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Reference of Wage Difference

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Summary of Wage Differentials
Wage differential is a term used in labor economics to analyze the relation between the wage rate and the unpleasantness, risk, or other undesirable attributes of a particular job. Pay and earnings levels differ greatly between the main regions of the United Kingdom. There are also wide variations in average pay levels within regions - in particular within the inner cities. We are planning to the extent which non-discriminatory factors can explain observed wage gaps between racial and ethnic minorities and whites, and between women and men.
1. Male-Female Wage Differentials in Urban Labor Markets.
Ronald Oaxaca
International Economic Review http://www.jstor.org/stable/2525981?seq=1#page_scan_tab_contents Vol. 14, No. 3 (Oct., 1973), pp. 693-709
Published by: Wiley for the Economics Department of the University of Pennsylvania and Institute of Social and Economic Research -- Osaka University
Stable URL: http://www.jstor.org/stable/2525981
Page Count: 17
In this article they are talking how men and women make different wages doing the same job. The ratio went from .48 to .51. On average men make $5000 more than women.
2. On discrimination and the decomposition of wage differentials.
Correspondence to: Ronald L. Oaxaca, Department of Economics, McClelland Hall, University of Arizona, Tucson, AZ 85721, USA. http://www.sciencedirect.com/science/article/pii/0304407694900744 In this paper they examine four alternative methods for estimating the extent of labor market discrimination. All of the methods involve the decomposition of gross (unadjusted) wage differentials into discrimination and productivity components. These methods can be expressed in a single generalized form and are shown to differ with respect to the implicitly assumed nondiscriminatory, competitive wage structure. Equivalencies among the methods are shown to exist under certain restrictive conditions. These methods are applied to micro data from the U.S. Current Population Survey and from a specific U.S. firm.
3. Wages, Experience and Seniority.
CHRISTIAN DUSTMANN and COSTAS MEGHIR
University College London, Institute for Fiscal Studies and CEPR
First version received January 2001; final version accepted November 2003 (Eds.) http://www.ucl.ac.uk/~uctpb21/Cpapers/WagesExpSen.pdf In this paper they study the sources of wage growth. They identify the contribution to such growth of general, sector specific and firm specific human capital. Their results are interpretable within the context of a model where the returns to human capital may be heterogeneous and where firms may offer different combinations of entry level wages and firm specific human capital development. They allow for the possibility that wages are match specific and that workers move jobs as a result of identifying a better match. To estimate the average returns to experience, sector tenure and firm specific tenure within their context, they develop an identification strategy which relies on the use of firm closures. Their data source is a new and unique administrative data-set for Germany that includes complete work histories as well as individual characteristics. They find positive returns to experience and firm tenure for skilled workers. The returns to experience for unskilled workers are small and insignificant after 2 years of experience. Their returns to sector tenure are also zero. However, their returns to firm tenure are substantial.

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