Author:
Idson Todd L.,Price Hollis F.
Abstract
This study investigates the source of wage differentials between blacks, Hispanics, and whites, and between women and men, in metropolitan Dade County (Florida) government, and draws out the implications of this analysis for affirmative action planning. Our distinctive finding is that the primary factor causing observed wage differentials by ethnicity is the sorting of people across occupational categories. Wage decompositions reveal that for males, 70 percent, 88 percent, and 47 percent of the wage gaps between white and black, white and Hispanic, and Hispanic and black, respectively, are attributable to occupation. For females, the corresponding figures are 56 percent, 58 percent, and 51 percent. When comparing men and women of the same ethnic group, occupational employment patterns are found to be an important factor accounting for lower average female wages, yet within major occupational groups women seem to be receiving higher wages (on average) than men.
Subject
Economics and Econometrics,Cultural Studies
Reference16 articles.
1. For exceptions, see G. Borjas, “Wage Determination in the Federal Government: The Role of Constituents and Bureaucracy,”Journal of Political Economy vol. 88, no. 6 (December 1980);
2. M. W. Reder, “The Theory of Employment and Wages in the Public Sector,” inLabor in the Public and Nonprofit Sectors, D. S. Hammermesh (ed.), (Princeton, NJ: Princeton University Press, 1975); S. P. Smith, “Government Wage Differentials by Sex,”Journal of Human Resources vol. 11, no. 2 (1976); and Sharon Smith,Equal Pay in the Public Sector: Fact or Fantasy (Princeton University, Industrial Relations Section, 1977).
3. See G. Borjas, “The Earnings of Male Hispanic Immigrants in the United States,”Industrial and Labor Relations Review (April 1982); and, “Immigrants, Minorities, and Labor Market Competition,”Industrial and Labor Relations Review (April 1987).
4. For discussions of this methodology see A. S. Blinder, “Wage Discrimination—Reduced Form and Structural Estimates,”Journal of Human Resources (Fall 1973);
5. R. Oaxaca, “Male-Female Wage Differentials in Urban Labor Markets,”International Economic Review (October 1973);
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