GENDER AND RACE IN THE LABOR MARKET
Sponsored by a Grant TÁMOP-4.1.2-08/2/A/KMR-2009-0041 Course Material Developed by Department of Economics,
Faculty of Social Sciences, Eötvös Loránd University Budapest (ELTE) Department of Economics, Eötvös Loránd University Budapest
Institute of Economics, Hungarian Academy of Sciences Balassi Kiadó, Budapest
Author: Anna Lovász Supervised by Anna Lovász
June 2011
2
GENDER AND RACE IN THE LABOR MARKET
Syllabus
General information
• Course instructor: Lovász Anna (MTA KTI)
• E-mail: lovasz@econ.core.hu
• Department: ELTE TáTK, Department of Economics
• Department coordinator: North Block, 3.59
This is a follow-up course to the Labor Economics with Applications course (János Köllő), covering some topics that were not included (for example, wage differentials, discrimination, segregation) in detail.
Course description
During the course we will examine the labor market inequalities between different groups, as well as their causes and effects, along with labor market discrimination. As a starting point, we will look at statistically observable labor market differences based on Hungarian and international data. Since the integration of disadvantages groups is a main goal of employment policy and equal opportunity legislature worldwide, it is very important to clearly define discrimination and the other causes of the differences. These concepts are often mixed in public discourse, it is difficult to separate them and determine the true extent of labor market discrimination. Successful policies depend on
3 an understanding of what type of differences we are dealing with, where and how they arose, and how we can help those affected.
In the first part of the course, we will study the main models of discrimination, their assumptions and implications, which are the basis of empirical analyses. Although the concept of discrimination may seem simple, in reality it is very difficult to determine its extent, and the topic often leads to heated debates. Objective statistical analysis is very important, so we will discuss all available methods, their empirical difficulties and limitations, because of which the true level of discrimination will always remain an estimate. We will implement the measurement methods during an empirical project using well-known statistical programs.
After a general overview of the theory and methodology, we will focus on the minority groups most relevant in Hungary: women, roma, and immigrants. We will also discuss pre-labor market discrimination, which is an important determinant of labor market differences.
Schedule
Week Topic Literature
(recommended) 1 Introduction
-Observable labor market differences – statistics and trends -Definition of labor market discrimination
-Public opinion, policy goals
Borjas 10.1
Lovász-Telegdy 2010 HLM
2 Models of discrimination I: taste discrimination -model, implications
-employer, coworker, customer discrimination
Borjas 10.2-10.5 (Becker 1971) 3 Models of discrimination II: statistical discrimination
-models, tests, evaluation
Borjas 10.6
Lundberg-Startz 1983 (Altonji-Pierret 2001) (Loury 2002)
4 Measuring discrimination I: traditional methods using representative databases
-wage equation, decomposition -data and empirical issues
Borjas 10.7
Weichselbaumer-Winter 2005 (Jarrell-Stanley 2004)
(Neal-Johnson 1996) 5 Measuring discrimination II: other methods using databases
-individual productivity -indirect tests
-group-level relative productivity
Hellerstein-Neumark 1999 Lovász-Rigó, Lovász 2010 HLM (Black-Brainerd 2004)
6 Measuring discrimination III: tests -audit studies
-CV tests
Bertrand-Mullainathan 2004 Goldin-Rouse 2000
(Heckman 1998)
7 Measuring discrimination IV: tests in Hungary and Sik-Simonovits 2010 HLM
4
experiments
-Hungarian test results -experiments: games
Fershtman-Gneezy 2001
8 Empirical side notes on wage differentials -quantile regression
-cohorts
Other causes of labor market differences
-compensating wage differentials, hedonic wage equations -differences in preferences, effort, biological traits
Borjas 6.
