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Sex, Wages, and Productivity: An Empirical Analysis of Israeli Firm-Level Data

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  • Hellerstein, Judith K
  • Neumark, David

Abstract

Sex discrimination in labor markets may generate a wage gap between men and women that exceeds any gap in marginal productivity. We test for this type of discrimination using unique firm-level data on manufacturing firms in Israel. There is a statistically significant negative association between wages and the proportion of a firm's workforce that is female. However, there is also a statistically significant negative association between marginal productivity and the proportion of females. The difference between the wage and productivity gaps is small relative to wage-regression estimates of wage discrimination, and is not statistically significant, which is most consistent with no discrimination. Copyright 1999 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.

Suggested Citation

  • Hellerstein, Judith K & Neumark, David, 1999. "Sex, Wages, and Productivity: An Empirical Analysis of Israeli Firm-Level Data," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 40(1), pages 95-123, February.
    • Handle: RePEc:ier:iecrev:v:40:y:1999:i:1:p:95-123
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    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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