reassessing the gender wage gap in madagascar does labor force attachment really matter abstract in the labor economics literature it has been argued that differences in labor force attachment across gender are important to explain the extent of the gender wage gap however measures of women s work experience are particularly prone to errors given discontinuity in labor market participation using proxy measures such as potential experience may lead to biased estimates of the returns to human capital such biases cannot be ignored since these returns are used in the standard decomposition techniques to measure the extent of gender based wage discrimination by matching two original surveys conducted in madagascar in 1998 a labor force survey and a biographical survey we built a unique data set that enabled us to combine the original information gathered from each of them particularly the earnings from current employment and the entire professional trajectories our results lead to a reassessment of the returns to human capital as potential experience always exceeds actual experience for b

the effect of occupational segregation on the relative earnings of black males abstract an earnings model which incorporates racial differences in occupational attainment is employed to investigate sources of the earnings differential between black and white males our results suggest that occupational segregation of black men accounts for nearly half of the observed racial earnings differential

nonparametric bounds on the returns to language skills this paper applies the theoretical literature on nonparametric bounds on treatment effects to the estimation of how limited english proficiency lep affects wages and employment opportunities for hispanic workers in the united states i analyse the identifying power of several weak assumptions on treatment response and selection and stress the interactions between lep and education occupation and immigration status i show that the combination of two weak but credible assumptions provides informative upper bounds on the returns to language skills for certain subgroups of the population adding age at arrival as a monotone instrumental variable also provides informative lower bounds copyright 2005 john wiley sons ltd

losses from effluent taxes and quotas under uncertainty recent theoretical papers by adar and griffin j environ econ manag 3 178 188 1976 fishelson j environ econ manag 3 189 197 1976 and weitzman rev econ studies41 477 491 1974 show that different expected social losses arise from using effluent taxes and quotas as alternative control instruments when marginal control costs are uncertain key assumptions in these analyses are linear marginal cost and benefit functions and an additive error for the marginal cost function to reflect uncertainty in this paper empirically derived nonlinear functions and more realistic multiplicative error terms are used to estimate expected control and damage costs and to identify empirically the mix of control instruments that minimizes expected losses

regulating stock externalities under uncertainty abstract using a simple analytical model incorporating benefits of a stock costs of adjusting the stock and uncertainty in costs we uncover several important principles governing the choice of price based policies e g taxes relative to quantity based policies e g tradable permits for controlling stock externalities as in weitzman rev econom stud 41 4 1974 477 the relative slopes of the marginal benefits and costs of controlling the externality continue to be critical determinants of the efficiency of prices relative to quantities with flatter marginal benefits and steeper marginal costs favoring prices but some important adjustments for dynamic effects are necessary including correlation of cost shocks across time discounting stock decay and the rate of benefits growth applied to the problem of greenhouse gases and climate change we find that a price based instrument generates several times the expected net benefits of a quantity instrument

discrimination in the payment of full time wage premiums this study investigates how many hours must be worked per week in order for workers in different race and gender groups to receive a high hours full time wage premium an analysis of 1989 current population survey data shows that across occupations both white and black men received a full time wage premium for working at least 33 hours per week whereas white women had to work at least 37 hours and black women at least 39 hours to receive the premium controlling for occupation changes the threshold for black women to 33 hours but does not change the results for the other groups the authors find that the observed differences account for at most two percentage points of the wage differentials across race and gender

more on identification in detailed wage decompositions wage decompositions are often used to decompose wage differentials of two demographic groups into differences in characteristics and differences in returns to those characteristics the latter part is used as an estimate of the degree of discrimination a problem with this approach is that the contributions of individual dummy variables to the wage decomposition are not identified this note proposes a simple solution to the identification problem the solution is illustrated with an empirical application to spanish labor market data

racial disparities in job finding and offered wages abstractthe extent to which discrimination can explain racial wage gaps is one of the most divisive issues in the social sciences using a newly available data set this paper develops a simple empirical test that under plausible but not innocuous conditions provides a lower bound on the extent of discrimination in the labor market taken at face value our estimates imply that differential treatment accounts for at least one third of the black white wage gap we argue that the patterns in our data are most naturally rationalized through a search matching model in which employers statistically discriminate on the basis of race when hiring unemployed workers but learn about their marginal product over time

gender wage differentials and discrimination in the new south africa research into discrimination within south africa sa has focused on racial issues with gender issues being largely ignored this study aims to estimate gender wage differentials and through decomposition analysis understand the different problems faced by white black coloured and indian asian in 1995 it is found that white and asian females suffer greater gender discrimination than their black and coloured counterparts which could be a signal to future problems black and coloured females may encounter the largest gender wage differential is faced by white females whilst the lowest is encountered by coloured and black females a possible explanation for this finding is the low subsistence wages that the black and coloured population groups command relative to other population groups

is there a glass ceiling over europe exploring the gender pay gap across the wages distribution using harmonised data from the european union household panel we analyse gender pay gaps by sector across the wages distribution for ten countries we find that the mean gender pay gap in the raw data typically hides large variations in the gap across the wages distribution we use quantile regression qr techniques to control for the effects of individual and job characteristics at different points of the distribution and calculate the part of the gap attributable to differing returns between men and women we find that first gender pay gaps are typically bigger at the top of the wage distribution a finding that is consistent with the existence of glass ceilings for some countries gender pay gaps are also bigger at the bottom of the wage distribution a finding that is consistent with sticky floors third the gender pay gap is typically higher at the top than the bottom end of the wage distribution suggesting that glass ceilings are more prevalent than sticky floors and that these prevail in the majority of our countries fourth the gender pay gap differs significantly across the public and the private sector wages distribution for each of our eu countries

welfare payments and other economic determinants of female migration this article investigates the effects of welfare payments wages and unemployment on women s probability of interstate migration in the united states it also investigates if the income attraction of locations varies with recency of labor market experience welfare gains increase the probability of interstate migration welfare effects are largest for single mothers with small children and stronger among women with no recent labor market experience the welfare effects albeit small are larger than the wage effects the wage effects are weaker among women with no recent work experience ethnic specific analyses suggest differences in migration behavior among anglos african americans and puerto ricans

on the informational superiority of quantities over prices in the presence of an externality in this study we investigate the convexity of the profit function of a regulated firm with respect to the random shocks in the marginal costs and the demand intercept and its implications regarding information disclosure when these shocks are revealed to the firm at a future stage we illustrate that information disclosure is attained when the firm is regulated through the use of a quantity rather than a price instrument to do so we argue that increased convexity obtained under complete information is a sufficient condition as a policy implication we suggest a new argument which favors the use of quantities over prices these implications are more pronounced once we allow for multiple firms

