Some considerations concerning the functional form of earnings

The problem of choosing the correct functional form of earnings has plagued studies of social inequality and labor market segmentation. Although this choice has often been made on superficial grounds, the results presented in the current paper demonstrate that this choice has very significant implications for the empirical findings that emerge from the study of earnings determination. Four functional forms of earnings are compared: dollar earnings, earnings rank based on social perceptions as calibrated by P. Coleman and L. Rainwater (1978, Social Standing in America, Basic Books, New York) the natural logarithm of earnings, and the best-fitting power function transformation of earnings as estimated by the Box-Cox technique. Evaluation of a generalized earnings determination model on a sample of private sector employees produces very similar results across these four functional forms of earnings. More divergent results are obtained when the models are compared across subsamples based on class, economic sector, and gender. Significant contrasts between earnings coefficients across groups are much more likely when utilizing log earnings or the Box-Cox power transformation than when using either dollar earnings or perceived earnings. In addition, the contrasts observed for log earnings and Box-Cox earnings are frequently in the opposite direction of those observed for dollar earnings or perceived earnings. The paper concludes with a discussion of the implications of these findings for theoretical developments in the study of social inequality and labor market segmentation.     

Exploring the spatial wage penalty for women: Does it matter where you live?

Inequality between men and women has decreased over the past four decades in the US, but wage inequality among groups of women has increased. As metropolitan women’s earnings grew by 25% over the past four decades, nonmetropolitan women’s earnings only grew by 15%. In the current study we draw on data from the Current Population Survey to analyze the spatial wage gap among women. We explore differences in the spatial wage gap by education, occupation, and industry. Regression models that control for marriage, motherhood, race, education, region, age, and work hours indicate that metropolitan women earn 17% more per hour than nonmetropolitan women. Nonmetropolitan women earn less than metropolitan women who live in central cities and outside central cities. The gap in metropolitan-nonmetropolitan wages is higher for more educated women than for less educated women. The wage gap is only 5% for women without a high school degree, but it is 15% for women with a college degree and 26% for women with an advanced degree. Nonmetropolitan college graduates are overrepresented in lower-paying occupations and industries. Metropolitan college graduates, however, are overrepresented in higher-paying occupations and industries, such as professional services and finance.     

Occupational Gender Segregation and the Earnings Gap: Changes in the 1980s

The 1980 and 1990 U.S. Census data confirm the decline in the earnings gap between men and women. Occupational segregation by gender also declined during the 1980s. Cross-sectional decompositions show that 15% of the earnings gap would be eliminated if women′s occupation distributions were the same as men′s. Over-time decompositions show that declining occupational segregation accounted for about 36% of the decline in the earnings gap; most of the declining earnings gap resulted from more equal pay within occupations.     

Partnered women's contribution to household labor income: Persistent inequalities among couples and their determinants

This paper explores earnings inequalities within dual-earner couples in East and West Germany drawing on household-level panel data from 1992 to 2016. It has three aims: (1) to analyze how the partner pay gap (the pay gap between partners within one household) has developed over time, given institutional change, and whether the extent of inequality and temporal development vary between East and West Germany; (2) to explore variation in the partner pay gap by male partners' absolute earnings; and (3) to investigate the micro-level determinants of earnings inequalities within couples and determine whether their relevance varies between East and West Germany as well as by male partners’ absolute earnings. We find women earn substantially less than their partners, and our regression results find no indication of a declining partner pay gap. Besides substantial variation between East and West Germany, our results also reveal important group-specific variation in the extent of the partner pay gap as well as in its determinants.     

Socioeconomic background and racial earnings inequality: A propensity score analysis

Does a racial earnings gap exist among individuals who come from similar childhood socioeconomic backgrounds? Is the racial earnings gap larger or smaller for those from higher or lower socioeconomic origins? This research addresses these questions by taking a counterfactual approach to estimating the residual racial pay gap between non-Hispanic black and white men from the 1979 National Longitudinal Survey of Youth. The findings indicate that the racial earnings gap is larger among those from lower-middle class and working class childhood backgrounds than among those from upper-middle class backgrounds, for whom the racial pay gap is indistinguishable from zero. Compared to their more advantaged counterparts, black men from lower-middle and working class backgrounds have more difficulty rising above their socioeconomic origins relative to white men from similar social class backgrounds. Racial earnings equality among those from upper-middle class backgrounds suggests that the high levels of racial inequality often observed among those with college and professional degrees may in fact reflect heterogeneous childhood socioeconomic backgrounds among the college educated—backgrounds that continue to have an effect on earnings despite individual academic achievements.     

