Statistical Discrimination and Gender Wage Gap: A Model

Xia Li

Front. Econ. China ›› 2012, Vol. 7 ›› Issue (2) : 286-304.

PDF(349 KB)
PDF(349 KB)
Front. Econ. China ›› 2012, Vol. 7 ›› Issue (2) : 286-304. DOI: 10.3868/s060-001-012-0013-0
research-article
research-article

Statistical Discrimination and Gender Wage Gap: A Model

Author information +
History +

Abstract

In this paper, I extend the model in Coate and Loury (CL) (1993) to show how statistical discrimination by employers can help create gender wage gap for men and women with equal earning potentials. Given that employers do not perfectly observe a worker’s skill type and partly rely on the average skills level of his (her) peers for inference purpose, employers’ differential treatment of male and female workers can create different skill-investment incentives for them, which in turn justify employers’ discrimination in the first place. The second result of this paper which is not possible within the original CL framework is that I point to the possibility that there exist circumstances under which the gender wage gap can not be eliminated without the formerly advantaged sex being negatively affected.

Keywords

gender wage gap / home production / statistical discrimination

Cite this article

Download citation ▾
Xia Li. Statistical Discrimination and Gender Wage Gap: A Model. Front Econ Chin, 2012, 7(2): 286‒304 https://doi.org/10.3868/s060-001-012-0013-0

RIGHTS & PERMISSIONS

2014 Higher Education Press and Brill
PDF(349 KB)

Accesses

Citations

Detail

Sections
Recommended

/