risk aversion and adaptive management insights from a multi armed bandit model of invasive species risk this article explores adaptive management am for decision making under environmental uncertainty in the context of targeting invasive species inspections of agricultural imports i find that risk aversion increases the relative value of am and can increase the rate of exploratory action while calls for am in natural resource management are common many analyses have identified modest gains from this approach i analytically and numerically examine the distribution of outcomes from am under risk neutrality and risk aversion the inspection decision is framed as a multi armed bandit problem and solved using the lagrangian decomposition method results show that even when expected gains are modest asymmetry in the distribution of outcomes has important implications notably am can serve to buffer against large losses even if the most likely outcome is a small loss

changes in wage discrimination against people with disabilities 1984 93 a group of health impaired workers who self report in the survey of income and program participation that their productivity is not affected by their impairment is used to separately measure the effects of discrimination from the effects of poor health on earnings in 1984 and 1993 the results indicate that in 1984 only 3 7 percentage points of the earnings gap is due to discrimination and the amount of discrimination did not decrease by 1993 although discrimination did not change over the 1984 to 1993 period the negative effects of poor health on the earnings of people with disabilities fell substantially

learning and capacity expansion under demand uncertainty a competitive dynamic model of entry into a new industry is set up and both its positive and normative aspects are studied the main assumptions are that entry is sequential that it occurs under imperfect information on the size of the market and that better information becomes available as time goes on the gradual improvement in information is due to the fact that later waves of entrants are able to observe the profitability of earlier entrants the major results reported here under suitable restrictions are that the equilibrium rate of entry is monotonically decreasing over time and that at any given point in time it is smaller than the socially optimal one when a new market opens as a result of a product being newly invented for instance or when an existing market starts to expand uncertainty with respect to its size is likely to prevail as a result of this uncertainty entry of firms into such markets typically will occur in waves some firms will enter initially while others will wait to see the consequences of that initial entry if the experience of early entrants is favourable entry will continue otherwise entry will cease hence with the introduction of a new product two phases are associated the growth phase typified by positive operating profits for existing firms and expansion of productive capacity due to entry of new firms and the mature phase typified by erosion of profits and fixed total productive capacity empiricists estimating the time pattern of investments during the growth phase have found an s shaped diffusion curve see mansfield 1986 and gort and klepper 1982 the purpose of the present paper is to theoretically characterize these time patterns and to investigate their welfare properties any attempt to model the type of entry described above must account for differences in both entry dates and resultant earnings in other words the theory must explain why the realized earnings of different cohorts of firms are not equal often such ex post differences are reconciled by assuming heterogeneity with respect to some latent underlying characteristic managerial ability for instance and attributing differences in earnings to differences in that characteristic in this paper instead earning differentials are attributable to luck only ex ante all firms are technologically identical and equally capable of forecasting market prospects and rationally acting upon those forecasts ex post some firms turn out to have entered at the right time and are for that reason more profitable the model developed in this paper analyzes a parametric example of a sequential entry problem in which the uncertainty over market size is gradually resolved over time in a bayesian setting in an environment of perfect competition and constant returns toscale a free entry equilibrium concept is introduced and the aggregate implications of the time path of investments are derived i then compare this actual time path to the optimum this comparison is interesting because the equilibrium is analysed under the

a simple solution to the identification problem in detailed wage decompositions i introduction oaxaca and ransom 1999 show that the oaxaca decomposition suffers from one nagging conceptual problem the detailed oaxaca decomposition of wage differentials is not invariant to the choice of reference group when dummy variables are used 1 that is if one uses dummy variable s then the detailed coefficients effect attributed to dummy variables is not invariant to the choice of the omitted group s 2 this invariance or identification problem is well known to labor economists and has plagued decomposition and discrimination analysis for a long time 3 this article proposes a simple and practical solution to this identification invariance problem the solution is based on the intuitive idea that if alternative reference groups yield different estimates of the characteristics and coefficients effects for each individual variable then it is natural to obtain estimates of the two effects for every possible specification of the reference groups and take the average of the estimates of the two effects with various reference groups as the true contributions of individual variables to wage differentials a close inspection shows that averaging the two effects in the decomposition equation with varying reference groups the averaging approach is equivalent to finding average estimates of constant and dummy variables in wage equations with varying reference groups and then using the average estimates to calculate the oaxaca decomposition equation researchers may react a bit negatively to this suggestion because it could be quite cumbersome and tedious to estimate wage equations permuting the choice of reference groups this article shows that there is no need to estimate multiple wage equations one set of regression estimates is sufficient to resolve the identification problem in the detailed decompositions that is the average of the estimates with varying reference groups can be easily calculated by using only one set of regression estimates with any specific reference group s the identification problem for the detailed decomposition disappears once the contribution of the dummy variables and the constant in the regression equations are identified 4 ii identification problem and invariant decomposition an illustration to understand what the identification problem in the detailed wage decomposition is i will first illustrate the problem with a simple example suppose that there are three categories and the regression equation has only a constant and two dummy variables on the right hand side where the reference group is the first category 5 that is 1 y sub i alpha sub i 3 summation over k 2 d sub ki beta sub ki e sub i where y is log wages and i a or b for two comparison groups coefficients for two dummy variables taking category one as the reference group are estimated using ordinary least squares ols regression and are reported in the second column of table 1 for sample a and for sample b note that the coefficient of the reference group category 1 is restricted to zero similarly i may change my reference group specification and estimate the wage equation two more times the estimates taking category 2 or 3 as the reference group are reported on the next two columns because i have three sets of estimates with varying reference groups i may decompose the wage differentials 0 15 0 76 0 61 into characteristics and coefficients effects three times the characteristics effect delta sub x 1 and coefficients effects delta sub beta 1 are specified as follows when category 1 is the reference group delta sub x 1 summation sup 3 sub k 2 bar d sub ka bar d sub kb beta sub kb and delta sub beta 1 alpha sub a alpha sub b summation sup 3 sub k 2 bar d sub ka beta sub ka beta sub kb

labour market discrimination are there significant differences between the various decomposition procedures economists have usually called the proportion of the average wage gap between two groups which could not be explained by individual characteristics discrimination recently several theories have suggested that labour market discrimination on the one hand lowers the wages of the minority group and on the other leads to higher pay for the majority group in a recent survey of the various methods used to decompose the overall wage differential between two groups oaxaca and ransom compared five approaches in the contexts of race and gender discrimination this paper checks whether there are significant differences between the various decomposition procedures which have appeared in the literature the tests are based on bootstrap techniques

