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Estimating the Employment Effects of Wage Discrimination

Author

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  • Baldwin, Marjorie
  • Johnson, William G

Abstract

If labor supply curves are not perfectly inelastic, wage discrimination induces some minority workers to leave the labor force. Studies of discrimination that focus only on wage differentials overlook these disincentive effects on minority employment. This article introduces a method of estimating the employment effects of wage discrimination and applies it to data on men and women from the 1984 Survey of Income and Program Participation. The authors find that wage discrimination against women caused a net loss of over four million jobs, supporting Gary Becker's contention that discriminatory employers use labor inefficiently. Copyright 1992 by MIT Press.

Suggested Citation

  • Baldwin, Marjorie & Johnson, William G, 1992. "Estimating the Employment Effects of Wage Discrimination," The Review of Economics and Statistics, MIT Press, vol. 74(3), pages 446-455, August.
    • Handle: RePEc:tpr:restat:v:74:y:1992:i:3:p:446-55
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    Citations

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    Cited by:

    1. Schober, Thomas & Winter-Ebmer, Rudolf, 2009. "Gender Wage Inequality and Economic Growth: Is There Really a Puzzle?," IZA Discussion Papers 4323, Institute of Labor Economics (IZA).
    2. Ceesay, Ebrima K., 2013. "Inequality and growth," MPRA Paper 45492, University Library of Munich, Germany.
    3. Chung Choe, 2013. "Determinants of Labor Market Outcomes of Disabled Men Before and After the Americans with Disabilities Act of 1990," Korean Economic Review, Korean Economic Association, vol. 29, pages 211-233.
    4. Pervaiz, Zahid & Chani, Muhammad Irfan & Jan, Sajjad Ahmad & Chaudhary, Amatul R., 2011. "Gender inequality and economic growth: a time series analysis for Pakistan," MPRA Paper 37176, University Library of Munich, Germany, revised 2011.
    5. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    6. Jagannathan, Radha & Camasso, Michael J & LaFleur, Jocelyn & Monteleone, Simona, 2024. "Modeling the employment decisions of young men and women in nine European countries: An application of random utility theory and revealed preference," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 233-247.
    7. Kidd, Michael P. & Sloane, Peter J. & Ferko, Ivan, 2000. "Disability and the labour market: an analysis of British males," Journal of Health Economics, Elsevier, vol. 19(6), pages 961-981, November.
    8. Schober, Thomas & Winter-Ebmer, Rudolf, 2011. "Gender Wage Inequality and Economic Growth: Is There Really a Puzzle?--A Comment," World Development, Elsevier, vol. 39(8), pages 1476-1484, August.
    9. Marjorie L. Baldwin & William G. Johnson, 2000. "Labor Market Discrimination Against Men with Disabilities in the Year of the ADA," Southern Economic Journal, John Wiley & Sons, vol. 66(3), pages 548-566, January.
    10. Michael P. Kidd & Euan Phimister & Ivan Ferko, 2003. "Are Employment Effects of Gender Discrimination Important? Some Evidence from Great Britain," Manchester School, University of Manchester, vol. 71(6), pages 593-610, December.
    11. repec:mpr:mprres:341e1dba100a4d988613006cb2957100 is not listed on IDEAS
    12. Kevin F. Hallock & Xin Jin & Michael Waldman, 2022. "The total compensation gap, wage gap and benefit gap between workers with and without a disability," British Journal of Industrial Relations, London School of Economics, vol. 60(1), pages 3-31, March.
    13. Rodríguez Álvarez, Vanesa, 2012. "El empleo de las personas con discapacidad en la gran recesión: ¿son los Centros Especiales de Empleo una excepción?/The employment of people with disabilities in the great recession: are the Sheltere," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 30, pages 237-260, Abril.
    14. Madhu S. Mohanty, 2003. "An Alternative Explanation for the Equality of Male and Female Unemployment Rates in the U.S. Labor Market in the Late 1980s," Eastern Economic Journal, Eastern Economic Association, vol. 29(1), pages 69-92, Winter.
    15. repec:mpr:mprres:8112 is not listed on IDEAS
    16. Nabila Khurshid & Asma Fiaz & Jamila Khurshid, 2020. "Analyzing the Impact of Gender Inequality on Economic Development in Pakistan: ARDL Bound Test Cointegration Analysis," International Journal of Economics and Financial Issues, Econjournals, vol. 10(4), pages 264-270.
    17. Ricardo Pagán & Miguel Malo, 2009. "Job satisfaction and disability: lower expectations about jobs or a matter of health?," Spanish Economic Review, Springer;Spanish Economic Association, vol. 11(1), pages 51-74, March.
    18. repec:eee:labchp:v:3:y:1999:i:pc:p:3143-3259 is not listed on IDEAS

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