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Intrafirm Mobility and Sex Differences in Pay

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  • Michael Ransom
  • Ronald L. Oaxaca

Abstract

The authors analyze eleven years of employment data for a regional grocery store chain in the United States that faced a class-action lawsuit over gender discrimination. The data include all employees' job titles, wage rates, and earnings, allowing an examination of initial job assignments, mobility between departments, and mobility into supervisory and management positions. An analysis that models the flows of individuals between different departments and jobs within the firm as a Markov process shows a pattern of intrafirm mobility and initial job assignment that generally penalized women, even when the analysis accounts for individuals' characteristics. Although the court-mandated affirmative action remedies were not formally implemented until after the period of the study, there were clear signs of relative improvement in the economic status of the firm's female employees as a result of the filing of the lawsuit and subsequent trial.

Suggested Citation

  • Michael Ransom & Ronald L. Oaxaca, 2005. "Intrafirm Mobility and Sex Differences in Pay," ILR Review, Cornell University, ILR School, vol. 58(2), pages 219-237, January.
    • Handle: RePEc:sae:ilrrev:v:58:y:2005:i:2:p:219-237
    DOI: 10.1177/001979390505800203
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    References listed on IDEAS

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    1. Gary Solon & Warren Whatley & Ann Huff Stevens, 1997. "Wage Changes and Intrafirm Job Mobility over the Business Cycle: Two Case Studies," ILR Review, Cornell University, ILR School, vol. 50(3), pages 402-415, April.
    2. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    3. Kimberly Bayard & Judith Hellerstein & David Neumark & Kenneth Troske, 2003. "New Evidence on Sex Segregation and Sex Differences in Wages from Matched Employee-Employer Data," Journal of Labor Economics, University of Chicago Press, vol. 21(4), pages 887-922, October.
    4. Ronald Oaxaca & Michael Ransom, 2003. "Using Econometric Models for Intrafirm Equity Salary Adjustments," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 1(3), pages 221-249, December.
    5. Weiss, Andrew, 1984. "Determinants of Quit Behavior," Journal of Labor Economics, University of Chicago Press, vol. 2(3), pages 371-387, July.
    6. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
    7. Baldwin, Marjorie L & Butler, Richard J & Johnson, William G, 2001. "A Hierarchical Theory of Occupational Segregation and Wage Discrimination," Economic Inquiry, Western Economic Association International, vol. 39(1), pages 94-110, January.
    8. Neuman, Shoshana & Oaxaca, Ronald L, 1998. "Estimating Labour Market Discrimination with Selectivity Corrected Wage Equations: Methodological Considerations and an Illustration from Israel," CEPR Discussion Papers 1915, C.E.P.R. Discussion Papers.
    9. Shoshana Neuman & Ronald L. Oaxaca, 2003. "Gender vs Ethnic Wage Differentials Among Professionals: Evidence from Israel," Annals of Economics and Statistics, GENES, issue 71-72, pages 245-265.
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    More about this item

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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