occupational segregation and selectivity bias in occupational wage equations an empirical analysis using irish data the gender wage effects of occupational segregation are assessed within the framework of occupational attachment and wage equations this paper exploits the modified index number approach suggested by brown et al 1980 and used recently by miller 1987 however neither of these papers allowed for the potential effects of selectivity bias in occupational wage equations in this study selectivity bias is corrected for using the method outlined in lee 1983 this allows for the effects of occupational selectivity buas on the gender wage gap to be assessed the findings for this sample of young lrish workers suggest that the greater part of the female wage disadvantage lies in intraoccupational wage differences furthermore selectivity bias is found to be important for a number of occupational categories

a decomposition method on employment and wage discrimination and its application in urban china 2002 2013 abstract labor market discrimination is an important issue in developing countries where path dependent institutions have been dominant while effective institutional arrangements and policies have been hidden by local customs and culture however the existing applications of classical blinder oaxaca decomposition face criticism for their imprecise understanding of the factors affecting institutional discrimination in labor markets as well as for their lack of power in formulating well targeted anti discrimination policies following oaxaca 1973 we propose a new method to decompose the total discrimination index tdi to analyze employment and wage discrimination in the labor markets of developing countries the tdi is decomposed into the employment discrimination index edi and the wage discrimination index wdi then into the underpayment index to majorities upi and the overpayment index to minorities opi we apply this method to the institutional discrimination against rural migrants in china s urban areas using national representative data from 2002 to 2013 we have found that 1 the tdi increased quickly after china entered the wto then dropped after anti discrimination policies were implemented 2 the tdi is mainly determined by the upi while the tdi s fluctuation is mainly determined by the wdi our method provides insights into the changing composition of employment and wage discrimination and their respective labor market outcomes in developing countries as a result appropriate policy measures may be developed accordingly

cross national price differences for pharmaceuticals how large and why bilateral drug price and quantity indexes based on comprehensive data for seven countries us canada france germany italy japan and the uk refute the conventional wisdom that us drug prices are much higher than elsewhere for laspeyres us weighted indexes previous drug price comparisons are biased by unrepresentative samples and unweighted indexes quasi hedonic regression shows that cross national price differences reflect differences in product characteristics and in their implicit prices which reflect the regulatory regime strict price regulation systematically lowers prices for older molecules and globally diffused molecules generic competition lowers prices in less regulated regimes which also have more price elastic demand

correlated uncertainty and policy instrument choice abstract for two decades environmental economists have generally maintained that benefit uncertainty is irrelevant for choosing between price and quantity instruments but that cost uncertainty matters with the identity of the efficient instrument depending upon the relative slopes of the marginal benefit and cost functions but in the presence of simultaneous correlated uncertainty such policy instrument recommendations may be inappropriate with plausible values of relevant parameters the conventional identification of a price instrument will be reversed to favor instead a quantity instrument the opposite reversal from the choice of a quantity instrument to a price instrument seems less likely to occur

racial disparities in life insurance coverage we evaluate the extent to which there are racial disparities in life insurance coverage using multiple years of the survey of income and program participation between 2001 and 2010 we find that african americans hold significantly more life insurance after controlling for other factors especially employer sponsored and whole life insurance we demonstrate that our findings diverge from prior work because we examine all households instead of focusing exclusively on married and cohabitating households the findings on life insurance coverage and composition imply that earnings shocks due to mortality are not a contributing factor to racial disparities in wealth

native immigrant wage differentials and occupational segregation in the greek labour market this article explores native immigrant wage differentials in the greek labour market data from the most recent greek household budget survey 2004 05 were employed four alternative occupational categories were considered and occupational choice was explicitly modelled controlling for occupational selectivity occupation specific wage regressions for representative samples of employed native and immigrant workers were estimated and an augmented decomposition technique was utilized to analyse inter and intra occupation wage differentials the obtained results demonstrate that roughly 48 of the average wage differential cannot be explained by differences in observed characteristics and that the larger component of this unexplained part is due to asymmetrical occupational access by native and immigrant workers

dynamic environmental policy with strategic firms prices versus quantities abstract environmental regulators often have imperfect information about regulated firms abatement costs in this paper we compare taxes and emissions permits in a dynamic setting in which firms behave strategically the regulator updates policy over time based upon previous aggregate industry performance assuming that firms are not strategic we find that strategic firms facing an emissions tax have an incentive to overabate in order to obtain a lower tax in the future firms that trade emissions permits have a strategic incentive to reveal an artificially high permit price to obtain more permits in the future whether permits or taxes are preferred from a welfare standpoint depends upon how permit prices are determined taxes generate higher welfare when the low cost firm sets the permit price but permits generate higher welfare when the high cost firm sets the permit price

a meta analysis of the international gender wage gap abstract since the early 1970s a number of authors have calculated gender wage differentials between women and men of equal productivity this meta study provides a new quantitative review of this vast amount of empirical literature on gender wage differentials as it concerns not only differences in methodology data and time periods but also different countries we place particular emphasis on a proper consideration of the quality of the underlying study which is done by a weighting with quality indicators the results show that data restrictions i e the limitation of the analysis to new entrants never marrieds or one narrow occupation only have the biggest impact on the resulting gender wage gap moreover we are able to show what effect a misspecification of the underlying wage equation like the frequent use of potential experience has on the calculated gender wage gap over time raw wage differentials worldwide have fallen substantially however most of this decrease is due to better labor market endowments of females

wage discrimination occupational segregation and visible minorities in canada the earnings gap between each of whites asians and blacks is decomposed into the effects on earnings of productivity related characteristics wage discrimination and occupational segregation unlike previous canadian studies this paper analyses the relative economic position of both immigrant and native born visible minorities and explicitly incorporates the effect of discrimination in occupational attainment on the earnings gap the results indicate that policies aimed at increasing the ethnic representation across occupational categories would be effective only for black men anti discrimination legislation aimed at decreasing the earnings gap between visible minority and white women should have a dual focus they should aim at reducing the inter occupational wage discrimination they should provide training programs to extend the career ladders confronting ethnic minority women

wage discrimination against handicapped men and women the extent of discrimination against handicapped men and women is estimated in this paper observed wage differentials are corrected for selectivity bias the results indicate that almost one third of the wage differential for men and close to one half for women can be attributed to discrimination interestingly handicapped women are also subjected to sex discrimination

panel estimates of the earnings gap in norway do female immigrants experience a double earnings penalty this study explores the possibility that being both a female and an immigrant will impose an earnings disadvantage on immigrant women in norway well known techniques are used to decompose the earnings gap between norwegian men and immigrant women into portions attributable to productivity differentials portions attributable to a gender effect and portions attributable to an ethnic effect the analysis supports the following conclusions first there is evidence of a double negative effect on female immigrant earnings second gender effect is more important than ethnic effect finally the discrimination estimates are robust to the alternative methods used in decomposing norwegian men immigrant women earnings gap

