Movin' on Up: Hierarchical Occupational Segmentation and Gender Wage Gaps

54 Pages Posted: 17 Nov 2012

See all articles by Dina Shatnawi

Dina Shatnawi

Government of the United States of America - Naval Postgraduate School

Ronald L. Oaxaca

University of Arizona - Department of Economics; IZA Institute of Labor Economics

Michael R. Ransom

Brigham Young University - Department of Economics; IZA Institute of Labor Economics

Abstract

Our study evaluates and extends existing wage decomposition methodologies that seek to measure the contributions of endowments, pure wage discrimination, and job segregation. Of particular interest is the model of hierarchical segregation in Baldwin, Butler, and Johnson (2001). We employ data from a regional supermarket that faced a Title VII class-action lawsuit to examine how standard wage specifications integrated with a model of hierarchical segregation might perform in wage decompositions. Our results show that a common misspecification of the wage structure leads to false inferences about the presence of pure wage discrimination. We demonstrate the generalizability of our methodology using CPS data.

Keywords: gender discrimination, job segregation, wage decompositions

JEL Classification: J71

Suggested Citation

Shatnawi, Dina and Oaxaca, Ronald L. and Ransom, Michael R., Movin' on Up: Hierarchical Occupational Segmentation and Gender Wage Gaps. IZA Discussion Paper No. 7001. Available at SSRN: https://ssrn.com/abstract=2177199

Dina Shatnawi (Contact Author)

Government of the United States of America - Naval Postgraduate School ( email )

1 University Circle
Monterey, CA 93943-5001
United States
831-656-2755 (Phone)

Ronald L. Oaxaca

University of Arizona - Department of Economics ( email )

McClelland Hall
Tucson, AZ 85721-0108
United States
520-621-4135 (Phone)
520-621-8450 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Michael R. Ransom

Brigham Young University - Department of Economics ( email )

130 Faculty Office Bldg.
Provo, UT 84602-2363
United States
801-422-4736 (Phone)
801-422-0194 (Fax)

HOME PAGE: http://fhss.byu.edu/econ/ransom/

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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