Does More Mean Less? The Male/Female Wage Gap and the Proportion of Females at the Establishment Level

The Canadian Journal of Economics, Vol. 32, No. 4(Aug. 1999), pp. 906-929

Posted: 25 Aug 1999 Last revised: 31 Mar 2013

See all articles by Kevin T. Reilly

Kevin T. Reilly

Independent

Tony S. Wirjanto

University of Waterloo - School of Accounting and Finance; University of Waterloo, Department of Statistics & Actuarial Science

Date Written: August 1, 1999

Abstract

We examine the theoretical, empirical, and public policy implications of the proportion of females in the establishment. Arrow's model of heterogeneous employer discrimination provides predictions that are tested. Empirical results indicate support for the theory using establishment data, but a contradiction is obtained with the individual data. It is estimated that the proportion of females in the establishment accounts for 26 per cent of the gender log wage gap. Implications for employment equity are considered in the context of a new method of decomposing the log wage gap and indicate that such public policy can reduce this gap by 20 per cent.

JEL Classification: J71, J78

Suggested Citation

Reilly, Kevin T. and Wirjanto, Tony S., Does More Mean Less? The Male/Female Wage Gap and the Proportion of Females at the Establishment Level (August 1, 1999). The Canadian Journal of Economics, Vol. 32, No. 4(Aug. 1999), pp. 906-929, Available at SSRN: https://ssrn.com/abstract=176088 or http://dx.doi.org/10.2139/ssrn.176088

Tony S. Wirjanto

University of Waterloo - School of Accounting and Finance ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1
Canada
519-888-4567 x35210 (Phone)

HOME PAGE: http://https://uwaterloo.ca/statistics-and-actuarial-science/people-profiles/tony-wirjanto

University of Waterloo, Department of Statistics & Actuarial Science ( email )

200 University Avenue West
Waterloo, Ontario N2L 3G1
Canada
519-888-4567 x35210 (Phone)
519-746-1875 (Fax)

HOME PAGE: http://math.uwaterloo.ca/statistics-and-actuarial-science/people-profiles/tony-wirjanto

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