recent trends in white black earnings differentials abstract this paper tracks white black earnings differentials between 1967 and 1986 using panel data separate estimates are computed for males and females corrections for selectivity bias have been made and neumark s modified version of the oaxaca procedure is used to derive estimates of the earnings gap the finding of secular decline in the white black earnings gap is re established

immigrants minorities and labor market competition this paper investigates the extent of labor market competition among immigrants minorities and the native population an analysis of 1980 u s census data reveals that immigrants tend to be substitutes for some labor market groups and complements for others the effects of shifts in immigrant supply on the earnings of native born men are however very small on the other hand increases in the supply of immigrants do have a sizable impact on the earnings of immigrants themselves an increase of 10 percent in the supply of immigrants for example reduces the immigrant wage by about 10 percent

distributional changes in the gender wage gap using panel study of income dynamics psid data the authors analyze changes in wage differentials between white men and women over time and across the entire wage distribution the authors decompose distributional changes in the gender wage gap to assess the contribution of observed characteristics measuring individual productivity they find that the gender wage gap narrowed by 16 at the lowest decile and by less than 5 at the highest decile the decomposition results indicate that changes in the gender wage gap are mainly attributable to changes in educational attainment at the top of the wage distribution with a sizable part due to work history changes at the bottom the findings further reveal that the accuracy of the results depends on the direction in which the decompositions are performed

trends in earnings differentials by gender 1971 1981 this paper clarifies trends in relative earnings by sex over the decade 1971 1981 and decomposes these trends to determine which factors contributed to a decline and which to an increase our analyses are based upon data from the annual demographic files of the current population survey for 1972 and 1982 this study is unique in that it estimates earnings functions in each year which are corrected for selectivity bias it is found that such a correction markedly raises the progress of white women relative to men among blacks the impact of the selectivity bias correction was to substantially lower the relative earnings increase of women however the coefficients on the selectivity variable were not significant the findings suggest declining sex role specialization and discrimination as conventionally measured over the decade on the other hand contrary to expectations the total effect of variables reflecting the sex composition of the individuals occupation worked to widen the sex differential over the period the sex differential was also adversely affected by a decline in the relative return to education especially for whites authors modified

human capital discrimination and the gender wage gap in bangladesh summary this paper investigates changes in the gender wage gap in bangladesh over the period 1999 2009 the gap in average wages between men and women decreased by 31 over this period this paper shows that a key driver of this change was an improvement in female educational qualifications it also demonstrates that the gender wage gap across the wage distribution narrowed much more at the lower end of the wage distribution than at the upper end it attributes this mainly to a decline in discrimination against women implications for policies aimed at more equal access to education and enforcement of equal pay legislation in bangladesh are also identified

the gap between male and female pay in the spanish tourism industry abstract this paper analyzes wage differentials between male and female workers in the spanish tourism industry using a large administratively matched employer employee data set obtained from a representative sample of companies this allows us to control for unobserved firm specific factors likely to affect the magnitude of the gender wage gap our findings indicate that male workers earn on average 6 7 higher monthly wages than their socially comparable female counterparts in particular the type of contract held the qualifications required for the job and the specific sub sector of employment are very important variables in explaining this gender wage difference we also find that only around 12 of the mean wage difference in the tourism industry cannot be explained by differences in observable characteristics which is well below the average for the rest of the industries in spain 87 our interpretation is that minimum wage legislation provides a particularly effective protection to women in the tourism industry which is characterized by a large number of low wage earners

male white black wage gaps 1979 1994 a distributional analysis 1 introductionnumerous studies show that during the 1980s the mean white black wage gap among new entrant 0 10 years of potential experience males expanded 1 juhn murphy and pierce 1991 jmp attribute the mean gap s expansion to a widening of the overall u s wage distribution caused by a host of economy wide race neutral changes that led to labor demand shifts toward better educated and better skilled workers regardless of race because african americans tend to be at lower levels of the overall skill distribution the shifts adversely impacted african american men more than white men leading to an expansion in the mean wage gap to arrive at this conclusion jmp decompose the expansion in the mean new entrant wage gap into four components the first two components measure the wage gap s increase because of a widening in observable racial differences in measured characteristics and their prices for example educational attainment and the returns to education the third component captures the contribution of growing racial discrimination and widening differences in unmeasured skills to the wage gap s expansion this term s contribution is measured by the drop in the mean percentile rank of blacks in the white residual wage distribution the fourth component identifies the role of increases in the prices of unmeasured skills and is measured by the increase in the variance of the white residual wage distribution when applied to the march annual demographic files of the current population survey jmp find that from 1979 to 1987 increases in the price of unmeasured skills explain all of the new entrant mean wage gap s expansion indicating that factors that adversely impacted less skilled workers regardless of race are the primary cause of the wage gap s expansion in related work reardon 1997 uses a national sample of white and african american men from the 1980 and 1990 decennial censuses and shows that the mean racial wage gap s expansion is caused by increased variance in the distribution of residual wages generated by labor demand shifts toward high skilled whites and away from medium skilled whites and high skilled african american men the wage gap expands because high skilled african american men earn wages that are similar to those of whites in the middle and upper third of their wage distribution the labor demand shifts led to a stretching or increased variance in the wage distribution that favored high skilled whites relative to high skilled african americans and medium skilled whites this paper makes several contributions to the literature on racial wage gaps and the technical literature on wage decompositions first i examine whether jmp s 1991 results hold up when the analysis is disaggregated by experience and educational attainment this is an important extension for two reasons bound and freeman 1992 rodgers 1997a and others have found that the racial wage gap among high school graduates and particularly among college graduates expanded significantly after the late 1970s over the same time period the variance of wages within these educational categories increased second it is important to determine the extent to which racial inequality that was generated while a cohort was a new entrant persists as it ages the paper s technical innovation is the development of a distribution or skill specific decomposition that identifies whether the stretching of the white wage distribution uniformly contributes to an expansion in racial inequality at all skill levels or quantiles of the wage distribution or whether the contribution of the wage distribution s stretching is specific to a skill level for example does the increase in the price of unmeasured skills explain a greater portion of the increase in the racial wage gap between high skilled african americans and whites than it does between medium skilled african americans and whites

