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Statistical Discrimination and Gender Wage Gap: A Model

Statistical Discrimination and Gender Wage Gap: A Model
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摘要 In this paper, I extend the model in Coate and Loury (CL) (1993) to show how statistical discrimination by employers can help create gender wage gap for men and women with equal earning potentials. Given that employers do not perfectly ob- serve a worker's skill type and partly rely on the average skills level of his (her) peers for inference purpose, employers' differential treatment of male and female workers can create different skill-investment incentives for them, which in turn justify em- ployers' discrimination in the first place. The second result of this paper which is not possible within the original CL framework is that I point to the possibility that there exist circumstances under which the gender wage gap can not be eliminated without the formerly advantaged sex being negatively affected. In this paper, I extend the model in Coate and Loury (CL) (1993) to show how statistical discrimination by employers can help create gender wage gap for men and women with equal earning potentials. Given that employers do not perfectly ob- serve a worker's skill type and partly rely on the average skills level of his (her) peers for inference purpose, employers' differential treatment of male and female workers can create different skill-investment incentives for them, which in turn justify em- ployers' discrimination in the first place. The second result of this paper which is not possible within the original CL framework is that I point to the possibility that there exist circumstances under which the gender wage gap can not be eliminated without the formerly advantaged sex being negatively affected.
作者 Xia Li
机构地区 School of Economics
出处 《Frontiers of Economics in China-Selected Publications from Chinese Universities》 2012年第2期286-304,共19页 中国高等学校学术文摘·经济学(英文版)
关键词 gender wage gap home production statistical discrimination gender wage gap, home production, statistical discrimination
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参考文献8

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