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Technological Change and Gender Wage Gaps in the U.S. Service Industry

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  • Simona Lup Tick
  • Ronald L. Oaxaca

Abstract

This paper investigates the relation between advances in technology and trends in the gender wage gaps in the US service industry. Using quarterly US Current Population Survey data on employment and wages by four major occupations between 1979 and 2001, the paper estimates a constant elasticity of substitution production function (CES) that incorporates male and female labor inputs, a non-labor input and a productivity parameter function that captures non-neutral technological change. The model is estimated by two stage least squares (2SLS) with cross-equation restrictions. The results reveal a narrowing effect of technological change on the female-male wages for the highest skill level occupation (managerial, professional occupations). This effect is robust to controlling for the unexplained gender wage gap and to using direct measures of technological change. The effect of technological change on the gender wage gaps for the other skill levels tends to diminish or disappear altogether once changes in unexplained gender wage gaps are adjusted for. The results highlight the importance of considering the unexplained gender wage gaps in examining the effect of technological change on the gender wage gaps.

Suggested Citation

  • Simona Lup Tick & Ronald L. Oaxaca, 2010. "Technological Change and Gender Wage Gaps in the U.S. Service Industry," Annals of Economics and Statistics, GENES, issue 99-100, pages 47-65.
    • Handle: RePEc:adr:anecst:y:2010:i:99-100:p:47-65
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    Cited by:

    1. Arnaud Dupuy & Todd Sorensen, 2014. "On Input Market Frictions and Estimation of Factors' Demand," Southern Economic Journal, John Wiley & Sons, vol. 80(3), pages 772-781, January.
    2. Bhalotra, Sonia & Fernandez, Manuel & Wang, Fan, 2022. "The Distribution of the Gender Wage Gap: An Equilibrium Model," CEPR Discussion Papers 17253, C.E.P.R. Discussion Papers.
    3. Flávio Kauê Fiuza-Moura & Katy Maia & Solange Cassia Inforzato de Souza & Magno Rogério Gomes & Paulo Reis Mourão, 2019. "The luck of being of the right gender and color: a detailed discussion about the wage gaps in the Brazilian manufacturing industry," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(3), pages 1275-1300, May.
    4. Bhalotra, Sonia R & Fernández, Manuel & Wang, Fan, 2022. "The distribution of the gender wage gap : An equilibrium model," CAGE Online Working Paper Series 614, Competitive Advantage in the Global Economy (CAGE).
    5. Abdulla, Kanat & Serikbayeva, Balzhan, 2024. "Gender gaps in labor market outcomes in a resource-dependent country," Resources Policy, Elsevier, vol. 90(C).
    6. Bhalotra, Sonia & Fernandez Sierra, Manuel, 2018. "The distribution of the gender wage gap," ISER Working Paper Series 2018-10, Institute for Social and Economic Research.

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