theory of the firm past present and future an interpretation hence even if the partial equilibrium analyst knows full well that the actual situation is not really a competitive one he probably will still make a first try using the competitive model with good old fashioned profit maximization and if the results appear too odd appropriate qualifications may still be able to take care of them more simply than if he had started with a cumbersome managerial model in saying this i am showing my bias 18 p 30

the employer size wage gap evidence for britain university of edinburgh and university of sussexfinal version received 5 may 1992 this paper presents estimates for the employer plant size wage gap for britain using anordered probit model selectivity corrected wage equations are estimated for three plant sizecategories in a comparison between plants with more than 500 workers and those with lessthan 100 a wage gap estimate of over 17 per cent is detected the wage effects of unionizationin plants with more than 500 workers is reported as insignificant in contrast to evidenceprovided by idson and feaster 1990 for the united states no evidence of non randomsorting of workers across plant size is detected

measuring the gender wage gap a methodological note we propose to estimate the blinder oaxaca decomposition by a single equation model augmented with interactions between the group membership and other predictors the relative importance of predicto

wage determination of registered nurses in proprietary and nonprofit nursing homes this study explores why registered nurses employed in nonprofit nursing homes earn higher wages than those employed in proprietary facilities previous studies have explained this finding in a property rights context where higher wages were posited to result from the weaker incentives for cost minimization accompanying nonprofit status this paper tests an alternative explanation of sectoral wage differences which is predicated on the reason for the coexistence offor profit and nonprofit firms in a given industry informational constraints concerning the quality of care are posited to cause the long term health care market to fail to provide care at the upper levels of a quality of care continuum nonprofits are viewed as a response to this form of market failure acting to fulfill customers demand for higher quality and higher cost long term care with attendant demand for higher quality nurses than in for profit homes both the observed sectoral pattern in selectivity and wage decompositions based on selectivity corrected wage regressions call into question the property right explanation yet are consistent with an asymmetric information explanation

the effects of competition and equal treatment laws on gender wage differentials discrimination if it is inefficient can be eliminated by competition in most countries it is also forbidden by law this paper evaluates the influence of economic and legal factors on the portion of male female wage differentials that is not explained by other worker characteristics and may be due to discrimination we use a new international data set of suitable gender wage gap measures constructed from the results of existing studies meta analysis of the data shows that increased competition and adoption of international conventions concerning equal treatment laws both reduce gender wage gaps while legislation that prevents women from performing strenuous or dangerous jobs tends to increase it doris weichselbaumer and rudolf winter ebmer

regulation of stock externalities with correlated abatement costs we study a dynamic regulation model where firms actions contribute to a stock externality the regulator and firms have asymmetric information about serially correlated abatement costs with price based policies such as taxes or if firms trade quotas efficiently the regulator learns about the evolution of both the stock and costs this ability to learn about costs is important in determining the ranking of taxes and quotas and in determining the value of a feedback rather than an open loop policy for a range of parameter values commonly used in global warming studies taxes dominate quotas regardless of whether the regulator uses an open loop or a feedback policy and regardless of the extent of cost correlation

asymmetric labor market reforms effects on wage growth and conversion probability of fixed term contracts the authors investigate the impact of a change in employment protection laws in portugal that increased the maximum legal duration of fixed term contracts they find that this reform led to a reduction in the probability that a worker on a fixed term contract would be converted to a permanent contract in addition those workers who had their contracts converted experienced a significantly higher hourly wage growth at the time of conversion and faced a lower reduction in wage growth during the years in which the changed legislation was in force consequently the implementation of this law led to a 27 increase in the wage growth differential between the two contracts the findings are based on an endogenous regime switching model using rich administrative linked employer employee data

a selectivity model of employer size wage differentials this article investigates wage differentials for employees of different size firms utilizing an econometric methodology that allows the size of employer to be treated as endogenous in the context of discrete ordered employer size data as a result we are able to estimate i employer size wage gaps which are corrected for selectivity bias and ii the magnitude and direction of the selection bias decompositions of the resulting wage differentials are computed with comparisons of the conditional on sorting across employer size and unconditional wage gaps

a distributional analysis of the gender wage gap in bangladesh this article empirically investigates the gender wage gap in bangladesh during the period 2005 2009 applying unconditional quantile regression models the article demonstrates that women are paid less than men throughout the wage distribution and the gap is higher at the lower end of the distribution discrimination against women is the primary determinant of the wage gap the article also demonstrates that the observed gender wage gap is likely to be underestimated if we ignore selection in full time employment a number of policy implications are discussed

labor market discrimination against men with disabilities in the year of the ada the americans with disabilities act ada provides civil rights protections to persons with disabilities but the debate that preceded passage of the act was not based on empirical estimates that could be used to measure its performance this article estimates the extent of wage discrimination against men with disabilities in 1990 providing a reference that can be used to evaluate the impact of the ada the results show large productivity standardized wage differentials between disabled and nondisabled men that are weakly correlated with the strength of prejudice against different impairments physical limitations explain part but not all of the wage differentials the results also show that low employment rates are a more serious problem than wage discrimination for workers with disabilities provide civil rights protections to persons with disabilities the act s supporters promised that it would increase the employment and wages of persons with disabilities and reduce their dependency on public programs the promises were not based on empirical estimates of discrimination and there is no empirical base against which to compare the promises to the performance of the ada this article estimates the extent of wage discrimination against men with disabilities in 1990 providing a reference that can be used to evaluate the impact of the act the ada does not grant a right to employment to all persons with disabilities it requires that persons with disabilities be able to perform the jobs they seek subject to reasonable accommodations by employers this article therefore considers men who are able to work even though their health limits the amount or kind of work they can perform the ada s provisions assume that low wages and low employment rates for persons with disabilities are the result of discrimination caused by prejudice prejudice against persons with disabilities is well documented but so are the limiting effects of physical impairments on workplace productivity hahn 1987 margolis and shapiro 1987 clogston 1990 the core of the debate concerning the value of the ada is whether the poor labor market outcomes of persons with disabilities are the result of discrimination or the limiting effects of health con

gasoline price uncertainty and the design of fuel economy standards abstract what are the implications of gasoline price volatility for the design of fuel economy policies i show that this problem has a strong parallel to weitzman s 1974 classic model of using price or quantity controls to regulate an externality changes in fuel prices act as shocks to the marginal cost of complying with the standard assuming constant marginal damages from fuel consumption an application of weitzman 1974 implies that a fixed fuel economy standard reduces expected welfare relative to a price policy such as a feebate or equivalently a fuel economy standard that is indexed to the price of gasoline when the regulator is constrained to use a fixed standard i show that the usual approach to setting the standard equate expected marginal compliance cost to marginal damage is likely to be sub optimal because the standard may not bind if the realized gasoline price is sufficiently high instead the optimal fixed standard will be relatively relaxed and may be non binding even at the expected gasoline price finally i show that although an attribute based standard allows vehicle choices to flexibly respond to gasoline price shocks the resulting distortions imply that the optimal fuel economy standard is not attribute based

