Our study evaluates and extends existing wage decomposition methodologies that seek to measure the contributions of endowments, pure wage discrimination, and job segregation. Of particular interest is the model of hierarchical segregation in Baldwin, Butler, and Johnson (2001). We employ data...

Probit and logit models typically require a normalization on the error variance for model identification. This paper shows that in the context of sample mean probability decompositions, error variance normalizations preclude estimation of the effects of group differences in the latent variable...

The Federal criminal sentencing guidelines struck down by the U.S. Supreme Court in 2005 required that males and females who commit the same crime and have the same prior criminal record be sentenced equally. Using data obtained from the United States Sentencing Commission's records, we examine...

In this paper we develop a job portfolio model of dual job holding based on a Stone-Geary utility function. We derive the associated Slutsky equation components. Because the job portfolio model applies only to unconstrained dual jobholders, we separate individuals who moonlight because of an...

This paper examines the extent to which the incidence of dual job holding is cyclically sensitive in the context of hours constraints on labor supply. Linear probability models of the incidence of dual job holding are estimated separately for each hours constraint regime. Selection effects are...

This paper analyzes wage decomposition methodology in the context of panel data sample selection embedded in a correlated random effects setting. Identification issues unique to panel data are examined for their implications for wage decompositions. As an empirical example, we apply our...

In addition to discrimination, market power, and human capital, gender differences in risk preferences might also contribute to observed gender wage gaps. We conduct laboratory experiments in which subjects choose between a risky (in terms of exposure to unemployment) and a secure job after...

Statistical discrimination occurs when distinctions between demographic groups are made on the basis of real or imagined statistical distinctions between the groups. While such discrimination is legal in some cases (e.g., insurance markets), it is illegal and/or controversial in others (e.g.,...

We address the bias from using potential vs. actual experience in earnings models. Statistical tests reject the classical errors-in-variable framework. The nature of the measurement error is best viewed as a model misspecification problem. We correct for this by modeling actual experience as a...

A nine-factor input model is developed to estimate the monthly demand for employment, capital, and weekly hours per worker/workweek in U.S. Manufacturing. The labor inputs correspond to production and non-production workers disaggregated by overtime and non-overtime employment. Policy...