The role of occupational attributes in gender earnings inequality, 1970–2010

Grounded in the research on the important role of social structures in forming gender inequalities, this study examines the effect of occupational attributes on the gender earnings gap over four decades. Using the IPUMS-USA from 1970 to 2010, the paper shows that occupational attributes cannot be reduced to the aggregate attributes of their individual incumbents. Rather, the effect of occupations on the gender earnings gap goes far beyond both the distributive role of occupational segregation and the effect of individual wage-related characteristics. Furthermore, occupations not only explain a significant portion of net gender pay gaps, but have also contributed to the narrowing of the gaps over the past several decades, as occupational attributes that favor women's pay have become more dominant over time.     

Marketization,occupational segregation,and gender earnings inequality in urban China

This article analyzes a large sample of the 2005 population mini-census data and prefecture-level statistics of China to investigate gender earnings inequality in the context of economic marketization, paying special attention to the changing role of occupational segregation in the process. We approximate marketization by employment sectors and also construct an index of marketization at the prefecture level. Results show that, despite the tremendous economic growth, marketization has exacerbated gender earnings inequality in urban China's labor markets. Gender earnings inequality is the smallest in government/public institutions, followed by public enterprises, and then private enterprises. The gender inequality also increases with the prefecture's level of marketization. Multilevel analyses show that occupational segregation plays an important role in affecting gender earnings inequality: the greater the occupational segregation, the more disadvantaged women are relative to men in earnings in a prefecture's labor market. Moreover, the impact of occupational segregation on gender earnings inequality increases with the prefectural level of marketization. These findings contribute to understanding the dynamics of gender earnings inequality and have important implications for policy to promote gender equality in urban China.     

1978—2007年中国城乡收入差距的变迁及影响因素分析

改革开放以来,随着中国经济的高速增长,城乡收入差距已引起广泛关注。1978—2007年的30年间城乡收入差距在不断波动中呈上升趋势,城乡收入差距对全国收入差距的贡献率这一指标表明,城乡收入差距已成为中国目前最重要的收入差距。造成及影响中国城乡收入差距的因素是多方面的,如典型的城乡二元经济结构、第一产业收入增长受到多种因素的制约、保证农村居民收入增长的农业政策供给稀缺、城乡人力资本存量存在差距等。     

Varying weekly work hours and earnings instability in the Great Recession

Unstable work schedules are increasingly a prominent stratification outcome, particularly for low-wage workers. Nationally representative and longitudinal research on the topic is limited, however. This article examines varying numbers of weekly work hours among hourly workers, their increase during the Great Recession of the late 2000s, and their impact on growing earnings instability. Using data from the Survey of Income and Program Participation (SIPP), the cumulative probability of ever reporting varying hours among hourly workers increased from 36 percent between 2004 and 2007 to 46 percent between 2008 and 2012. Changes in state-level economic conditions, particularly state-level unemployment rates and economic growth, largely explain the increase in varying hours, consistent with arguments that employers pass the costs of volatile demand onto workers. Finally, variance function regressions show the growth of varying hours accounts for the significant increase in earnings instability from 2004–7 to 2008–12.     

Declining inter-industry wage dispersion in the US

Industrial effects have long been significant factors in wage inequality. Previous research indicates that wage differentials across industries were increasing through the mid 1980s. Using more recent data, however, we find that the level of inter-industry wage dispersion declined by 36% from 1986 to 2002 despite the continued trend towards increasing inequality in the labor force. This decline in inter-industry wage dispersion is evident across gender and educational groups. Using multilevel growth curve models, our multivariate results indicate that the decline is only weakly related to industrial changes in education, occupation or even productivity despite the fact that the latter variable had been a critical factor in the prior period. Indicators of globalization and downsizing also do not appear to explain this decline. For the more recent period, the most important factors associated with the narrowing of inter-industry wage dispersion are reduced unionization rates and the higher proportion of casual workers. We interpret these results as suggesting that firms may now be less economically obliged to pass on a portion of their rents to broad groups of workers and may instead be engaged in more idiosyncratic processes of negotiation with individual workers based on micro-level sources of bargaining power.     

