gender wage gaps reconsidered a structural approach using matched employer employee data in this paper we study the extent to which wage differentials between men and women can be explained by differences in productivity disparities in friction patterns segregation and wage discrimination for this purpose we propose an equilibrium search model that features rent splitting on the job search and two sided heterogeneity in productivity the model is estimated using german matched employer employee data overall the results reveal that female workers are less productive and more mobile than males in addition female workers have on average slightly lower bargaining power than their male counterparts

measuring the pay disparity between typically female occupations and other jobs a bivariate selectivity approach the author of this study using a bivariate probit selectivity model with data from the 1984 panel survey of income dynamics finds that women in female dominated jobs earned 6 15 percent less than

glass ceilings or glass doors the role of firms in male female wage disparities i use canadian linked employer employee data to examine whether women face a glass ceiling in the labour market i also measure the extent to which the glass ceiling comes about because women are segregated into lower paying firms or because they are segregated into lower paying jobs within firms i find clear evidence that women experience a glass ceiling that is driven by their disproportionate sorting across firm types glass doors rather than within firms i find no evidence that these results are supply driven however my results are consistent with predictions of an efficiency wage model where high paying firms discriminate against females

the crowding hypothesis and comparable worth although women s pay and occupational distribution have improved during the past few years it is still true that women earn considerably less than men and that their occupational distribution is substantially different because progress has been slow toward equality in the labor market some have called for a comparable worth policy proponents of this approach argue that occupational segregation contributes to the earnings disparity between women and men one theoretical justification for this position is the crowding hypothesis this paper first explains this theory and presents a method used to test its principal hypothesis it then describes an extension of this design for estimating the phenomenon that comparable worth policies address empirical studies conducted in this area are viewed and new findings are presented finally limitations of this analysis are discussed i introduction

engineering robust instruments for gmm estimation of panel data regression models with errors in variables a note econometricians have long recognized the need to account in some way for measurement errors specification errors and endogeneity to ensure that the ordinary least squares estimator is consistent this article introduces a new generalized method of moments estimator that relies on robust instruments to estimate panel data regression models containing errors in variables we show how this gmm approach can be generalized for the panel data framework using higher moments and cumulants as instruments the new instruments engineered for greater robustness are proposed to tackle the pervasive problem of weak instruments

stereotypes and tournament self selection a theoretical and experimental approach abstract we present a theoretical model in which agents have imperfect self knowledge about their abilities and have to self select into either a high paying or a low paying tournament the model shows that negative positive stereotypes generate underrepresentation overrepresentation of stereotyped agents in the high paying tournament even when the stereotype is false this is because stereotypes affect self assessment and consequently subsequent behavior we call this mechanism self stereotyping we run a lab experiment in which we use subjects beliefs about the gender bias of a real effort task to test the predictions of the theoretical model the results of the experiment are in line with the predictions of the model for men but not for women which partially validates the model and the self stereotyping mechanism

the structure of the female male wage differential is it who you are what you do or where you work the efficacy of policies to narrow the malelfemale wage differential depends partly on the size of the portion s of the gap targeted previous research finds no between sex wage gap within occupations within employer job cell this is the first study to disentangle segregation by occupation from that based on employer or on job cell in five industries controlling for other forms of segregation occupational segregation produces a gap of 11 percent manufacturing to 26 percent services the wage gaps from establishment and job cell segregation are about 6 percent each since comparable worth acts on the occupation and job cell components it has a potentially large impact

manager impartiality worker firm matching and the gender wage gap using a rich matched employer employee data set from sweden the author examines whether female managers in a firm narrow the gender pay gap the study s main contribution is its ability to account for unobserved heterogeneity among both workers and firms that is potentially correlated with manager gender the results show a substantial negative association between the representation of female managers and the establishment s gender wage gap estimates that account for sorting on unobserved worker skills however do not support the conclusion that managers favor same sex workers in wage setting additional results show that organizations with more female managers recruit more nonmanagerial high wage women together these findings suggest that associations between manager gender and male female wage gaps should be interpreted with caution as worker sorting seems to be a crucial component behind this relationship

does marriage really make men more productive this paper presents new descriptive evidence regarding marital pay premiums earned by white males longitudinal data indicate that wages rise after marriage and that cross sectional marriage premiums appear to result from a steepening of the earnings profile data from a company personnelfile that includes information on job grades and supervisor performance ratings reveal large marital status pay differences within a narrow range of occupations managers and professionals and environments a single firm married workers tend to be located in higher paying job grades there are very small pay differentials within grades married men receive higher performance ratings than single men as a result they are much more likely to be promoted controlling for rated performance however eliminates the promotion differential sanders korenman is an assistant professor of economics and public affairs at princeton university and is a faculty associate of the office of population research at princeton university and a research affiliate of the national bureau of economic research nber david neumark is an assistant professor of economics at the university of pennsylvania and a research affiliate of the nber korenman wishes to acknowledge the hewlett foundation and the harvard university center for population studies for financial support the authors are grateful to james medofffor making available an extract from the company personnelfile questions regarding data availability should be directed to professor james

workforce gender effects on firm performance and workers pay evidence for the uk using linked workplace worker data for the uk a number of hypotheses are tested related to individual gender and the gender composition of the workforce the proportion of female workers per establishment is strongly negatively associated with median workplace pay there is some evidence that workplace performance but not employment size or growth is positively associated with the female male workforce ratio for workers the female wage penalty which is substantial is strongly influenced by the female male workforce ratio in addition commensurate with gender discrimination those who manage female workers receive lower wages but professional workers in the same establishments do not

marriage motherhood and wages we explore several problems in drawing causal inferences from cross sectional relationships between marriage motherhood and wages we find that heterogeneity leads to biased estimates of the direct effects of marriage and motherhood on wages i e effects net of experience and tenure first difference estimates reveal no direct effect of marriage or motherhood on women s wages we also find statistical evidence that experience and tenure may be endogenous variables in wage equations instrumental variables estimates suggest that both ordinary least squares cross sectional and first difference estimates understate the direct negative effect of children on wages

