of any immigrant excess fertility will remain, but only 12-18 % of any immigrant annual hours shortfall and 18-36% of any immigrant educational shortfall. These results suggest a considerable amount of assimilation across generations toward native levels of schooling and labor supply, although fertility effects show more persistence.
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17.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations Kerry L. Papps Cornell University
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| Posted: |
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06 Oct 08
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Last Revised:
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09 Oct 08
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26 (151,483)
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1
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Abstract:
We use 1980, 1990 and 2000 Census data to study the impact of source country characteristics on the labor supply assimilation profiles of married adult immigrant women and men. Women migrating from countries where women have high relative labor force participation rates work substantially more than women coming from countries with lower relative female labor supply rates, and this gap is roughly constant with time in the United States. These differences are substantial and hold up even when we control for wage offers and family formation decisions, as well as when we control for the emigration rate from the United States to the source country. Men's labor supply assimilation profiles are unaffected by source country female labor supply, a result that suggests that the female findings reflect notions of gender roles rather than overall work orientation. Findings for another indicator of traditional gender roles, source country fertility rates, are broadly similar, with substantial and persistent negative effects of source country fertility on the labor supply of female immigrants except when we control for presence of children, in which case the negative effects only become evident after ten years in the United States.
immigration, labor supply, fertility, assimilation, gender
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18.
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Giuseppe Bertola Universita di Torino - Dipartimento di Economia Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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| Posted: |
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27 Aug 02
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Last Revised:
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18 Apr 08
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23 (158,762)
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40
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Abstract:
Using data from 17 OECD countries over the 1960-96 period and a simple theoretical framework, we investigate the impact of institutions on the relative employment of youth, women, and older individuals. Empirically, the employment prospects of these groups are especially affected by poorly performing labour markets. Theoretically, we show that labour market institutions meant to improve workers' income share imply larger disemployment effects when labour supply is more elastic. Hence, demographic groups other than prime-age males (who have little to do out of employment) should be relatively less employed in more unionized and/or regulated labour markets. We regress relative employment and unemployment outcomes on a standard set of labour market institutions, aggregate unemployment, and period and country effects. This design allows us to control for unmeasured country-specific factors that affect relative employment and unemployment. We find that the effects of wage-setting structures, labour taxes, employment protection, retirement-related institutions and unemployment insurance schemes are broadly consistent with theoretical predictions. In particular, for both men and women, more extensive involvement of unions in wage-setting significantly decreases the employment rate of young and older individuals relative to the prime-aged, with no significant effects on the relative unemployment of these groups. In contrast, a larger role for unions has insignificant effects on male-female employment differentials, but does raise female unemployment relative to male unemployment. This pattern of results suggests that union wage-setting policies price the young and elderly out of employment and drive disemployed individuals in these groups to non-labour-force (education, retirement) states. The situation for women is more complex. A possible scenario is that high union wages encourage female labour force participation, but that women who would otherwise be disemployed by high wage floors are able to find work in unregulated sectors or are absorbed by public employment.
Wage compression, unions
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19.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations Joan Y. Moriarty affiliation not provided to SSRN Andre Portela Souza University of Sao Paulo - Administracao e Contabilidade
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| Posted: |
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11 Jul 02
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Last Revised:
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19 Jul 02
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23 (158,762)
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6
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Abstract:
We use Census of Population microdata for 1980 and 1990 to examine the labor supply and wages of immigrant husbands and wives in the United States in a family context. Earlier research by Baker and Benjamin (1997) posits a family investment model in which, upon arrival, immigrant husbands invest in their human capital while immigrant wives work to provide the family with liquidity during this period. Consistent with this model, they find for Canada that immigrant wives work longer hours upon arrival than comparable natives, but, with time in Canada, they are eventually overtaken by native wives. In contrast, we find that, among immigrants to the United States, both husbands and wives work and earn less than comparable natives upon arrival, with similar shortfalls for men and women. Further, both immigrant husbands and wives have similar, positive assimilation profiles in wages and labor supply and eventually overtake both the wages and the labor supply of comparable natives.
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20.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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| Posted: |
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13 Sep 05
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Last Revised:
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13 Sep 05
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22 (161,510)
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14
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Abstract:
Using 1994-2003 CPS data, we study gender and assimilation of Mexican Americans. Source country patterns, particularly the more traditional gender division of labor in the family in Mexico, strongly influence the outcomes and behavior of Mexican immigrants. On arrival in the United States, immigrant women have a higher incidence of marriage (spouse present), higher fertility, and much lower labor supply than comparable white natives; wage differences are smaller than labor supply differences, and smaller than comparable wage gaps for men. Immigrant women's labor supply assimilates dramatically: the ceteris paribus immigrant shortfall is virtually eliminated after twenty years. While men experience moderate wage assimilation, evidence is mixed for women. Rising education in the second generation considerably reduces raw labor supply (especially for women) and wage gaps with nonhispanic whites. Female immigrants' high marriage rates assimilate towards comparable natives', but immigrant women and men remain more likely to be married even after long residence. The remaining ceteris paribus marriage gap is eliminated in the second generation. Immigrants' higher fertility does not assimilate toward the native level, and, while the size of the Mexican American-white native fertility differential declines across generations, it is not eliminated.
