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The role of supervisors in the determination of wages and wage gaps

Author

Listed:
  • J. D. Pitts
  • S. Orozco-Aleman
  • J. Rezek

Abstract

This article considers labour market discrimination by supervisors as a potential contributor to racial and gender wage gaps. Empirical analysis reveals evidence that all workers, except Hispanic males, earn significantly higher hourly wages when working for a supervisor of the same race and sex as themselves. Furthermore, the results suggest that sex has a larger impact on wages than race for workers with white supervisors, while race has a larger impact on wages than sex for workers with minority supervisors. Based on past research, we theorize that the degree of labour discrimination workers face may also be dependent upon the location and size of the firm in which they are employed. However, decomposing the samples by firm location and size suggests that these two factors cannot adequately explain the observed matched supervisor--worker wage effects, which supports the notion that these wage effects are largely driven by factors other than supervisor discrimination.

Suggested Citation

  • J. D. Pitts & S. Orozco-Aleman & J. Rezek, 2014. "The role of supervisors in the determination of wages and wage gaps," Applied Economics, Taylor & Francis Journals, vol. 46(29), pages 3533-3547, October.
    • Handle: RePEc:taf:applec:v:46:y:2014:i:29:p:3533-3547
    DOI: 10.1080/00036846.2014.934430
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    Cited by:

    1. Tamar Khitarishvili, 2016. "Two tales of contraction: gender wage gap in Georgia before and after the 2008 crisis," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-28, December.
    2. Yariv Fadlon & Sophie Tripp, 2022. "The role of supervisor race and gender on promotion likelihood," Economics Bulletin, AccessEcon, vol. 42(3), pages 1280-1294.

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