strategic self dispatch considering ramping costs in deregulated power markets ramp rates of generators are generally specified within elastic range of the strength of the shaft to safeguard the rotor from fatigue these limits can however be exceeded albeit at the risk of reducing the rotor life such effects on the rotor life can be compensated by incorporating appropriate ramping costs power demand and power price in deregulated power markets have shown a tendency of sudden wide excursions over short intervals of time the ability to respond to such fast change in demand and price can be quite rewarding this provides the motivation to utilize the ramping rates beyond traditional elastic limits this paper studies the strategic use of ramping rates beyond elastic limits in a power producer s self dispatch in a power market with price and demand volatility a set of ramping processes has been developed from ramping cost versus ramping time relationships to derive the total operation cost including ramping costs for various levels of ramping rates exceeding elastic limits a thorough theoretical analysis has been conducted for the selection of the optimal ramping process under different conditions a numerical example is presented to highlight the potential benefits from the optimal use of these ramping processes it is seen that the benefit from the strategic use of ramp rates beyond elastic limits not only depends on the high price in the power market but also on the initial loading of the generator which limits the capacity available for dispatch

optimal response of a power generator to energy agc and reserve pool based markets the electric power industry all over the world is undertaking major regulatory and operational changes the understanding of power supply as a public service is being replaced by the notion that competitive markets constitute a more appropriate framework to supply reliable and cheap electric energy to consumers as mandated by ferc orders 888 and 889 this paper considers simultaneously energy agc and reserve markets in a pool framework it provides a tool to enable a power generator to determine optimally its degree of involvement in each one of these markets a real world case study is analyzed and results are presented

mommy tracks and public policy on self fulfilling prophecies and gender gaps in hiring and promotion abstract consider a model with two types of jobs the profitability of hiring a worker to a fast track job depends not only on his or her observable talent but also on incontractible effort we investigate whether self fulfilling expectations may lead to higher hiring or promotion standards for women if employers expect women to do more household work than men thereby exerting less effort in their paid job then women must be more talented to make it profitable to hire them specialization in the family will then result in women doing most of the household work such self fulfilling prophecies can be defeated by affirmative action or family policy however it is unlikely that temporary policy can move the economy to a symmetric equilibrium policy must be made permanent anti discrimination policy need not enhance efficiency and from a distribution viewpoint this is a policy with both winners and losers

product market competition and gender discrimination award winning work by the call for competition in the markets a partnership between the office for strategy and studies of the ministry of economy gee and the associacao mutualista montepio

gender difference in promotions new evidence from the internal labor market in china gender differences in the labor market have attracted significant attention from economists who focus on gender differences not only in wages but also in promotions however the research on gende

weak instruments diagnosis and cures in empirical econometrics what is the weak instruments wi problem and what causes it universal agreement does not exist on these questions we define weak instruments by two features i two stage least squares 2sls analysis is badly biased toward the ordinary least squares ols estimate and alternative unbiased estimators such as limited information maximum likelihood liml may not solve the problem and ii the standard first order asymptotic distribution does not give an accurate framework for inference thus a researcher may estimate bad results and not be aware of the outcome the cause of wi is often stated to be a low r or f statistic of the reduced form equation in the most commonly occurring situation of one right handside endogenous variable we find the situation is more complex with an additional factor the correlation between the stochastic disturbances of the structural equation and the reduced form that needs to be taken into account we discuss in this paper a specification test hahn and hausman 2002a for wi a caution against using no moments estimators such as liml in the wi situation and suggestions for different estimators an approach to inference of frank kleibergen 2002 for wi we end with a caution of how small biases can become large biases in the wi situation we begin with the limited information structural model under the assumptions of hausman 1983

influence of firm performance and gender on ceo compensation in this article we continue the examination of top executive pay by comparing performance total pay and the influence of ceo gender we analyse compensation differences between male and female ceos using nonparametric analysis we calculate the potential compensation for each executive using two benchmarks first each executive s performance and compensation are evaluated relative to members of the same gender to produce a same gender measure of under compensation each executive s compensation is also benchmarked against the other gender s potential compensation producing an other gender measure of under compensation together both measures allow an analysis of the gender specific potential salaries of each executive while controlling for performance the approach is applied to a sample of male and female executives the results indicate that women are under compensated

cumulant instrument estimators for hedge fund return models with errors in variables we revisit the factors incorporated in asset pricing models following the recent developments in financial markets i e the rise of shadow banking and the change in the transmission channel of monetary policy we propose two versions of the fung and hsieh 2004 hedge fund return model especially an augmented market model which accounts for the new dynamics of financial markets and the procyclicality of hedge fund returns we run these models with an innovative hausman procedure tackling the measurement errors embedded in the models factor loadings our empirical method also allows for confronting the drawbacks of the instruments used to estimate hedge fund asset pricing models

national pro poor spending programmes and their effect on income inequality and poverty evidence from vietnam abstractthis article examines the causal effects of the national pro poor targeted programmes ntps on both poverty incidence and inequality in vietnam over the period 2002 2010 while the links between ntps and poverty alleviation and income inequality have previously been analysed independently this study is the first to offer a comprehensive analysis of ntps expenditure on poverty and inequality simultaneously applying the system generalized method of moments estimator to a panel of vietnamese regional data we are unable to establish that ntps have significantly mitigated poverty incidence however we estimate that ntps have significantly increased inequality we offer possible explanations why the ntps have resulted in these unintended outcomes and discuss potential policies which can reduce both poverty and inequality