disentangling the effect of arthritis on earnings a simultaneous estimate of wage rates and hours worked poor health affects both wage rates and hours of work here we develop a procedure for examining the separate impact of a specific chronic disease arthritis on wages and hours worked and then translate these results into earnings our methodology provides a consistent approach for measuring how a specific chronic disease affects total earnings as well as its component parts we find that arthritis affects wage rates and hours worked differently and the pattern of these effects differs considerably between men and women

gender differences in observed and offered wages in canada 1980 according to the 1981 census of canada the female rate of pay is 30 percent less than the male rate the average female wage offer however is only around one half of that received by males other things being equal slightly more than one half of the difference in observed wages can be explained by diffe rences in wage related characteristics between males and females two fifths of the disparity between wage offers can be explained by the same set of factors analysis of the distribution of wage offers indicates greater wage inequality in the canadian labor market than suggested by study of observed wages

the effectiveness of private versus public schools the case of indonesia abstract in most developing countries education is largely publicly provided however the scarcity of public funds and recent evidence of public school inefficiency calls for an examination of the dominant role of the state in this paper we use data from indonesia to examine the effectiveness of public versus private schools we use labor market earnings as our measure of effectiveness controlling for observable personal characteristics and school selection we find that graduates of private secondary schools perform better in the labor market this is contrary to the widely held belief in indonesia that public secondary schools are superior our findings coupled with the existing literature on private school cognitive and cost advantages suggest the need for greater private participation in the education sector

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

the endogeneity of union status an empirical test an unsettled issue in the literature relating to the relative wage effect of unions is the appropriate treatment of union status in a wage determination model in the context of a three equation model determining union membership and union and nonunion sector wage rates this paper presents an instrumental variables iv procedure for estimating the parameters of the wage equations and a test of the exogeneity of union status using the hausman specification test an advantage of our iv procedure in comparison to the widely used inverse mill s ratio procedure is that our procedure is a distribution free estimator whereas the inverse mill s ratio estimator hinges in the assumption that the error term of the choice equation is normally distributed using data for a sample of middle aged white workers we estimate the parameters of the union and nonunion wage equations with both procedures on the key question of the endogeneity of union status the hausman test decisively rejects the null hypothesis of exo

taxes and quotas for a stock pollutant with multiplicative uncertainty we compare taxes and quotas when firms and the regulator have asymmetric information about the slope of firms abatement costs damages are caused by a stock pollutant we calibrate the model using cost and damage estimates of greenhouse gasses taxes dominate quotas as with additive uncertainty this model with multiplicative uncertainty allows us to compare expected stock levels under the two policies and to investigate the importance of stock size and the magnitude of uncertainty on the policy ranking

reassessing the male female wage differential a fixed effects approach the vast literature on the subject of the male female wage differential has shown that despite dramatic structural and behavioral changes in the labor supply of women a sizeable wage differential exists 19 2 9 6 4 o neill 16 s92 finds that a sex differential of about 40 as measured by full time annual earnings has persisted in the u s for the last four decades but while few doubt the existence of the wage gap there is considerable controversy regarding the role of the factors explaining the gap the conventional approach of economists has been to estimate earnings as a function of various socio economic characteristics the observed wage gap is decomposed into a part explained by productivity related factors and an unexplained residual traditionally labelled as discrimination while it is possible that the unexplained variation in earnings is the result of discrimination it is also possibly the result of model misspecification 2 in this present paper we address the misspecification that could possibly arise from omitted variables endogeneity and sample selection while these issues have been considered in the context of women s labor supply functions they have largely been ignored in studies on the wage differential 12 13 we approach the problem of omitted variables by formulating a fixed effects model in this way productivity related factors that are difficult to measure or have unsuitable proxies are netted out from the earnings equation furthermore some of the variables that are used to explain wages are themselves the outcome of discrimination in particular the labor market experience of a woman is dependent on her wages earned here we address the endogeneity that such a cause and effect relationship may bring about a third difficulty arises because a typical sample of working women is a non random selection of the female labor force giving rise to the problem of sample selection bias heckman s 12 213 17 procedure is used to formulate a sample selection model of earnings the organization of this paper proceeds as follows section ii begins with the traditional model of earnings and then develops an extended model which consolidates the issues of omitted variables endogeneity and sample selection section iii contains the empirical results of the

the effects of college education on the male female wage differential researchers disagree on the reasons for the observed wage differential between males and females in the united states while some researchers attribute much of the wage differential to differences in endowments of productivity characteristics between the sexes others attribute it to discrimination in the labor market most researchers who believe that differences in endowments of productivity characteristics explain a large part of the wage gap between the sexes do not completely discount the existence of discrimination in the labor market even though there is a general agreement that discrimination accounts for part of the male female wage differential the proportion of wage differential found to be attributable to discrimination in research work depends upon the method of decomposing the wage differential and whether the researcher controls for occupational and industrial differences most estimates of the male female wage differential have used the decomposition analysis popularized by oaxaca 11 and blinder 2 this approach to decomposing the male female wage differential assumes that in the absence of discrimination the equilibrium wage equals either the male wage rate or the female wage rate depending on whether the male or female wage structure is used as the basis for decomposition of the wage differential unless this is true the discrimination component of oaxaca s approach to the decomposition of the wage differential is not consistent with becker s 1 competitive market discrimination coefficient for labor of different productivities defined as the difference between the observed wage ratio and the wage ratio that would prevail in the absence of discrimination if females are paid less than the value of their marginal product and males are paid more than the value of their marginal product as a result of discrimination elimination of discrimination will result in an equilibrium wage that is likely to be less than the male wage and greater than the female wage any decomposition analysis that uses either the female wage or the male wage as the reference wage will over or underestimate the effects of discrimination in explaining the male female wage differential this has led butler 3 to argue that it is impossible to

