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Gender Segregation by Occupation in the U.S.

Paige Hehl , UW Eau Claire Faculty Mentor: Dr. David Schaffer. Gender Segregation by Occupation in the U.S. . Previous Research.

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Gender Segregation by Occupation in the U.S.

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  1. Paige Hehl, UW Eau Claire Faculty Mentor: Dr. David Schaffer Gender Segregation by Occupation in the U.S.

  2. Previous Research Some economic researchers have concluded that gender discrimination in the U.S. is essentially gone. Schaffer’s previous research suggested otherwise. Our research using a different set of statistical techniques and an enormous database supports the idea of continuing discrimination against women in the labor market.

  3. Data • Data was obtained from the Current Population Survey (CPS) for the years 1971-2006. (http://www.census.gov/cps/) • We have approximately 60,000 observations for each year. • Used Stata 10 & 11

  4. Oaxaca Decomposition • Regression of wage rate onto years of schooling and potential experience: Differential due to differences in human capital Differential due to Discrimination

  5. Method 1: Extending Oaxaca • Decomposing further to obtain differential due to gender segregation • We used three types of occupations • A: Occupations with less than 30% female workers • B: Occupations with 30-70% female workers • C: Occupations with more than 70% female • Actual wage gap calculated as A∆= ∑[(NiM/NM)lnWiM – (NiF/NF)lnWiF]

  6. A∆= H+D+S • H= differential due to differences in human capital • D= differential due to discrimination • S= differential due to gender segregation H= ∑ βiM(XiM – XiF) (Ni/N) D= ∑(βiM-βiF)XiF (Ni/N) S= ∑ {[(NiM/NM)-(Ni/N)]lnWiM – [(NiF/NF)-(Ni/N)]lnWiF} Need program for more categories

  7. Results from Decomposing • 1971 • A∆= 0.546149 (actual logwage gap) • H= 0.017139 • D= 0.453878 • S= 0.075132 S is about 13.8% of A∆ • 2002 • A∆= 0.281517 (actual logwage gap) • H= -0.008705 • D= 0.225145 • S= 0.06507 S is about 23.1% of A∆

  8. Method 2:Regression Analysis with Additional Variables • Regressed certain variables against the natural log of wages • Used years of education, potential experience, fraction-female, average occupation education, and others • Restricted the wages between $2 - $200 (an hour) to eliminate some of the variance • Used weighted averages

  9. Additional Variables • 500 occupation categories determined by the Census Bureau • Fraction-female (within each occupation) • Average education (within each occupation) Fraction-Female Coefficients

  10. Interpretations • Types of Discrimination • Pure Discrimination • Gender Segregation Penalty • It has always been the case that wages decrease as you move to a more female job • The size of the wage gap has increased over time • Jobs have become less segregated, but the wage penalty has gotten larger for being in the more female segregated jobs.

  11. Citations • Borjas, George. Labor Economics. 5th. New York, NY: McGraw-Hill/Irwin, 2008. Print. • Fluckiger, Yves, and Jacques Silber. The Measurement of Segregation in the Labor Force. Germany: Physica-Verlag Heidelberg, 1999. Print.

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