Wage Discrimination Measurement: In Defense of a Simple but Informative Statistical Tool
Michel Le Breton
University of Toulouse I - GREMAQ-IDEI
Università degli Studi di Milano-Bicocca - Center for Interdisciplinary Studies in Economics, Psychology & Social Sciences (CISEPS); Università degli Studi di Milano-Bicocca - Department of Economics, Quantitative Methods and Business Strategies (DEMS)
University of Verona - Department of Economics; Università degli Studi di Milano-Bicocca - Department of Economics, Quantitative Methods and Business Strategies (DEMS)
June 5, 2008
Econpubblica Working Paper No. 128
We examine several functional and numerical measures of wage discrimination in the spirit of the Lorenz curve. The First Order discrimination curve is based on the comparison of the wage CDF of two subpopulations. Three different Second Order discrimination curves are derived to refine the first one by taking into account inequality and/or efficiency in the wage distribution across the two groups. We explore the relationship between these curves and some popular discrimination indices. We use standard economic size distributions to recover closed forms of discrimination curves. The main results are illustrated on PSID data, year 2005.
Number of Pages in PDF File: 33
Keywords: Discrimination measurement, Gastwirth index, Statistical Size Distributions
JEL Classification: J71, D31, D63, C16
Date posted: February 5, 2009
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