the distribution of the male female earnings differential 1970 1990 the authors examine the male female earnings differential between 1970 and 1990 their objective is to provide consistent estimates that can be compared and interpreted over time and to assess the sensitivity of their results to alternative specifications the authors find that women made modest gains over the period standard decomposition techniques reveal that gender differences in observable characteristics do not explain much of the earnings differential most of the improvement in women s relative earnings has come by a decline in the unexplained component the authors also find that the differential varies systematically across age and education groups and across high and low income women coauthors are dwayne benjamin andree desaulniers and mary grant

competition and gender prejudice are discriminatory employers doomed to fail according to becker s famous theory on discrimination gary becker 1957 the economics of discrimination university of chicago press entrepreneurs with a strong prejudice against female workers forgo profits by submitting to their tastes in a competitive market their firms lack efficiency and are therefore forced to leave we present new empirical evidence for this prediction by studying the survival of start up firms in longitudinal matched employer employee data we find that firms with strong preferences for discrimination approximated by a low share of female employees relative to the industry average have significantly shorter survival rates this is especially relevant for firms starting out with female shares in the lower tail of the distribution competition at the industry level additionally reduces firm survival and accelerates the rate at which prejudiced firms are weeded out we also find evidence for employer learning as highly discriminatory start up firms that manage to survive submit to market powers and increase their female workforce over time

the public private sector gender wage differential in britain evidence from matched employee workplace data this article shows that little of the gender earnings gap in the public and private sectors in britain are explained by differences in employee characteristics the differences in workplace characteristics however make a significant sizeable contribution it is shown that performance related pay and company pension schemes are associated with higher relative earnings in the private sector whilst increased provision of family friendly employment practices in the public sector is associated with higher relative earnings for women

occupational segregation and the gender wage gap in a dynamic east asian economy labor markets in the east asian miracle economies have undergone profound changes in recent decades as their comparative advantage in low wage labor diminished and jobs shifted toward higher skill manufacturing and services this study uses an occupational decomposition technique to examine how such shifts in east asia s occupational structures have affected trends in their gender wage gaps the wage gap is decomposed into across occupation and within occupation factors that are each further separated into wage and employment components results based on a comprehensive labor force data set for taiwan show that within occupation pay discrepancies account for the bulk of gender wage inequity

evidence on the glass ceiling effect in france using matched worker firm data in this article we investigate the relevance of the glass ceiling hypothesis in france according to which there exist larger gender wage gaps at the upper tail of the wage distribution using a matched worker firm data set of about 1 30 000 employees and 14 000 employers we estimate quantile regressions and rely on a principal component analysis to summarize information specific to the firms our different results show that accounting for firm related characteristics reduces the gender earnings gap at the top of the distribution but the latter still remains much higher at the top than at the bottom furthermore a quantile decomposition shows that the gender wage gap is mainly due to differences in the returns to observed characteristics rather than in differences in characteristics between men and women

psychological bias and gender wage gap basing our work on the literature on psychology that highlights differences in confidence levels between men and women we provide a rationale for the simultaneous existence of the two dimensions of the gender wage gap i on average men earn more than women and ii the difference in wages depends on the gender structure we also argue that although an equal compensation policy does not eliminate the gender wage gap it nonetheless increases social welfare finally endogenizing the choice of task by agents we show how women in a vast majority can self select on low paying jobs

new evidence on sex segregation and sex differences in wages from matched employee employer data we use new matched employer employee data to estimate the contributions of sex segregation and wage differences by sex within occupation industry establishment and occupation establishment cells to the overall sex gap in wages in contrast to earlier data used to study this question our data cover all industries and occupations across all regions of the united states we find that segregation of women into lower paying occupations industries establishments and occupations within establishments accounts for a sizable fraction of the sex gap in wages nonetheless approximately one half of the sex gap in wages remains attributable to the individual s sex

earnings differentiation in the tourism industry gender human capital and socio demographic effects abstract this paper draws attention to a somewhat neglected field within tourism research namely the production side of tourism set within a human capital framework the purpose of the study is to examine if and how the variables education work experience and the socio demographic variables parenthood and marriage affect norwegian tourism employees annual wages in the 1994 2002 period furthermore the study specifically examines how the variables gender and time affect these wages among several findings four are of major importance 1 male tourism employees receive about 20 higher wages annually than their female counterparts ceteris paribus 2 there is a concave i e inverted u relationship between work experience and annual wages for both female and male employees but this pattern is much less distinct for females 3 both parenthood and marriage affect wages but their effects differ between male and female employees 4 all tourism employees experience a positive annual wage development in the period studied

human capital and information this paper examines the issue of the establishment size wage effect it analyzes a cross section for the year 1979 with information on 607 individuals and the 60 private sector establishments where they work it discusses four theories of the establishment size wage effect and uses empirical proxies to test them it shows that when a dummy variable on computer access in the establishment is introduced as a regressor the establishment size variable is an insignificant regressor this result and other evidence supports the contention that the establishment size coefficient captures the effect of unobserved human capital accumulation

optimal bidding strategies for hydro electric producers a literature survey in a competitive environment with bid based markets power generation companies desire to develop bidding strategies that maximize their revenue in this paper we ask what approaches and methodologies have been used to model the bidding problem for hydro electric producers we present the problem s developments over time and through reviewing different variants of the problem progressively build to the case in which the agent is a price maker hydro electric producer in each variant of the bidding problem we examine how the approaches used to solve it may or may not be applicable to other variants last for the price maker hydro electric producer s bidding problem we recognize the most recent developments and illuminate a path for future efforts

a review on risk constrained hydropower scheduling in deregulated power market in deregulated power market hydro producer has in principle no other objective than to produce electricity and sell with maximum profit with lower market risk attention must focus on profit uncertainty caused by uncertainty in spot prices and reservoir inflow the purpose of this review is to assess the state of the art in hydropower operations considering profit risk under uncertainty and consider future directions for additional research and application physical and financial tools to hedge risk in bilateral market and risk assessment methods are all discussed in detail furthermore production resources can also be used to manage risk to a certain extent this concept when be integrated with variety of risk management methods under stochastic optimal framework has operational significance for hydro producer participating in electricity market