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21.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Jed L. DeVaro Cornell University
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| Posted: |
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14 Jul 06
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Last Revised:
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23 Aug 06
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21 (164,320)
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5
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Abstract:
Using a large sample of establishments drawn from the Multi-City Study of Urban Inequality (MCSUI) employer survey, we study gender differences in promotion rates and in the wage gains attached to promotions. Several unique features of our data distinguish our analysis from the previous literature on this topic. First, we have information on the wage increases attached to promotions, and relatively few studies on gender differences have considered promotions and wage increases together. Second, our data include job-specific worker performance ratings, allowing us to control for performance and ability more precisely than through commonly-used skill indicators such as educational attainment or tenure. Third, in addition to standard information on occupation and industry, we have data on a number of other firm characteristics, enabling us to control for these variables while still relying on a broad, representative sample, as opposed to a single firm or a similarly narrowly-defined population. Our results indicate that women have lower probabilities of promotion and expected promotion than do men but that there is essentially no gender difference in wage growth with or without promotions.
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22.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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| Posted: |
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14 Jul 00
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Last Revised:
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25 May 01
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20 (167,186)
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5
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Abstract:
In this paper we review research findings from the 1980s and early 1990s on race and gender pay gaps. In addition, we present some evidence from the Current Population Surveys (9172, 1982 and 1989) regarding the impact of shifts in the industrial composition of employment and in interindustry wage differentials on these gaps. The gender gap in pay was stable in the 1970s but fell steadily in the 1980s; the opposite patterns were observed for black-white wage differentials - a trend towards convergence in the 1970s and stability in the 1980s. Understanding these new trends comprised the unifying theme of our review. Existing studies suggest that changes in wage structure, changing relative skill levels by race and sex, and, possibly, changes in the implementation of government policies all played a role in producing the observed outcomes, although impacts were sometimes countervailing. Our own results indicate that total industry effects (representation plus coefficient effects) had little impact on the male-female pay gap during the 1970s, but accounted for a small portion of the closing of the male-female pay gap for both blacks and for whites in the 1980s. In contrast, we found no evidence that total industry effects contributed to the black-white wage trends in either period.
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23.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Adam J. Grossberg Trinity College (Hartford CT)
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| Posted: |
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17 Oct 07
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Last Revised:
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16 Jan 09
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19 (170,094)
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32
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Abstract:
No abstract is available for this paper.
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24.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations Jane Waldfogel Columbia University - School of Social Work
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| Posted: |
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30 Nov 02
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Last Revised:
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10 Oct 09
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19 (170,094)
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4
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Abstract:
This paper uses data from the 1970, 1980 and 1990 Censuses to investigate the impact of welfare benefits across Metropolitan Statistical Areas (MSAs) on the incidence of single motherhood and headship for young women. A contribution of the paper is the inclusion of both MSA fixed effects and MSA-specific time trends to account for fixed and trending unmeasured factors that could influence both welfare benefit levels and family formation. In such a model, we find no effect of welfare benefits on single motherhood for whites or blacks, and a positive effect of welfare benefits on single headship only for blacks.
Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.
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25.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations John W. Graham Independent
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| Posted: |
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04 Apr 04
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Last Revised:
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04 Apr 04
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18 (172,894)
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28
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Abstract:
No abstract is available for this paper.
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26.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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| Posted: |
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31 Mar 01
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Last Revised:
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31 Mar 01
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18 (172,894)
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25
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Abstract:
Using microdata from the 1994-6 International Adult Literacy Survey (IALS), we examine the role of cognitive skills in explaining higher wage inequality in the US. We find that while the greater dispersion of cognitive test scores in the US plays a part in explaining higher US wage inequality, higher labor market prices (i.e., higher returns to measured human capital and cognitive performance) and greater residual inequality still play important roles for both men and women. And we find that, on average, prices are quantitatively considerably more important than differences in the distribution of test scores in explaining the relatively high level of US wage inequality. This finding holds up when we examine natives only and when we correct for sample selection.
