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Trends in the Australian Gender Wage Differential over the 1980s: Some Evidence on the Effectiveness of Legislative Reform

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  • Michael P. Kidd
  • Xin Meng

Abstract

The article examines the legislative reforms incorporating the Sex Discrimination Act and the Affirmative Action Act introduced during the 1980s. We utilise the Australian Bureau of Statistics Income Distribution Surveys 1981–82 and 1989–90 to reflect pre‐ and post‐legislative reform. The article adopts the Brown, Moon and Zoloth (1980) methodology which treats both the wage and occupational status of the individual as endogenously determined. In the current context this is a particularly flexible framework allowing one to capture both the direct and indirect effects of the legislative reforms. The indirect effect refers to the narrowing of the gender wage gap associated with legislative manipulation of the male‐female occupational distributions. The results contrast the slow convergence in the gender wage gap during the 1980s with the much faster pace of the 1970s. The article concludes that despite the focus of the 1980s legislation on employment equity, changes in the male‐female occupational distribution over the period are small and the associated impact on gender wage convergence is also small.

Suggested Citation

  • Michael P. Kidd & Xin Meng, 1997. "Trends in the Australian Gender Wage Differential over the 1980s: Some Evidence on the Effectiveness of Legislative Reform," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 30(1), pages 31-44, March.
    • Handle: RePEc:bla:ausecr:v:30:y:1997:i:1:p:31-44
    DOI: 10.1111/1467-8462.00003
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    Cited by:

    1. Anh T. Le & Paul W. Miller, 2001. "The Persistence of the Female Wage Disadvantage," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 34(1), pages 33-52, March.
    2. Meng, Xin & Kidd, Michael P., 1997. "Labor Market Reform and the Changing Structure of Wage Determination in China's State Sector during the 1980s," Journal of Comparative Economics, Elsevier, vol. 25(3), pages 403-421, December.
    3. Gerard Lind & Rebecca Colquhoun, 2021. "Analysis of gender segregation within detailed occupations and industries in Australia," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 24(1), pages 47-69.
    4. Jeff Borland & Michael Coelli, 2016. "Labour Market Inequality in Australia," The Economic Record, The Economic Society of Australia, vol. 92(299), pages 517-547, December.
    5. Anh T. Le & Paul W. Miller & Wendy S. Slutske & Nicholas G. Martin, 2014. "Attitudes Toward Economic Risk and Occupational Choice," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 53(4), pages 568-592, October.
    6. Derby Voon & Paul W. Miller, 2005. "Undereducation and Overeducation in the Australian Labour Market," The Economic Record, The Economic Society of Australia, vol. 81(s1), pages 22-33, August.
    7. Mark Wooden, 1999. "Gender Pay Equity and Comparable Worth in Australia: A Reassessment," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(2), pages 157-171, June.
    8. Paul W. Miller & Yew Liang Lee, 2004. "Occupational Segregation on the Basis of Gender: the Role of Entry-level Jobs," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(3), pages 355-374, September.
    9. Elisa‐Rose Birch, 2005. "Studies of the Labour Supply of Australian Women: What Have We Learned?," The Economic Record, The Economic Society of Australia, vol. 81(252), pages 65-84, March.
    10. Cynthia J. Brown & José A. Pagán & Eduardo Rodríguez-Oreggia, 1999. "Occupational Attainment and Gender Earnings Differentials in Mexico," ILR Review, Cornell University, ILR School, vol. 53(1), pages 123-135, October.

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