evolution of the gender earnings gap among canadian university graduates this paper reports the results of an empirical analysis of the gender earnings gap among recent canadian bachelor s level university graduates the overall gap as of two years leaving university narrowed significantly across successive cohorts of graduates but widened significantly from two to five years out for all groups differences in the explanatory variables explain account for between 40 and essentially the entire gap across the different periods this portion rising from two to five years out and across cohorts by the final group all of the gap is thus explained at the two year point in time and most of it is explained at the five year mark meaning that labour market returns measured in this manner are largely gender neutral for the last group of graduates hours of work is the single most important influence while past work experience job characteristics family status and province of residence and language have smaller and more mixed effects

gender segregation in occupations the role of tipping and social interactions this paper documents that the dynamics of occupational segregation are highly nonlinear and exhibit tipping patterns occupations experience discontinuous declines in net male employment growth at tipping points ranging from 25 to 45 from 13 to 30 female in white collar blue collar occupations from 1940 to 1990 these patterns appear consistent with a schelling 1971 social interaction model where tipping results from male preferences toward the fraction female in their occupation supporting the model s predictions evidence from the general social survey indicates that tipping points are lower in regions where males hold more sexist attitudes toward the appropriate role of women

the impact of segregation and sorting on the gender wage gap evidence from german linked longitudinal employer employee data for this study the author inspects the relationship between segregation in the workplace measured as the proportion female in job cells and the gender wage gap using linked longitudinal employer employee data from the german employment register he extends the literature by controlling for nonrandom sorting of workers into job cells establishments and occupations in line with previous studies the pooled least squares estimates show that the gender wage gap increases as the job cell level proportion of females increases this increase is attributable to the fact that women experience greater wage declines than men do when additional women enter their job cells controlling additionally for unobserved heterogeneity at the individual establishment occupation and job cell levels considerably reduces the size of the proportion female effects on women s wages while rendering the effects on men s wages insignificant or even positive the same controls also significantly decrease the proportion effects on the wage gap the related sorting analysis shows that a good deal of the proportion effects can be explained by unobserved individual ability and suggests that especially women working in job cells with small proportions of females show above average unobserved individual ability

thermal power generation scheduling by simulated competition this paper presents a new method for solving the unit commitment problem by simulation of a competitive market where power is traded through a power exchange px procedures for bidding and market clearing are described the market clearing process handles the spinning reserve requirements and power balance simultaneously the method is used on a standard unit commitment problem with minimum up down times start up costs and spinning reserve requirement taken into account comparisons with solutions provided by lagrangian relaxation genetic algorithms and chao an li s unit decommitment procedure demonstrate the potential benefits of this new method the motivation for this work was to design a competitive electricity market suitable for thermal generation scheduling however performance in simulations of the proposed market has been so good that it is presented here as a solving technique for the unit commitment problem

bidding in sequential electricity markets the nordic case abstract for electricity market participants trading in sequential markets with differences in price levels and risk exposure it is relevant to analyze the potential of coordinated bidding we consider a nordic power producer who engages in the day ahead spot market and the hour ahead balancing market in both markets clearing prices and dispatched volumes are unknown at the time of bidding however in the balancing market the market participant faces an additional risk of not being dispatched taking into account the sequential clearing of these markets and the gradual realization of market prices we formulate the bidding problem as a multi stage stochastic program we investigate whether higher risk exposure may cause hesitation to bid into the balancing market furthermore we quantify the gain from coordinated bidding and by deriving bounds on this gain assess the performance of alternative bidding strategies used in practice

works councils wages and job satisfaction we investigate the effects of works councils on employees wages and job satisfaction in general and for subgroups with respect to sex and occupational status making use of a german representative sample of employees we find that employees who move to a firm with a works council report increases in job satisfaction but do not receive particular wage increases especially the job satisfaction of female employees is affected by a change in works council status however we do not find support for the hypothesis that the introduction of a works council itself increases wages or job satisfaction for the employees staying at the firm

a garch forecasting model to predict day ahead electricity prices price forecasting is becoming increasingly relevant to producers and consumers in the new competitive electric power markets both for spot markets and long term contracts price forecasts are necessary to develop bidding strategies or negotiation skills in order to maximize profits this paper provides an approach to predict next day electricity prices based on the generalized autoregressive conditional heteroskedastic garch methodology that is already being used to analyze time series data in general a detailed explanation of garch models is presented and empirical results from the mainland spain and california deregulated electricity markets are discussed

industry effects and appropriability measures in the stock market s valuation of r d and patents this paper examines the stock market s valuation of a firm s innovative activity we estimate the market s relative valuation of firms tangible and intangible assets focusing on knowledge capital in the form of accumulated stocks of r d and patents we tried to improve upon our estimates of the stock market s valuation of knowledge capital embodied in such stocks by bringing in measures of the appropriability environment facing a firm from the yale survey on industrial research and development the responses to survey questions about the effectiveness of patents as a mechanism for protecting the returns from innovation turn out to be of some use there is evidence of an interaction between industry level measures of the effectiveness of patents and the market s valuation of a firm s past r d and patenting performance as well as its current r d moves we find no evidence however that other appropriability mechanisms differ enough across industries to leave measurable traces in our data the structure of the yale survey makes it possible to estimate the sampling error in the appropriability measures derived from it this information was used by us in an errors in variables context but with little success in the absence of r d variables our estimates imply that a two standard deviation increase in our index of patent effectiveness would raise the value of a patent held by our average firm from 0 4 million to 1 0 million when r d variables are introduced into the equations the patents variables become insignificant r d expenditures are a better measure of input to the innovative function of firms than patents are of its output but we estimate that the same experiment would induce changes in q of between 10 and 27 percent for the average firm approximately doubling the market s valuation of this kind of capital this abstract was borrowed from another version of this item