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27.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Adam J. Grossberg affiliation not provided to SSRN
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| Posted: |
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14 Apr 07
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Last Revised:
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14 Apr 07
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13 (187,291)
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Abstract:
Over the past 30 years, research on married women's labor force participation has concluded vlrtua!ly without exception that the principal source of labor force participation rate growth for married women has been the concurrent growth of women's real wages. The experience of the 1970's suggests, however, that real wage growth cannot account for the Increase In participation rates that occurred during that period. This paper argues that an Important determinant of married women's current participation decisions is the level of uncertainty associated with expectations of future wages, and that high levels of uncertainty during the 1970's may have contributed sUbstantially to the growth in participation that occurred during that time. Engle's model of autoregressive conditional heteroscedastlclty (ARCH) Is appl led to aggregate time series data covering the years 1956-1986 to measure the level of uncertainty at each point In time. Our estimates Indicate support for the basic hypothesis that the level of uncertainty is an important determinant of labor force participation decisions for married women.
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28.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Marianne A. Ferber University of Illinois at Urbana-Champaign - Department of Economics
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| Posted: |
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28 Jul 00
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Last Revised:
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28 Jul 00
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13 (187,291)
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1
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Abstract:
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29.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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| Posted: |
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19 Jun 00
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Last Revised:
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19 Jun 00
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13 (187,291)
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3
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Abstract:
The U.S labor market experienced two dramatic developments over the past twenty years: a falling male-female pay gap and a rising level of wage inequality. This paper uses Michigan Panel Study on Income Dynamics (PSID) data for 1975 and 1987 and Current Population Survey (CPS) data for 1971 and 1988 to analyze how this dramatic decline in the gender gap was achieved in the face of shifts in overall wage structure that were increasingly unfavorable to low wage workers. The decrease is traced to a rise in women's relative experience levels and occupational status, and a larger negative impact of de-unionization on male than female workers. In addition, there was a substantial decline in the 'unexplained' portion of the pay gap. These 'gender-specific' factors were more than sufficient to counterbalance changes in both measured and unmeasured prices which worked against women. Using a simply supply and demand framework, we find that the net effect of supply and demand shifts was unfavorable for women as a group: shifts in the composition of demand during this period favoring female workers were more than offset by the rising relative supply of women. However, supply and demand changes match up fairly well with observed relative changes in the gender gap among skill groups, specifically a faster closing of the gap at the bottom of the skill distribution than at the top. Moreover, our analysis of the sources of the greater progress at the bottom than at the top is consistent with the operation of demand and supply forces.
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30.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations
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| Posted: |
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07 Jan 08
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Last Revised:
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07 Jan 08
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11 (193,140)
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24
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Abstract:
No abstract is available for this paper.
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31.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations Kerry L. Papps Cornell University
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| Posted: |
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10 Oct 08
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Last Revised:
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10 Oct 08
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7 (203,520)
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1
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Abstract:
We use 1980, 1990 and 2000 Census data to study the impact of source country characteristics on the labor supply assimilation profiles of married adult immigrant women and men. Women migrating from countries where women have high relative labor force participation rates work substantially more than women coming from countries with lower relative female labor supply rates, and this gap is roughly constant with time in the United States. These differences are substantial and hold up even when we control for wage offers and family formation decisions, as well as when we control for the emigration rate from the United States to the source country. Men's labor supply assimilation profiles are unaffected by source country female labor supply, a result that suggests that the female findings reflect notions of gender roles rather than overall work orientation. Findings for another indicator of traditional gender roles, source country fertility rates, are broadly similar, with substantial and persistent negative effects of source country fertility on the labor supply of female immigrants except when we control for presence of children, in which case the negative effects only become evident after ten years in the United States.
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32.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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| Posted: |
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16 Jul 00
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Last Revised:
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16 Jul 00
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7 (203,520)
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6
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Abstract:
This paper examines gender differences in labor market outcomes for hard-to-employ youth in the US and West Germany during the 1984-91 period. We find that young, less educated American men and especially women are far less likely to be employed than their German counterparts. Moreover, less educated young women and men in the United States have lower earnings relative to more highly educated youth in their own country, and also fare much worse than less educated German youth in absolute terms, correcting for purchasing power. The relatively high employment rates of less educated German youth combined with their relatively high wages raise the question of how they are successfully absorbed into the labor market. We present evidence that the large public sector in Germany in effect functions as an employer of last resort, absorbing some otherwise unemployable low skilled youth. Our findings also suggest that the US welfare system accounts for very little of the US-German difference in employment rates.
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33.
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Francine D. Blau Cornell University - School of Industrial and Labor Relations Lawrence M. Kahn Cornell University - School of Industrial and Labor Relations
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| Posted: |
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17 Sep 97
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Last Revised:
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08 Mar 98
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0 (0)
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Abstract:
Using Michigan Panel Study of Income Dynamics data for 1979 and 1988, we analyze how a falling gender wage gap occurred despite changes in wage structure unfavorable to low wage workers. The decrease is traced to "gender-specific" factors which more than counterbalanced changes in measured and unmeasured prices working against women. Supply shifts net of demand were unfavorable for women generally and hurt high skilled more than middle and low skilled women. By analyzing wages, we find support for the notion of a gender twist in supply and demand having its largest negative effect on high skill women.
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