scholarly journals Social Connections and Racial Wage Inequality

2020 ◽  
Author(s):  
Nicholas H Tenev
Keyword(s):  
Wage Inequality ◽  
Job Search ◽  
Wage Gap ◽  
Social Connections ◽  
Search Model ◽  
Black Workers ◽  
The Us ◽  
Racial Wage Gap ◽  
The Difference ◽  
Individual Human

How much of the wage gap between black workers and others in the US owes to differences in jobs found through social connections? Panel data from the NLSY79 are used to estimate a job search model in which individual human capital is distinguished from social capital by comparing the wages and frequency of jobs found directly with those of jobs found through friends. Jobs found through friends tend to pay more, but this premium is lower for black workers; the difference can account for 10% of the racial wage gap.

11. The Gender Wage Gap of Recent University Graduates

2018 ◽  
Author(s):  
Annabel Thornton
Keyword(s):  
Job Search ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Search Model ◽  
University Graduates ◽  
Men And Women ◽  
Impact Risk ◽  
The Difference ◽  
The Impact ◽  
A Current

The purpose of this research was to question whether the behavioural tendencies of men and women could help explain the gender wage gap of recent university graduates. It was conducted after discovering that a 2013 study found that even once accounting for observable characteristics such as age, experience, industry, occupation, and field of study, female graduates were still earning 6-14% less than their male counterparts. Using the willingness of a graduate to gamble a current job offer for a potentially better job offer in the future as a proxy for risk, this research investigates the impact risk preferences have on the gender wage gap. More specifically, it attempts to calculate how much of the observed wage gap can be attributed to the greater risk aversion of women.  Our data was from the National Longitudinal Survey of Youth 1997. Using a McCall Job Search model and an MLE, we found that women take approximately 4.5 fewer weeks to accept a job, accept significantly lower starting salaries, and are systematically offered lower salaries than their male counterparts. Furthermore, we found that women have an Arrow-Pratt coefficient almost 1.25 times that of men. These results suggest that women are more willing to accept lower wage positions offered to them today because they are less willing to gamble that a higher wage position will come along tomorrow. Moreover, they propose that this female unwillingness to gamble can explain up to a quarter of the difference in the wages accepted by men and women. 

scholarly journals Quantifying the Contribution of Search to Wage Inequality

2014 ◽  
Vol 6 (1) ◽  
pp. 134-161 ◽  
Author(s):  
Volker Tjaden ◽  
Felix Wellschmied
Keyword(s):  
Labor Market ◽  
Wage Inequality ◽  
Job Search ◽  
Search Model ◽  
Search Frictions ◽  
Job Transitions ◽  
The Difference

We empirically establish that one-third of job transitions leads to wage losses. Using a quantitative on-the-job search model, we find that 60 percent of them are movements down the job ladder. Accounting for them, our baseline calibration matches the large residual wage inequality in US data while attributing only 13.7 percent of overall wage inequality to the presence of search frictions in the labor market. We can trace the difference between ours and previous much higher estimates to our explicit modeling of nonvalue improving job-to-job transitions. (JEL J24, J31, J64)

scholarly journals DIFFERENCES IN DECLINE: QUANTILE REGRESSION OF MALE–FEMALE EARNINGS DIFFERENTIAL IN MALAYSIA

2015 ◽  
Vol 60 (04) ◽  
pp. 1550054 ◽  
Author(s):  
SIEW CHING GOY ◽  
GERAINT JOHNES
Keyword(s):  
Quantile Regression ◽  
Wage Inequality ◽  
Gender Wage Gap ◽  
Wage Gap ◽  
Wage Distribution ◽  
Western Society ◽  
Floor Effect ◽  
Earnings Differential ◽  
Gender Earnings Gap ◽  
The Difference

Semiparametric estimation has gained significant attention in the study of wage inequality between men and women in recent years. By extending the wage gap at the mean towards the entire wage distribution using quantile regression, it enables researchers to ascertain the direction and the proportions of differences in characteristics and returns to these characteristics at different parts of the wage distribution. This line of research has been prominent in western society but has not yet been explored in the context of the Malaysian labor market. To fill the gap, this paper examines the gender earnings gap in Malaysia between 1994 and 2004 using Malaysia Population and Family Survey data. The gender earnings differential, as measured by the log percentage point is 53% in 1994. The difference reduces to 45% for a restricted sample and 42% for the unrestricted sample in 2004. However, it was found that the gender wage gap reduces as we move up the wage distribution. This suggests that women suffer from a sticky floor effect, i.e., the gender wage gap is bigger at the bottom of distribution. More importantly, the observed gender wage differentials do not reflect differences in the productive characteristics of the workers. In fact, it accounts for very little, if any, of the gap in Malaysia. However, the extent of the price effect is larger at the bottom end of the distribution than at the top.