the expanding gender earnings gap evidence from the lehd 2000 census the gender earnings gap is an expanding statistic over the lifecycle we use the lehd census 2000 to understand the roles of industry occupation and establishment 14 years after leaving school the gap for college graduates 26 to 39 years old expands by 34 log points most occurring in the first 7 years about 44 percent is due to disproportionate shifts by men into higher earning positions industries and firms and about 56 percent to differential advances by gender within firms widening is greater for married individuals and for those in certain sectors non college graduates experience less widening but with similar patterns

gender wage differentials by education in italy in this article we evaluate wage differentials in italy combining gender and education perspectives the main goal of this article is to verify whether the extent of the gender pay gap varies between highly and low educated workers and whether or not the role played by gender differences in characteristics and in market rewards is similar in the two groups we apply quantile regression analysis and an adaptation of the procedure suggested by machado and mata 2005 to evaluate the predicted wage gap at different points of the female wage distribution scale the analysis is carried out on the italian sample of the last available year of the european community household panel echp we show that the extent and the trend of the gap predicted across the female distribution is sharply different between groups with diverse educational levels in the case of low educated workers although the predicted gap is largely explained by differences in rewards lower levels of education or experience are responsible

arima models to predict next day electricity prices price forecasting is becoming increasingly relevant to producers and consumers in the new competitive electric power markets both for spot markets and long term contracts price forecasts are necessary to develop bidding strategies or negotiation skills in order to maximize benefit this paper provides a method to predict next day electricity prices based on the arima methodology arima techniques are used to analyze time series and in the past have been mainly used for load forecasting due to their accuracy and mathematical soundness a detailed explanation of the aforementioned arima models and results from mainland spain and californian markets are presented

gender piece rates and wages evidence from matched employer employee data why are women disproportionately on piece rates we investigate three possible explanations 1 women are more likely to be on piece rates because they have a shorter expected tenure than men 2 a greater demand for flexibility between work and home attracts women to work place technologies suitable for variable pay based on individual performance 3 women prefer piece rates because they are subject to less wage discrimination when objective performance measures are available the weight of our empirical evidence supports the third hypothesis the unexplained gender wage gap is substantially smaller in the piece rate regime than in the time wage regime copyright 2004 oxford university press

employers discriminatory behavior and the estimation of wage discrimination this paper considers the linkage of empirical estimates of wage discrimination between two groups introduced by oaxaca 1973 to a theoretical model of employers discriminatory behavior it is shown that conditional on different assumptions about employers discriminatory tastes oaxaca s estimators of wage discrimination can be derived that the approach is more generally useful is demonstrated by deriving an alternative estimator of wage discrimination based on the assumption that within each type of labor e g unskilled skilled the utility function capturing employers discriminatory tastes is homogeneous of degree zero with respect to labor inputs from each of the two groups the estimators are compared empirically in an application to male female wage differentials

short term forecasting of electricity prices for miso hubs evidence from arima egarch models this study estimates three time series models arima arima egarch and arima egarch m for hourly real time electricity prices for each of the five hubs of the midwest independent system operator miso and examines the in and out of sample forecasting performance of the respective models the results from the arima models reveal the presence of autoregressive conditional heteroskedasticity recognizing the possibility of asymmetric time varying volatility the egarch specification for the variance equation demonstrates the presence of an inverse leverage effect in electricity prices for each hub with respect to forecasts no one model clearly dominates the others in terms of in sample forecasting performance based on four forecast evaluation statistics however the arima egarch m model outperforms the other models michigan hub is the exception in terms of the out of sample forecasting performance

wheeling of power under deregulated environment of power system a bibilographical survey the power industry is moving rapidly from regulated conventional setup to a deregulated environment there is an urgent need to keep a track of international experiences and activities taking place in this emerging field this paper gives a bibliographical survey and general backgrounds of research and development in the field of power system wheeling under deregulated environment based on over 170 published articles wheeling in general and the establishment of wheeling rate in particular are subjects of extensive debate today this will be very much useful for all countries especially those developing countries which are moving toward the unbundling of electricity supply industry esi the collected literature have been divided into many section so that new researchers do not face any difficulty for obtaining literature particularly in the area of wheeling of power under deregulated environment

interindustry wage differentials and the gender wage gap using data from the march 1988 current population survey the authors find that the wages of female workers differ significantly by industry even when the analysis controls for workers productivity related characteristics although these interindustry wage differentials are at least as large as men s and are highly correlated with them as well there are statistically significant differences between the two of the overall gender wage gap the average female worker earns about 65 as much as the average male worker 12 22 can be explained by differences between the patterns of interindustry wage differentials of men and women and 15 19 by differences in the distribution of male and female workers across industries thus the combined industry effects explain about one third of the overall gender wage gap

does more mean less the male female wage gap and the proportion of females at the establishment level we examine the theoretical empirical and public policy implications of the pro portion of females in the establishment arrow s model of heterogeneous employer discrim ination 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 es timated 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 and j78

the gender wage gap among phds in the uk this article analyses the gender wage gap gwg among phd graduates in the uk 42 months after their graduation in 2004 5 we find a sizeable overall gwg of 19 log percentage points which is explained by a large wage premium for men outside academia compared to women and men in academia the gwg in academia is small in comparison whilst the gwg outside academia is very high six months after graduation and remains largely unaltered the gwg inside academia doubles in the following three years the oaxaca decomposition suggests that for this relatively homogeneous group the gwg cannot be explained by differences in endowments university and employment characteristics we find stark differences in wage patterns between the fields of study and a strongly increasing coefficient effect for higher quantiles

credit market competition and the gender gap in labor force participation evidence from local markets abstract we exploit the exogenous variation in regional credit market competition brought on by banking deregulation to study the evolution of the gender gap in labor force participation in local us markets we find that intrastate deregulation increased substantially female labor force participation rates owing to three separate mechanisms an increase in the rates of net job creation by private firms an expansion of services producing sectors and an increase in the share of jobs requiring female specific skills this effect is robust to controlling for a range of socio economic developments as well as for a us wide gender specific trend overall intrastate deregulation reduced the gender gap in labor force participation by at least 7 5

