Shoshana Neuman and Ronald L. Oaxaca
To examine gender and ethnic wage structures and wage differentials an Israel and decompose the difference in wages into endowments, discrimination and selectivity components.
Abstract
Purpose
To examine gender and ethnic wage structures and wage differentials an Israel and decompose the difference in wages into endowments, discrimination and selectivity components.
Design/methodology/approach
Selection and wage equations are estimated for each of the population groups (Eastern women, Western women, Eastern men, Western men) separately. The wage equations are corrected for selectivity using the Heckman procedure and subsequently wage differentials are decomposed into the three components mentioned above, using four alternative decompositions suggested in 2004 by Neuman and Oaxaca.
Findings
Gender wage differentials are significantly larger than ethnic differences. Discrimination is more common between the genders. The four alternative decompositions – that are based on different assumptions and objectives – yield different results.
Research limitations/implications
Decomposition of wage differences between groups needs to take into account information on the local relevant labor market and the wage setting process.
Practical implications
Information on the relative shares of the endowments, discrimination and selectivity components leads to a more effective way to close wage gaps.
Originality/value
Employment of new proposed decomposition methodologies that might lead to practical implications to combat gender and ethnic wage gaps in Israel.
Details
Keywords
Examines gender and ethnic occupational segregation in Israel, focusing on the interaction between gender and ethnicity. Uses data from the 1983 and 1961 Population and Housing…
Abstract
Examines gender and ethnic occupational segregation in Israel, focusing on the interaction between gender and ethnicity. Uses data from the 1983 and 1961 Population and Housing Census, and two different indices to examine three issues: ethnic versus gender segregation; gender differences in ethnic occupational segregation; and ethnicity differences in gender occupational segregation. Finds that gender segregation is much higher than ethnic segregation; that, overall, women are not more ethnically segregated than men, and that there are ethnic differences in the overall gender dissimilarity indices. Focusing on the sex composition effect, finds that there is no difference in gender segregation within various ethnic groups. Suggests that only in the kibbutz are Eastern women more sexually segregated than Western women. Also investigates and presents long‐term trends between 1961 and 1983 and comparisons with the US. Explores the linkage between educational dispersion and occupational dispersion to explain the study findings. Concludes that educational disparities are responsible for differences in ethnic occupational segregation but not in gender occupational segregation. Offers demand‐side explanations.
Details
Keywords
Shoshana Neuman and Jacob Weisberg
The purpose of this paper is to investigate wage differentials and wage discrimination among 9,035 male and female Israeli managers. In our sample, female managers earn on average…
Abstract
The purpose of this paper is to investigate wage differentials and wage discrimination among 9,035 male and female Israeli managers. In our sample, female managers earn on average 64 per cent of their male counterparts. Using a statistical method originally developed by Ronald Oaxaca, we found that out of 36 per cent wage difference, 7.2 per cent were “legitimate”, stemming from differences in human capital characteristics, while 28.8 per cent were “illegitimate”, due to wage discrimination, in the form of different rates of return to the various characteristics. As wage differentials stem mainly from discrimination, affirmative action and comparable worth can serve as a partial remedy.
Details
Keywords
Solomon W. Polachek and Konstantinos Tatsiramos
How individuals allocate their time between work and leisure has important implications regarding worker well-being. For example, more time at work means a greater return to human…
Abstract
How individuals allocate their time between work and leisure has important implications regarding worker well-being. For example, more time at work means a greater return to human capital and a greater proclivity to seek more training opportunities. At the same time, hours spent at work decrease leisure and depend on one's home environment (including parental background), health, past migration, and government policies. In short, worker well-being depends on trade-offs and is influenced by public policy. These decisions entail time allocation, effort, human capital investment, health, and migration, among other choices. This volume considers worker well-being from the vantage of each of these alternatives. It contains ten chapters. The first three are on time allocation and work behavior, the next three on aspects of risk in the earnings process, the next two on aspects of migration, the next one on the impact of tax policies on poverty, and finally the last chapter on the role of labor market institutions on sectoral shifts in employment.