By William M. Rodgers III
Discrimination's dynamic nature implies that no unmarried concept, technique, information or learn might be relied upon to evaluate its significance, factors, or treatments. regardless of a few earnings in our figuring out, those stay energetic parts of dialogue between researchers, practitioners and policymakers. The especially commissioned papers during this quantity, all via exotic participants, current the entire variety of matters relating to this complicated and tough challenge.
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Additional resources for Handbook on the Economics of Discrimination (Elgar Original Reference)
The first entails constructing the predicted variable aˆ since the values for aˆ are not actually observed. To estimate aˆ, one predicts occupational attainment for men using a multinomial logit model of occupational attainment in which the probability that an individual obtains an occupation j depends on a set of labor supply and demand variables. The estimated parameters from the male sample are then combined with the female characteristics in order to predict the female occupational distribution.
What is absent from the residual wage approach, and in our view leaves the approach vulnerable to being regarded as uninformative regarding discrimination, is any directly observable measure of productivity with which to adjust differentials in wages in trying to infer whether a particular group suffers from discrimination. The ideal solution would be individual-level productivity data that can be compared with wages. Any of the variables that differ across groups and are unobserved in the residual wage regression approach should affect wages and productivity equally, and hence not bias the test.
Let Wmt and Wft represent overall mean wages for male and female workers at time t, and let wmjt and wfjt represent the corresponding mean wages within occupation j. 18) where amjt is the proportion of total men’s employment in occupation j and afjt is the proportion of total women’s employment in occupation j. 18). This term represents the female overall average wage that would be observed if women received the same average wage within each occupation as men. The manipulation produces the following expression for the occupational decomposition: Wmt – Wft = ∑j(amjt – afjt)wmjt + ∑jafjt(wmjt – wfjt).
Handbook on the Economics of Discrimination (Elgar Original Reference) by William M. Rodgers III