the relationship between spot and futures prices in the nord pool electricity market abstract we analyze 11 years of historical spot and futures prices from the hydro dominated nord pool electricity market we find that futures prices tend to be higher than spot prices the average convenience yield is therefore negative but varies by season and depends on the storage levels in hydro reservoirs the average realized return on holding a long position in the futures market is also negative the negative convenience yield and risk premium contrast empirical findings in most other commodity markets we argue that differences between the supply and demand sides in terms of risk preferences and the ability to take advantage of short term price variations can contribute to explain the observed relationship between spot and futures prices in addition our analysis shows that the relationship between spot and futures prices is clearly linked to the physical state of the system such as hydro inflow reservoir levels and demand

robots computers and the gender wage gap abstract we analyze the effects of two automation technologies industrial robots and computing equipment on the gender wage gap in us local labor markets between 1990 and 2015 we find distinct impact of robot and computer capital an increase in robots decreases male wage more than female wage whereas an increase in computers reduces female wage more than male wage according to our estimates one additional unit of robot per thousand workers reduces gender wage gap by 0 3 log points and by contrast an increase in computer capital by one million dollars per thousand workers increases gender wage gap by 4 1 log points

gender segregation and earnings differences in the spanish labour market abstractthis article analyses the effects of different types of gender segregation on the gender wage differential for the spanish labour market matched employer employee data from a sample of 226 535 workers are used these workers are employed in 61 occupations within 26 492 establishments in 51 different industries workers belonging to the same industry establishment or job share common factors which cannot be observed and these factors affect wages if these unobservable variables are correlated with the explanatory variables their estimated effects will be biased for this reason we estimate the effects of each type of gender segregation on the wage gap using a robust specification to these possible correlations we obtain that industrial segregation by gender explains a lower part of the wage gap between men and women than previous researches found using standard regressions while the contributions of establishment segregation and occupational segregation within each establishment are greater

generation scheduling in a deregulated system the norwegian case the paper gives an overview of the deregulated electricity supply system in norway with emphasis on the generation scheduling approach procedures and tools for long medium and short term scheduling are described scheduling is carried out by each individual utility since scheduling is based on profit maximizing the spot market price is a very important factor this price is varying and uncertain however a part of the paper describes how to deal with this by considering the spot market price as an exogenously given stochastic variable it is shown how to extend the common water value computations so as to handle this case implications to the medium and short term scheduling are also discussed

gender segregation and wage gap an east west comparison this paper discusses the implication of recent results on the structure of gender wage gaps in transition economies for the literature on gender segregation differences in employment rates of low wage women driven by initial transition policies may be responsible for different wage penalties to predominantly female occupations new evidence presented here also suggests that the introduction of western type anti discrimination policies has had little immediate effect on the structure of female male wage differences jel j3 j7 p3

female led firms and gender wage policies using a longitudinal data set covering the period 1987 2000 the authors explore the impact of female employers and gender segregation on wages in portugal in the context of becker s 1957 taste for discrimination theory they investigate whether the gender of a firm manager affects gender wage differences they find that females benefit from higher wages in female led firms than in male led firms further when females lead the wage gap between female and male workers is reduced by 1 5 regardless of the gender composition of the workforce at the same time the higher the share of females in a firm the lower the wages overall for both female and male workers the authors results are compatible with the notion that job promotion is an important factor in wage increases the more females are mentored and promoted the less men will be however as more females in the firm compete for promotion opportunities for both females and males to be promoted diminish author s abstract

applying fixed effects to hierarchical segregation models this paper investigates whether the filing of a title vii class action lawsuit initiated a change in discriminatory promotion patterns at a regional grocery store chain by expanding the empirical implementation of hierarchical segregation models in a panel setting we develop a variation of wage decompositions that takes into consider ation an unbalanced panel design and extends the literature by explicitly formalizing the inclusion of the unobserved heterogeneous effects while there have been many studies that pro

the gender gap in earnings an international comparison with european matched employer employee data this article examines the origin of the cross country heterogeneity of the gender wage gap in nine european countries using a unique harmonized international matched employer employee dataset our novel findings suggest that cross country differences in the intensity of female segregation into low paying workplaces is a relevant source of international differences in the size of the gap and that international disparities in the characteristics of wage structures are not very influential on the other hand the evidence is not fully conclusive with respect to the influence on the variations of the gap of different macroeconomic social and institutional country specific features considered previously in the literature