Differential effects of industrial and worker resources on women's wages

A developing body of literature within the sociological examination of income equality has established the significance of industrial and worker resources in the determination of wages. However, there is little available information regarding the uniformity of their effects across different types of workers. This paper attempts to specify the ways in which various resources affect the wage rates of several categories of women workers. The major thesis is that resources produce differential payoffs depending on the location of the worker on various dimensions of stratification. Wage determination among women is hypothesized to vary by age, race, and occupational group. Hypotheses concerning the relative effects of worker and industrial resources on two age groups of black and white women in blue-collar and white-collar occupations are tested. Data from the National Longitudinal Studies of the Labor Market Experiences of Women are used to test models of wage determination among these different groups of women workers. In general, our results suggest that stratification is an important mechanism linking resources to wages and should be incorporated into the resource perspective of labor outcomes.     

Field of study variation throughout the college pipeline and its effect on the earnings gap: Differences between ethnic and immigrant groups in Israel

This study demonstrates the analytical leverage gained from considering the entire college pipeline—including the application, admission and graduation stages—in examining the economic position of various groups upon labor market entry. The findings, based on data from three elite universities in Israel, reveal that the process that shapes economic inequality between different ethnic and immigrant groups is not necessarily cumulative. Field of study stratification does not expand systematically from stage to stage and the position of groups on the field of study hierarchy at each stage is not entirely explained by academic preparation. Differential selection and attrition processes, as well as ambition and aspirations, also shape the position of ethnic groups in the earnings hierarchy and generate a non-cumulative pattern. These findings suggest that a cross-sectional assessment of field of study inequality at the graduation stage can generate misleading conclusions about group-based economic inequality among workers with a bachelor’s degree.     

行业间不平等:日益重要的城镇收入差距成因——基于回归方程的分解

基于回归方程的收入差距分解发现,1988年、1995年和2002年,行业间收入不平等对中国城镇居民收入差距的贡献越来越大,而且这主要是由一些收入迅速提高的垄断行业造成的。同时,区位、教育、所有制和职业类型以及是否有第二职业对收入差距的贡献也在提高,是否完全就业和年龄对收入差距的贡献有明显下降。因此,缩小中国城镇收入差距,亟需打破劳动力市场进入壁垒和产品市场行业垄断。此外,减轻地区间的劳动力流动障碍、普遍提高劳动者的受教育水平等措施,也将是未来政府缩小城镇收入差距的重要政策着力点。     

Globalization, labor market transformation, and metropolitan earnings inequality

Numerous studies have noted the increasing levels of inequality in American society, but relatively few have linked this inequality to the dynamics of the global economy. In this study, we examine the impact of five measures of globalization (global capital, foreign direct investment, exports, foreign born non-citizens, and foreign born citizens) and six measures of labor market transformation (deindustrialization, corporate restructuring, bureaucratic burden, casualization, bad jobs, and multiple job holding) on metropolitan-level earnings inequality of full-time, full-year workers 16 years and older. Our study makes several major contributions to the literature. First, we update and extend the long line of studies on metropolitan earnings inequality. Second, we show that these various dimensions of globalization and labor market transformation exert independent and mainly polarizing effects on the earnings distributions of metropolitan areas, net of controls for labor market structure and sociodemographic variables. Third, we demonstrate the benefits of looking at the causes of inequality in the upper and lower tails of the earnings distribution. Finally, we develop a procedure to estimate counterfactual values of earnings inequality for all major metropolitan areas in the US in 2000. In the process, the paper provides a comprehensive accounting of the impact of globalization and labor market transformation on metropolitan earnings inequality.     

Organizational boundaries and upward job shifts

Recent research has examined the role of organizations in the stratification system and the functioning of stratification systems in organizations. In this analysis, we examine the implications of organizational boundaries for upward job changes within and across organizations. To perform our analysis, we utilize a nonstationary, modified Markov model that allows consideration of individual and job heterogeneity. The data are life histories of a sample of U.S. males between the ages of 30 and 39. Our results indicate that organizational boundaries create two kinds of resources: (1) general resources, and (2) organization-specific resources. General resources have a positive effect on upward movement within and across organizational boundaries. Organization-specific resources have a positive effect on upward movement within organizational boundaries, and a negative effect on upward movement across organizational boundaries—a situation of great benefit to organizations.     

