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Is There Labor Market Discrimination among Professionals in Chile? Lawyers, Doctors and Businesspeople

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  • David Bravo
  • Claudia Sanhueza
  • Sergio Urzua

Abstract

This paper analyzes gender differences in three Chilean professional labor markets, Business, Law and Medicine, utilizing a new and rich data set collected for this purpose. The results show that differences in wages attributed to gender are only present in the legal profession. In Business/Economics, a vector of current family condition eliminates the gender effect and in Medicine, taking into account hours worked, size of firm and region also eliminates gender differences. The paper further shows that individuals’ perceived locus of control (internal or external) is relevant in explaining the distribution of earnings.

Suggested Citation

  • David Bravo & Claudia Sanhueza & Sergio Urzua, 2008. "Is There Labor Market Discrimination among Professionals in Chile? Lawyers, Doctors and Businesspeople," Research Department Publications 3248, Inter-American Development Bank, Research Department.
    • Handle: RePEc:idb:wpaper:3248
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    References listed on IDEAS

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    1. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 2, number 9780226041162, December.
    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.
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    4. James J. Heckman & Jora Stixrud & Sergio Urzua, 2006. "The Effects of Cognitive and Noncognitive Abilities on Labor Market Outcomes and Social Behavior," Journal of Labor Economics, University of Chicago Press, vol. 24(3), pages 411-482, July.
    5. Neal, Derek A & Johnson, William R, 1996. "The Role of Premarket Factors in Black-White Wage Differences," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 869-895, October.
    6. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
    7. James J. Heckman, 1998. "Detecting Discrimination," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 101-116, Spring.
    8. Fernández, Raquel & Olivetti, Claudia & Fogli, Alessandra, 2004. "Preference Formation and the Rise of Women's Labour Force Participation: Evidence from WWII," CEPR Discussion Papers 4493, C.E.P.R. Discussion Papers.
    9. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259, Elsevier.
    10. June E. O'Neill & Dave M. O'Neill, 2005. "What Do Wage Differentials Tell Us about Labor Market Discrimination?," NBER Working Papers 11240, National Bureau of Economic Research, Inc.
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