financial decision making are women really more risk averse 40 males 33 females gain gambling gain domain loss gambling loss domain a contextual frames b abstract gambling frames studies the application of experimental methods provided stronger control of the economic environment in which decisions were made we elicited data which call into question the prevalence of stereotypic risk attitudes in financial decision making first we find that the comparative risk propensity of male and female subjects is strongly dependent on the financial decision setting second and more important we observe no gender differences in risk propensity when subjects face contextual decisions since in practice financial decisions are always contextual our results suggest that the above gender stereotype may not reflect true male and female attitudes toward financial risks i gender specific risk behavior an experimental design our experiment was designed to examine gender specific risk propensity in decisions relevant for investors and managers table 1 gives an overview of the experimental design in the main treatment we implemented risky choices in the form of investment and insurance decisions choice behavior in this treatment henceforth called the context treatment directly measures the risk behavior of male and female subjects in contextual financial decisions we also ran a control treatment in which the same risky choices were presented as abstract gambling decisions this control treatment henceforth called the abstract treatment allows us to validate the risk behavior induced by our experimental procedure in the light of the above mentioned gambling evidence in the context treatment subjects were confronted with risky choices in two different decision contexts subjects first had to complete a series of investment decisions they were then presented with a series of identical choices this time however framed as insur1 wealth effects from income differences outside the laboratory may still affect risk behavior in our experiment they are controlled for in our model 2 experimental instructions are available in german from the authors or in english from our web page www wif ethz ch publikationen htm ance decisions each investment and insurance decision incorporated a choice between a risky lottery and a certain payoff with the series of choices implemented in the two frames we elicited our subjects certainty equivalents for the same four risky lotteries l1 l2 l3 l4 in both contexts we implemented two frames in the context treatment in order to measure the risk propensity of subjects toward both perceived gains and perceived losses in both frames all possible payoffs for each decision were positive in the investment frame these payoffs were also presented as gains while in the insurance frame the same payoffs were presented as losses relative to an initial endowment therefore elicited certainty equivalents in the investment frame measure subjects risk propensities in the gain domain while certainty equivalents in the insurance frame measure risk propensity in the loss domain if in contextual financial decisions female subjects are generally more risk averse than men our results should display ceteris paribus lower female certainty equivalents in both the investment and insurance frames 3 the four lotteries l1 l2 l3 and l4 each had two possible outcomes payoffs in swiss francs 1 sfr a 0 60 and their probabilities were 30 sfr 6 10 sfr 6 30 sfr 2 10 sfr 2 30 sfr 6 10 sfr 6 and 50 sfr 2 20 sfr 2 respectively 4 experimental evidence suggests that individual risk propensity will vary systematically between the gain and loss domain daniel kahneman and amos tversky 1979 383 vol 89 no 2 gender and economic transactions 3y16 my68 mp 383 friday dec 10 08 20 am lp aer my68 figure 1 differences in mean certainty equivalents ce between male and female subjects by frame note certainty equivalents and male female differences are measured in swiss francs in the abstract treatment we confronted a different group of subjects with exactly the same risky decisions as those in the main treatment however as mentioned before all choices in this control treatment were framed as abstract gambling decisions again two frames were implemented in the gaingambling and loss gambling frames we measured the risk attitudes of subjects toward gambles in the gain and loss domain respectively subjects in both treatments were told in advance that one of their choices would determine their experimental earnings further all subjects completed a post experimental questionnaire which yielded information on each subject s disposable income this information is necessary to exclude wealth effects due to income differences outside the laboratory as an explanation of gender specific choice behavior

how immigrants fare across the earnings distribution in australia and the united states this paper investigates determinants of the earnings distribution for native born workers and immigrant workers in two countries the authors using data from the 2000 u s census and 2001 australian census employ a methodology quantile regression that facilitates measurement of the native born immigrant earnings differential and the partial effect of explanatory variables such as schooling and experience at each decile of the earnings distribution they find evidence that schooling and labor market experience had stronger earnings effects at higher deciles the native immigrant earnings gap varied by decile and in particular increased in the united states at higher deciles the results suggest that in the united states minimum wages compressed earnings at low deciles whereas in australia the minimum administered wage system compressed earnings across the entire distribution a pattern of higher earnings for immigrants than for the native born at the lowest earnings decile in australia may reflect favorable selectivity in migration

on the decomposition of wage differentials the often used method for decomposing wage differentials into human capital and discrimination components is reformulated so that both t he disadvantage or cost discrimination it imposes on a black or minority wage earner and the advantage or benefit it bestows on a white or majority wage earner can be estimated copyright 1988 by mit press

trends in the well being of american women 1970 1995 this paper examines the trends in the well being of american women over the last 25 years a time of significant changes in the relative economic status of women and in the labor market as a whole a broad range of indicators are considered to capture changes in women s well being in the family as well as in the labor market for virtually all age and education groups substantial evidence is obtained of rising gender equality in labor market outcomes notably labor force participation wages and occupational distributions broad evidence is also found of greater gender parity within married couple families as the housework time of husbands increased relative to wives and the relative wages of wives rose compared to their husbands however parallel to the recent evidence of the declining labor market position of lower skilled men there has been a similar deterioration in the economic status of less educated women especially high school dropouts their labor force participation rates and wages have risen at a much slower pace than those of more highly educated women while their incidence of single headship has increased much more rapidly these findings for less educated women serve to underscore the widening gap between more and less skilled americans of both sexes as well as to emphasize its broad dimensions

a real option based simulation model to evaluate investments in pump storage plants investments in pump storage plants are expected to grow especially due to their ability to store an excess of supply from wind power plants in order to evaluate these investments correctly the peculiarities of pump storage plants and the characteristics of liberalized power markets have to be considered the main characteristics of power markets are the strong power price volatility and the occurrence of prices spikes in this article a valuation model is developed capturing these aspects using power price simulation optimization of unit commitment and capital market theory this valuation model is able to value a future price based unit commitment planning that corresponds to future scope of actions also called real options the resulting real option value for the pump storage plant is compared with the traditional net present value approach because this approach is not able to evaluate scope of actions correctly it results in strongly smaller investment values and forces wrong investment decisions

capital asset pricing models revisited evidence from errors in variables abstract this paper revisits an instrumental variable technique to minimize the errors in variables problem in capital asset pricing models our results show that dagenais and dagenais dagenais m g dagenais d l 1997 higher moment estimators for linear regression models with errors in the variables journal of econometrics 76 193 221 estimator based on higher moments is well suited to correct for the bias induced by measurement errors in both the capm and the three factor model of fama and french fama e f french k r 1997 industry costs of equity journal of financial economics 43 153 193

strategic bidding for price taker hydroelectricity producers this paper introduces a stochastic programming model that integrates strategic bids or offers for electricity in quantities and prices in a deregulated electricity market the model is designed to maximize the profits of a producer of electricity who manages a series of power plants along a river the model is compared with a previously reported stochastic model where the bidding process is disregarded the superiority of the new model is empirically demonstrated on historical data