Race and Wealth Inequality: The Impact of Racial Differences in Asset Ownership on the Distribution of Household Wealth

What accounts for persistent racial differences in wealth ownership? Previous research has debated the role that differences in asset ownership play in creating and maintaining wealth inequality. I use survey data to model the ownership of seven assets and find that whites are indeed more likely than blacks to buy high-risk, high-return assets. I then use a simulation model to explore the effect that these differences have on the distribution of wealth. I separate the effects of asset ownership from the effects of racial differences in family wealth history, earnings, education, marital behavior, fertility, and other influences on wealth inequality. I find that removing racial differences in asset ownership reduced wealth inequality drastically, but not completely, and that racial differences in educational attainment account for much of the remaining difference. I estimate how changes in historical patterns of portfolio behavior and educational attainment would have reduced inequality, and I explore the implications of these findings for reducing wealth inequality in the future.     

论群体理论在高校学生教育管理工作中的应用

高校学生教育管理工作意义重大,但同时难度也较大,如何提高其管理绩效是当前许多高校所面临的普遍难题。将组织行为学的群体理论引入高校学生管理工作,拓宽了管理的思路,是对高校学生管理工作的创新,对提高管理绩效有着十分积极的影响。研究结论指出,班委群体、寝室群体和友谊型群体对教育管理工作绩效影响较大。对于班委群体应重点在班委选举,班委群体规模和班委作用上下功夫;对于寝室群体,应着重注意培养良好的寝室风气;对友谊型群体,应更多地对其中的不良群体予以关注。     

Race Composition and Earnings: Effects by Race, Region, and Gender

For more than 40 years, studies have reported that the higher the proportion of blacks in a community, the more white men earn, but the less black men earn. Researchers have speculated that black men earned less because earnings discrimination increases with percent black. Others have suggested that the negative effect of black representation on black men's earnings reflects black men's limited occupational opportunities. This study (1) investigates whether pay discrimination and regional location condition the relationship between black representation and workers' earnings and (2) examines the relationship between black representation and earnings for women. The results, based on 1980 Census data for black and white workers from 267 SMSAs, show that black representation was associated with higher earnings for white men and lower earnings for black men in both the north and south, and that part of the effect for southern black men stemmed from earnings discrimination. Southern black men's earnings gains from black representation offset some of the effects of discrimination, while northern black men encountered costs of black representation even in the absence of earnings discrimination. These findings reflect the disparate economic opportunities of black men in each region as manufacturing jobs have disappeared from the north and relocated to the south. For women, black representation led to higher earnings for blacks and whites. I argue that black representation does not lower black women's earnings because occupational sex segregation prevents black women from threatening white men's economic status.     

Pay premiums for economic sector and race: A decomposition

This paper examines two issues concerning a dual economy theory of labor markets. Using data from the older men's file of the National Longitudinal Surveys, I first investigate the degree to which differences in rates of pay among economic sectors (competitive, monopoly, public) are accounted for by sector differences in (1) human capital composition, (2) unionization, (3) occupational skill requirements, and (4) other factors producing an ability and willingness to pay high wages. The results of this decomposition suggest that the greater ability and willingness to pay high wages and the higher levels of unionization are the primary factors producing a monopoly sector pay premium. Second, I examine how racial differences in pay vary across sector and perform an analogous decomposition of these differences. In contrast to several previous studies, the relative disadvantages of black men were found to be somewhat greater in the competitive sector than in the monopoly sector.     

The earnings payoff from attending a selective college

Studies relating the selectivity of colleges to the earnings of their graduates report inconsistent findings. Some find no effects; most report statistically significant but quite small earnings benefits from attending a more selective college; and a few studies report large effects. Analyzing two recent national longitudinal studies of college graduates, with models sensitive to selection bias, we find large earnings payoffs from attending a highly selective college both four and ten years after graduation. However, those returns are uneven: full-time working women graduates earn a lot less than their male counterparts from equivalent colleges, college majors pay differently, and family background also affects earnings over and above one’s college’s selectivity. Nevertheless, earnings differences attributable to college selectivity are striking.