labor market discrimination against hispanic and black men h ispanic american men have lower average wage rates than white non hispanics in 1975 the average white non hispanic male wage earner in the united states earned 5 97 an hour mexican men earned 4 31 72 as much as white non hispanics puerto rican men earned 4 52 76 as much and cuban men earned 5 33 89 as much as white non hispanics by way of comparison black men s average wages in 1975 were 4 65 78 of the white male wage several possible reasons for the hispanics lower wages come to mind among them are age and education geographic location immigration language difficulties and discrimination for example as shown in table 1 mexicans and puerto ricans are younger on average than the white non hispanic population and earnings tend to rise with age hispanics have lower average levels of education than white non hispanics and wages are positively associated with education many mexican americans live in the southwest where prices are relatively low moreover hispanics are more likely to be recent immigrants and to lack fluency in english than white non hispanics and so to be at a disadvantage in the labor market in addition there is a widespread belief that hispanics suffer from employment discrimination and cannot obtain the wages that their human capital would command if they were non hispanic whites how much of the wage differentials described above are due to each of these factors and to other inter group differences in wage related characteristics in particular how much impact does labor market discrimination have on the average hispanic man s wage and how does this compare with discrimination against blacks this paper provides answers to these questions a few other efforts have been made to analyze the relative earnings of hispanic and white nonhispanic men using 1960 and 1970 census data fogel 1966 poston and alvirez 1973 poston alvirez and tienda 1976 long 1977 and gwartney and long 1978 we use more recent data from the 1976 survey of income and education this data set enables us to measure wage rates more accurately and to specify the wage function more completely than does the census unlike previous analysts in estimating the wage function we take account of possible selectivity bias due to the distinction between average wage offers and average observed wages thus we hope to obtain a more accurate and up to date measure of labor market discrimination against hispanic men section ii explains the method used to separate the minority white non hispanic wage differential into the portions due to differences in average characteristics and the portion due to differences in unobserved factors and discrimination taking into account the possibility of selectivity bias in the observed wage sample section iii describes the data used in the study and the specification of the wage equation the breakdown of the observed wage differentials into components due to differences in participation in the wage and salary sector local price levels average characteristics and discrimination are presented in section iv section v summarizes our findings and discusses their implications for efforts to improve the economic situation of hispanics in the united states

the effect of unions on the employment of blacks hispanics and women to investigate whether unions have helped or hindered the employment prospects of minorities and women the author analyzes data on 1 273 california manufacturing plants for the period 1974 80 the

entrepreneurial women and men two different species the ability of the self employed to create additional job opportunities is a fundamental concern given the huge increases in public resources targeted at new venture creation in the u k and other countries since 1979 this study initially concentrates on identifying differences in the personal and demographic characteristics of women and men in four potential labour market states namely unemployment waged employment single self employment and job creating self employment it then goes on to consider labour market transitions over a four year period between 1991 and 1995 the key findings are firstly that women entrepreneurs are better educated than their male counterparts and secondly that flows into self employment were considerably higher for men than women furthermore proportionately three times as many male self employed in 1991 had gone on to become job creating self employed by 1995

the definition of part time employment a switching regression model with unknown sample selection rejecting the standard less than thirty five hours per week categorization of part time workers this paper offers an empirically justified definition of the part time employed the definition is based on the distinction through wage payments that employers make between a high hours full time and a low hours part time group of workers a switching regression model of wage equations with deterministic but unknown sample selection is estimated resulting in a significant split between high hours and low hours workers that is higher than the standard definition wage differentials are calculated and decomposed and estimates from the structural choice model are presented copyright 1991 by economics department of the university of pennsylvania and the osaka university institute of social and economic research association

strategic climate policy with offsets and incomplete abatement carbon taxes versus cap and trade abstract this paper provides a first analysis of a policy bloc of fossil fuel importers which implements an optimal climate policy faces a non policy fringe of other fuel importers and an exporter bloc and purchases offset from the fringe we compare a carbon tax and a cap and trade scheme for the policy bloc in either case accompanied by an efficient offset mechanism for reducing emissions in the fringe the policy bloc is shown to prefer a tax over a cap since only a tax reduces the fuel export price and by more when the policy bloc is larger offsets are also more favorable to the policy bloc under a tax than under a cap the optimal offset price under a carbon tax is below the tax rate while under a cap and free quota trading the offset price must equal the quota price the domestic carbon and offset prices are both higher under a tax than under a cap when the policy bloc is small when the policy bloc is larger the offset price can be higher under a cap fringe countries gain by mitigation in the policy bloc more under a carbon tax since the fuel import price is lower

threatening thresholds the effect of disastrous regime shifts on the non cooperative use of environmental goods and services abstract this paper presents a tractable dynamic game in which agents jointly use a resource the resource replenishes fully but collapses irreversibly if the total use exceeds a threshold the threshold is assumed to be constant but its location may be unknown consequently an experiment to increase the level of safe resource use will only reveal whether the threshold has been crossed or not if the consequence of crossing the threshold is disastrous i e independent of how far the threshold has been exceeded it is individually and socially optimal to update beliefs about the threshold s location at most once the threat of a disastrous regime thereby facilitates coordination on a cautious equilibrium if the initial safe level is sufficiently valuable the equilibrium implies no experimentation and coincides with the first best resource use the less valuable the initial safe value the more the agents will experiment for sufficiently low initial values immediate depletion of the resource is the only equilibrium when the regime shift is not disastrous but the damage depends on how far threshold has been exceeded experimentation may be gradual

the economics of immigration this literature review concerns the impact of immigration on the economy of the host country focusing on the experience of the united states the emphasis is on the period from the 1970s to the 1990s the author shows that research earlier in this period generally concluded that the economic effects of immigration were positive but that more recent research on later migrations have generally concluded that immigration may be having an adverse effect on the earnings of native unskilled workers and be placing an increased burden on welfare programs the importance of such economic analysis for the formulation of appropriate migration policies is stressed

gender wage differences in malaysia parametric and semiparametric estimation this paper is an empirical study on the labor force in peninsular malaysia parametric and semiparametric estimated wage equations which correct for sample selection bias are used to assess the returns to education and extent of gender discrimination to estimate in the semiparametric case the wage equation intercept which is needed for the oaxaca wage decomposition consistently we apply the newly developed andrews schafgans andrews d w k schafgans m m a 1998 semiparametric estimation of the intercept of a sample selection model review of economic studies 65 497 518 estimator the results suggest that discrimination favoring men in malaysia is still quite prevalent while for malays the sons of the soil the strong level of discrimination favoring malay men is negated by the semiparametric estimation results

dynamic taxes and quotas with learning we compare dynamic taxes and quotas when a regulator and non strategic firm have asymmetric information the regulator learns by using either a tax or a quota that can be slack with a tax the information asymmetry is resolved in one period optimal learning using a quota is less transparent but we show that learning never takes place gradually in the first period the regulator either acts myopically or he tries to improve his information but he never experiments in subsequent periods we use this result to assess the informational advantage of taxes compared to quotas under asymmetric information