Does the Black/White Wage Gap Widen During Recessions?

2020 ◽  
pp. 073088842096814
Author(s):  
Shinjinee Chattopadhyay ◽  
Emily C. Bianchi
Keyword(s):  
Wage Gap ◽  
Panel Study ◽  
Black Workers ◽  
Negative Attitudes ◽  
Black And White ◽  
Time Period ◽  
Racial Wage Gap ◽  
Black Populations ◽  
Hourly Workers ◽  
White Workers

Researchers have long documented a significant wage gap between White and Black workers, at least some of which is attributable to discrimination. Drawing on research suggesting that discrimination increases during recessions, we test whether the racial wage gap expands during economic downturns. Using longitudinal wage data from the Panel Study of Income Dynamics over a 40-year time period (N = 18,954), we find that the wage gap between Black and White workers increases with the unemployment rate. Moreover, we find that the cyclical wage gap is more pronounced in states in which Whites hold more negative attitudes about Blacks and in states with larger Black populations, suggesting that the racial wage gap expansion during recessions is at least partially driven by discrimination. Finally, we find evidence for at least two mechanisms by which the wage gap expands during recessions. First, we find that Black workers are more likely to lose their jobs during downturns and earn lower wages upon reemployment than comparable Whites. Second, we find that Black hourly workers are slightly more likely to have their hours reduced during recessions than White hourly workers, thereby resulting in lower earnings. These findings suggest that the racial wage gap widens during recessions and that discrimination accounts for at least some of this expansion.

Parental leave length, social norms, and female labor market re-entry frictions

2018 ◽  
Vol 39 (4) ◽  
pp. 600-620 ◽  
Author(s):  
Vojtech Bartoš ◽  
Barbara Pertold-Gebicka
Keyword(s):  
Labor Market ◽  
Social Norms ◽  
Job Search ◽  
Social Norm ◽  
Parental Leave ◽  
Human Resource Managers ◽  
Content Type ◽  
Job Applicant ◽  
Employment Gaps ◽  
The Difference

Purpose The purpose of this paper is to identify the role of employers in creating employment gaps among women returning to the labor market after parental leaves of different durations. Design/methodology/approach The authors use a controlled correspondence field experiment that orthogonally manipulates parental leave length and the quality of fictitious female job candidates. The experiment is complemented with a survey among human resource managers. Findings High-quality candidates receive more interview invitations when applying after a short parental leave, while low-quality (LQ) candidates receive more interview invitations when applying after a typical three years long parental leave. Survey results suggest that the difference in invitations between short and typical leave treatments is driven by a social norm that mothers should stay home with children younger than three. Productivity gains from employing a LQ job applicant with a shorter career break might not be high enough to outweigh the adverse social norm effect. Social implications The presented results point toward the strong effect of prevailing social norms on job search prospects of women returning to the labor market after parental leave. Originality/value A correspondence experiment has not been used before to study the relationship between time spent on leave and the labor market prospects of mothers. It also extends research on social norms to the domain of hiring decisions.

An Empirical Equilibrium Job Search Model With Search on the Job and Heterogeneous Workers and Firms

1999 ◽  
Vol 40 (4) ◽  
pp. 1039-1074 ◽  
Author(s):  
Christian Bontemps ◽  
Jean-Marc Robin ◽  
Gerard J. Van den Berg
Keyword(s):  
Job Search ◽  
Search Model

scholarly journals Searching For Better Prospects: Endogenizing Falling Job Tenure and Private Pension Coverage

2006 ◽  
Vol 6 (1) ◽  
Author(s):  
Leora Friedberg ◽  
Michael T Owyang ◽  
Tara M Sinclair
Keyword(s):  
Job Search ◽  
Search Costs ◽  
Private Pension ◽  
Search Model ◽  
Defined Benefit ◽  
Job Tenure ◽  
Relative Wages ◽  
Pension Coverage ◽  
New Evidence ◽  
General Conditions

Abstract Recent declines in job tenure have coincided with a shift away from traditional defined benefit (DB) pensions, which reward long tenure. New evidence also points to an increase in job-to-job movements by workers, and we document gains in relative wages of job-to-job movers over a similar period. We develop a search model in which firms may offer tenure-based contracts like DB pensions to reduce the incidence of costly on-the-job search by workers. Either reduced search costs or an increase in the probability of job matches can, under fairly general conditions, lower the value of deterring search and the use of DB pensions.

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