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A hierarchical theory of occupational segregation and wage discrimination

Authors

  • ML Baldwin,

    1. Department of Economics, East Carolina University, Greenville, NC 27858-4353, USA Tel: 1 252 328 6383 Fax: 1 252 328 6743 E-mail: baldwinm@email.ecu.edu
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  • RJ Butler,

    1. Department of Economics, East Carolina University, Greenville, NC 27858-4353, USA Tel: 1 252 328 6383 Fax: 1 252 328 6743 E-mail: baldwinm@email.ecu.edu
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  • WG Johnson

    1. Department of Economics, East Carolina University, Greenville, NC 27858-4353, USA Tel: 1 252 328 6383 Fax: 1 252 328 6743 E-mail: baldwinm@email.ecu.edu
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    • *

      We appreciate comments on an earlier draft form Meghan Busse, Ron Ehrenberg, James Heckman, Mark Killingsworth, peter Kuhn, Olivia Mitchell, Joel Sobel, and John D. Worrall and comments made in work-shops at Brigham Young University, Cornell University, East Carolina Univesity, Rutgers University, and the University of Chicago.


Abstract

Becker's model of discrimination is extended to the case where men exhibit distastes for working under female managers. The distribution of women in the resulting occupational hierarchy depends on the number of women in lower occupations, the wages of male workers in lower occupations, and male distastes for female management. Thus, there exists an occupational sorting function, related to wages, that determines the occupational distribution of women. We integrate this sorting function into a standard wage equation to derive a new decomposition of male-female wage differentials and apply it to a sample of insurance industry workers from the 1988 CPS.

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