disability and the labour market an analysis of british males this paper attempts using data from the british labour force survey 1996 to examine to what extent differences in labour market outcomes between able bodied and disabled men may be attributed to differences in endowments of human capital and associated productivity differences both labour force participation and selectivity corrected human capital equations are estimated and decomposition techniques applied to them using the methodology of baldwin and johnson baldwin m johnson w g 1994 labor market discrimination against men with disabilities journal of human resources xxix 1 winter 1 19 the employment effects of wage discrimination against the disabled are also estimated evidence of both substantial wage and participation rate differences between able bodied and disabled men are found which have implications for the operation of the 1995 disability discrimination act

the boundary between planning and incremental budgeting empirical examination in a publicly owned corporation this paper is a study within the field of public budgeting it focuses on the capital budget and it attempts to model and analyze the capital budgeting process using a framework previously developed in the literature of incremental budgeting within this framework the paper seeks to determine empirically whether the movement of capital expenditure budgets can be represented as the routine application of incremental adjustments over an existing base of allocations and whether further forward looking adjustments can be found its setting is a british publicly owned corporation the paper proposes an extended model of incremental budgeting which explains absolute change in budget allocations by introducing variables expressing current expenditure outturn over or under spend of previous allocations previous budgetary cuts and wider financial pressures in the corporation s environment planning variables are then included in an attempt to uncover purposive behavior the analysis reveals different patterns of allocation for peripheral and for mainstream investments the former appear to grow in an incremental fashion with no response to leading planning variables the latter exhibit responsiveness to planning variables and allocations do not take the form of routine incremental adjustments to the existing base an interpretation of the results is undertaken the analysis points to revisions of existing theory and suggests fresh ways of looking at and systematically modeling the organizational system of resource allocation

job search and immigrant assimilation an earnings frontier approach this study examines labor market assimilation by measuring the information utilized by immigrants during job search assimilation is assumed to occur whenever such information increases with length of residence in the united states and repeated job searches the authors assert that information utilized during job search reduces differentials between actual and potential maximum attainable earnings coauthors are henry w herzog jr richard a hofler and alan m schlottmann copyright 1992 by mit press

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

incorporating the causes of occupational differences in studies of racial wage differentials this study provides a basic framework for incorporating the causes of occupational differences into analyses of racial wage differentials separating the influences of personal characteristics occupational choice and hiring discrimination on occupational attainment provides measures of the contributions of each to the racial pay gap the paper also considers the potential for bias in the wage equation estimates arising from self selection into occupations there are two generalfindings first correcting for self selection increases the importance of occupational distribution in explaining racial wage differentials second a proper accounting of the causes of these occupational differences yields discrimination measures that are higher than those that arise when occupational dummy variables are included in the wage equations and all the difference in occupational distribution is treated as nondiscriminatory

racial wage gaps and differences in human capital this paper uses the cotton neumark decomposition methodology and 1990 cps data to investigate the relative importance of labour market structure and human capital in explaining the white male asian white male black white male hispanic wage gaps we find that labour market structure is more important than human capital in explaining the white minority wage gaps moreover most of the labour market structural effects are due to differential returns to white structural characteristics our result is robust to the specification of human capital our results contradict the results of research that indicate that the white minority wage gaps can be explained solely by differences in the endowment of human capital our results have implications for narrowing the wage gaps between whites and racial minorities

gender pay gaps and the restructuring of graduate labour markets in southern europe in this article we investigate whether education job mismatches and growing occupational diversity are important explanatory factors of gender pay gaps amongst university graduates in southern europe namely in portugal spain and italy we use standard decomposition techniques and test the implications of controlling for selection bias our results indicate that over education and greater occupational segregation associated with the emergence of new graduate job profiles are important determinants of earnings inequality whilst our focus is on graduates early careers demonstrating that occupational assignment and selection into employment shape gender pay gaps amongst the highly skilled provides a more pessimistic view on the ability of educational expansion or equal pay legislation to significantly reduce gender pay inequality southern european economies are also particularly interesting to look at since there may be a greater degree of mismatch between the pace of higher education expansion and the changes in the job structure making women particularly vulnerable to over education

investment planning and arm s length control in a nationalised industry applying a relatively decentralised system of control which would keep state owned enterprises soe at arm s length from ministerial departments has been a stated policy for many governments around the world however the specific controls typically used for implementing this policy have seldom been successful the purpose of this paper is to review and evaluate certain of these controls drawing upon the british system of arm s length control of nationalised industries in order to delimit the problem the paper cuts across the government soe relationship from the perspective of investment planning using primary information from the capital investment process in a particular nationalised industry the paper searches for evidence on whether and in what ways existing controls have not been successful three types of controls are investigated 1 the economic and financial groundrules which are supposed to simulate a competitive business style efficiency these rules are often assumed to act as an invisible hand limiting direct government control 2 the direct investment review in the framework of the wider public sector expenditure survey in discussing the nature of this review the paper examines whether government approval of investment conforms to an incrementalist or muddling through model it further considers the role for incremental methods in controlling soe investment 3 the attempt to use corporate planning as a control instrument evidence from internal control processes within the enterprise and in particular the review of investment by a central executive is used in order to evaluate the above controls this serves to show the diffuse character of the planning process and the possibilities and limitations of using similar controls at the government level suggestions are put forward for strengthening these forms of control by modifying or reinforcing certain elements within the existing arm s length framework the paper would be useful for evaulating the difficulties involved in establishing some form of orderlines and formalisation in government soe relationships it shows some of the weaknesses associated with certain technocratic rules and solutions to public policy problems in this environment

gender wage discrimination in the thai labor market in thai this paper investigates the presence of gender wage differentials in the thai labor market a two step approach heckman 1979 was applied in estimating wage equations to avoid sample selection bias the wage differential decomposition methods oaxaca 1973 cotton 1988 oaxaca and ransom 1994 were used the data used were obtained from the labor force survey july september 2008 conducted by the national statistical office of thailand the findings indicate that female workers received lower wages than male workers because of their gender not because they are less productive on the contrary the female workers were shown to be more productive than the men the analysis indicates they would have earned higher wages than men this is especially true in the age groups 15 24 and 25 54 years old although the wage gap was partly explained by a lower productivity of workers 55 60 years old wage discrimination played a substantial role wage discrimination was worse in the younger than the older worker groups

black white male earnings and employment prospects in the 1970s and 1980s evidence for britain abstract using a sample of around 80 000 whites and 2500 blacks the paper highlights not just the economic disadvantage of blacks but also that this disadvantage worsened in the 1980s in britain

does drug use lower wages this study using microdata from the 1980 and 1984 waves of the national longitudinal survey of youth examines the effects of drug use on wages and employment contrary to most previous researcher