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Unexplored Dimensions of Discrimination$
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Tito Boeri, Eleonora Patacchini, and Giovanni Peri

Print publication date: 2015

Print ISBN-13: 9780198729853

Published to Oxford Scholarship Online: May 2015

DOI: 10.1093/acprof:oso/9780198729853.001.0001

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Gender Gaps in Wages and Employment: The Role of Employers’ Prejudice

Gender Gaps in Wages and Employment: The Role of Employers’ Prejudice

Chapter:
(p.23) 2 Gender Gaps in Wages and Employment: The Role of Employers’ Prejudice
Source:
Unexplored Dimensions of Discrimination
Author(s):

Luca Flabbi

Mauricio Tejada

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198729853.003.0003

This chapter develops a structural model to separate the part of the wage difference between men and women in the US labor market that is due to productivity and the part that is due to prejudice and/or discrimination. It uses very detailed data on US employer and employees to estimate the model. Interestingly, it finds that for all education groups prejudice explains a substantial part of the gender gap, although that gap decreased between 1995 and 2005. As of 2005 the major gender differential in wages is explained by differences in productivity, except for the group of Masters and PhDs in which, surprisingly, prejudice plays a larger role in 2005 than earlier.

Keywords:   prejudice, gender wage gap, US labor market, structural model

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