Group Versus Individual Discrimination Among Young Workers: A Distributional Approach

University of Venice Economics Working Paper No. 05-02

27 Pages Posted: 10 Jun 2005

See all articles by Donata Favaro

Donata Favaro

Department of Economics M.Fanno - University of Padova (Italy); Centre for Household, Income, Labour and Demographic Economics (CHILD)

Stefano Magrini

Ca Foscari University of Venice - Dipartimento di Economia

Date Written: February 2005

Abstract

We evaluate the gender wage gap and the unexplained gender wage differential for workers 15-29 year old during the period 1990-1997, using a particularly rich set of data from the Italian Social Security System covering all individuals in the labour markets of two Italian provinces.

We estimate separate earnings functions for men and women correcting for endogeneity of education and we evaluate gender discrimination by studying the entire distribution of the unexplained wage gap as suggested by Jenkins (1994). We evaluate discrimination against females by means of bivariate density functions. This innovation makes it possible to condition the density distribution on the marginal distribution of any characteristic and to evaluate more precisely the existence of group and individual discrimination. Our analysis suggests that discrimination is not evenly distributed among women, in relation to their characteristics; in particular, there is evidence of lower discrimination against highly educated females. Moreover in 1997, compared to 1990, discrimination increased in a appreciable way, affecting human capital rich females more significantly.

While our work is based in a very local context the richness of the data and the methodological innovation give the results a wider application.

Keywords: Wage differentials, wage discrimination, gender

JEL Classification: J310

Suggested Citation

Favaro, Donata and Magrini, Stefano, Group Versus Individual Discrimination Among Young Workers: A Distributional Approach (February 2005). University of Venice Economics Working Paper No. 05-02, Available at SSRN: https://ssrn.com/abstract=739564 or http://dx.doi.org/10.2139/ssrn.739564

Donata Favaro (Contact Author)

Department of Economics M.Fanno - University of Padova (Italy) ( email )

via Del Santo 33
Padova, 35123
Italy

Centre for Household, Income, Labour and Demographic Economics (CHILD) ( email )

Turin, TO
Italy

Stefano Magrini

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy

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