Occupational and industrial contextual indicators in income determination models for Australia

Contextual variables, such as average education, gender composition, ethnicity and unionization, influence individual incomes differently when aggregated to occupations and to industries. Discriminatory effects exerted on income by ethnic and gender segregation in occupational labor markets are in some cases counterbalanced by segregation in industrial labor markets. Employment in different industries influences income irrespective of individual characteristics of the employees and irrespective of aggregate characteristics of their occupations. This impact of industrial location is also independent of organizational characteristics of the industries, even if the choice of characteristics is determined by the economic segmentation theory.