bargaining sorting and the gender wage gap quantifying the impact of firms on the relative pay of women there is growing evidence that rm specic pay premiums are an important source of wage inequality these premiums will contribute to the gender wage gap if women are less likely to work at high paying rms or if women negotiate worse wage bargains with their employers than men using longitudinal data on the hourly wages of portuguese workers matched with balance sheet information for rms we show that the wages of both men and women contain rm specic premiums that are strongly correlated with employer productivity we then show how the impact of these rm specic pay dierentials on the gender wage gap can be decomposed into a combination of bargaining and sorting eects consistent with the bargaining literature we nd that women receive only 90 of the rm specic pay premiums earned by men notably we obtain very similar estimates of the relative bargaining power ratio from our analysis of between rm wage premiums and from analyzing changes in

gender bias and credit access we extract an exogenous measure of gender bias from survey responses by descendants of u s immigrants on questions about the role of women in society we then use data on around 6 000 small business firms from 17 countries and find that in high gender bias countries female entrepreneurs are more likely to opt out of the loan application process and to resort to informal finance even though banks do not appear to actively discriminate against them these results are not driven by credit risk differences between female and male owned firms or by any idiosyncrasies in the set of countries in our sample

do high performance work practices exacerbate or mitigate the gender pay gap the impact of performance oriented work practices on the gender pay gap has been the subject of considerable conjecture but little empirical investigation using the 2004 and 2011 british workplace employment relations surveys the analysis finds that whilst average earnings are significantly higher for men and women across private sector workplaces that have introduced so called high performance work practices the presence of such practices is not associated with a narrowing of the gender pay gap and if anything tends to exacerbate the differential in earnings between men and women data from the 2004 survey suggest that women are more likely to work in high performance workplaces but this is not the case for 2011 there is no evidence that gender segregation is significantly less in high performance workplaces than in workplaces taking a more traditional route policy makers and employing organisations therefore need to be careful in reconciling their performance and equality strategies in particular they need to examine whether the former are truly gender neutral this requires additional measures possibly the introduction of human resource audits in the public and private sectors

wage settlements and wage setting results from a multi level model which dimensions of wage setting differ across establishments applying collective contracts and uncovered establishments the empirical analysis reported here utilizes german linked employer employee data for the years 1990 1995 and 2001 and is restricted to workers without supervisory functions in larger manufacturing firms results show that the expected wage of an average worker is higher in firms applying collective contracts while returns to human capital and the gender wage gap are reduced moreover during the 1990s these effects became stronger

viewpoint male female wage differentials how can that be abstract the paper outlines the main empirical procedures that are used to document the male female wage differential and the extent to which it reflects discrimination it then discusses the evidence on male female wage differentials their existence the extent to which they reflect discrimination their changes over time and the factors that influence the gap particular attention is paid to more recent studies that control for a wider range of conventionally unobserved factors theoretical perspectives are then outlined focusing on the issue of how discriminatory wage differentials can survive given the forces of competition the impacts of policy initiatives are also discussed

reward design and ceo succession in the uk previous research has shown that top executives often rise to the peak of their organizations after a long term employment relationship and that internal promotion to the top is reflected in enhanced baseline salaries using data from a representative sample of uk companies the links between the fixed and variable elements of the chief executive officer s compensation package are examined and whether the appointment has been promoted internally or recruited from outside of the company from this analysis it is concluded that the positive impact on basic pay of elevation to the top job from within the company is not present in total compensation or the structure of pay it also emerges that although tenure does not significantly impact on the structure of pay it does alter total reward through its impact on the value of options granted longer company tenure reduces both the award of share options and the total value of the remuneration package job tenure on the other hand raises the executive s rew

parental beliefs about returns to educational investments the later the better in this paper we study parental beliefs about the returns to parental investments made during different periods of childhood using two independent samples we document that parents perceive the returns to different late investments to be higher than the returns to early investments and that they perceive investments in different time periods as substitutes rather than complements we show that parental beliefs about the returns to investments vary substantially across the population and that individual beliefs are predictive of actual investment decisions moreover we document that parental beliefs about the productivity of investments differ significantly across socioeconomic groups perceived returns to early parental investments are positively associated with household income thereby potentially contributing to the intergenerational persistence in earnings

day ahead price forecasting of electricity markets by mutual information technique and cascaded neuro evolutionary algorithm in a competitive electricity market price forecasts are important for market participants however electricity price is a complex signal due to its nonlinearity nonstationarity and time variant behavior in spite of much research in this area more accurate and robust price forecast methods are still required in this paper a combination of a feature selection technique and cascaded neuro evolutionary algorithm cnea is proposed for this purpose the feature selection method is an improved version of the mutual information mi technique the cnea is composed of cascaded forecasters where each forecaster consists of a neural network nn and an evolutionary algorithm ea an iterative search procedure is also incorporated in our solution strategy to fine tune the adjustable parameters of both the mi technique and cnea the price forecast accuracy of the proposed method is evaluated by means of real data from the pennsylvania new jersey maryland pjm and spanish electricity markets the method is also compared with some of the most recent price forecast techniques

pricing flexible electricity contracts this paper is concerned with pricing of electricity contracts that allow flexible scheduling of the supply or demand of electric energy the contracts are priced based on the principle of no arbitrage variables of the contracts are used to determine arbitrage opportunities and the price of contracts pricing of flexible contracts involves a scheduling policy by representing the spot price with an appropriate stochastic process the scheduling policy can be found using stochastic dynamic programming simulation examples illustrate the tradeoffs between prices and scheduling flexibility

day ahead electricity price forecasting using the wavelet transform and arima models this paper proposes a novel technique to forecast day ahead electricity prices based on the wavelet transform and arima models the historical and usually ill behaved price series is decomposed using the wavelet transform in a set of better behaved constitutive series then the future values of these constitutive series are forecast using properly fitted arima models in turn the arima forecasts allow through the inverse wavelet transform reconstructing the future behavior of the price series and therefore to forecast prices results from the electricity market of mainland spain in year 2002 are reported