Search Results

Title: The Gender Pay Gap, Fringe Benefits, and Occupational Crowding
Resulting in 1 citation.
1. Laughlin, Teresa Laine Clarke
Solberg, Eric J.
The Gender Pay Gap, Fringe Benefits, and Occupational Crowding
Working Paper, California State University - Fullerton, April 1994
Cohort(s): NLSY79
Publisher: Author
Keyword(s): Benefits, Fringe; Discrimination, Employer; Wage Gap; Wage Rates

Permission to reprint the abstract has not been received from the publisher.

Canonical correlation analysis is used to construct an index of total compensation for work that includes measures of the wage rate and fringe benefits using the 1991 NLSY. Earnings equations are estimated for seven occupations using both the logarithm of the wage rate and the index of total compensation. The results indicate that the pay gap is much smaller when the index of total compensation is used. An estimated gender coefficient is statistically significant for the traditional earnings equation in all occupations except for the most female dominated occupation. However, when the index is used as the dependent variable, the gender coefficient is statistically significant in only one occupation which contains relatively heterogeneous jobs. Regressions by occupation for male and females are used to test the equality of structures between models separated by gender, and the gap is decomposed into a part due to differences in traits and a residual part The results are consistent with a hypothesis that occupational assignment is the primary determinant of the pay gap, and this is consistent with the "crowding" explanation of the gender gap. The preponderance of evidence is against the employer "taste" discrimination explanation of the pay gap.
Bibliography Citation
Laughlin, Teresa Laine Clarke and Eric J. Solberg. "The Gender Pay Gap, Fringe Benefits, and Occupational Crowding." Working Paper, California State University - Fullerton, April 1994.