Rao et al 2003
9 Women in the labor market -labor market situation and trends -policies
-psychological traits
Braakman 2009 Weichselbaumer 2004 Booth 2009
10 Roma in the labor market I: employment and wages - long term trends
Empirical project discussion
Kertesi-Kézdi 2011 ET
11 Roma in the labor market II: schooling -pre-labor market differences
-school segregation
Kertesi-Kézdi 2010 BWP Kertesi-Kézdi 2010 HLM Kertesi-Kézdi 2011 AER (Kertesi 2005)
(Kertesi-Kézdi 2006) 12 Employment policies for Roma integration
-evaluation and future goals Empirical project discussion
Fleck-Messing 2010 HLM Ringold et al. 2005 13 Other groups in the labor market, newest topics and methods Hamermesh-Biddle 1994
Literature
Books
Borjas, G.: Labor Economics, 2nd Edition, McGraw Hill 2009.
Further recommended reading:
Becker, G: The Economics of Discrimination, 2nd edition, The University of Chicago Press, 1971.
Kertesi, G.: A társadalom peremén. Osiris Kiadó, Budapest, 2005.
Loury, G.: The anatomy of racial inequality, Harvard University Press, 2002.
5 Book Chapters
Lovász, A. and Telegdy, Á. (eds.): In Focus - Labour Market Discrimination. In:
Fazekas, K., Lovász, A., and Telegdy, Á. (eds.): The Hungarian Labour Market – Review and Analysis 2010. Institute of Economics, IE HAS, National Employment Foundation, Budapest, 2010.
(Articles from this chapter are marked HLM in the table below.)
Articles
Altonji, J. and Pierret, C. (2001): Employer Learning and Statistical Discrimination.
Quarterly Journal of Economics 116(1), pp. 313-350.
Bertrand, M. and Mullainathan, S. (2004): Are Emily and Greg more employable than Lakisha and Jamal? A Field Experiment on Labor Market Discrimination, American Economic Review, pp. 991-1014.
Biddle, J. and Hamermesh, D. (1994): Beauty in the Labor Market, American Economic Review, 84, pp. 1174-1194.
Black, S. and Brainerd, E. (2004): Importing Equality? The Effects of Increased Competition on the Gender Wage Gap, Industrial and Labor Relations Review, 57(4).
Booth, A. (2009): Gender and Competition, IZA Discussion Paper No. 4300.
Braakman N. (2009): The role of psychological traits for the gender gap in full-time employment and wages: Evidence from Germany, SOEP Papers 162.
Fershtman, C. and Gneezy, U. (2001): Discrimination in a Segmented Society: An Experimental Approach, The Quarterly Journal of Economics, 116(1), pp. 351-377.
6 Goldin, C. and Rouse, C. (2000): Orchestrating Impartiality: The Impact of Blind Auditions and Female Musicians, American Economic Review, 90(4), pp.715-742.
Heckman, J. (1998): Detecting Discrimination, Journal of Economic Perspectives, 12, pp. 101-116.
Hellerstein, J. and Neumark, D. (1999): Sex, Wages and Productivity: An Empirical Analysis of Israeli Firm-Level Data, International Economic Review, Vol. 40, No. 1., pp.
95-123.
Jarrell, S. and Stanley, T. (2004): Declining Bias and Gender Wage Discrimination? A Meta-Regression Analysis, The Journal of Human Resources, 39(3), pp. 828-838.
Kertesi, G. and Kézdi, G. (2006): Expected long-term budgetary benefits to Roma education in Hungary, Budapest Working Papers on the Labour Market, 2006(5).
Kertesi, G. and Kézdi, G. (2010): Iskolázatlan szülők gyermekei és roma fiatalok a középiskolában Beszámoló az Educatio Életpálya-felvételének 2006 és 2009 közötti hullámaiból, Budapest Working Papers on the Labour Market, 2010(3).
Kertesi, G. and Kézdi, G. (2011): Roma employment in Hungary after the post- communist transition. Economics of Transition, 19( 3), pp. 563-610.
Kertesi, G. and Kézdi, G. (2011): The Roma/non-Roma test score gap in Hungary.
American Economic Review, 101(3), pp. 519-525.
Lundberg, S. and Startz, R. (1983): Private Discrimination and Social Intervention in Competitive Labor Markets, American Economic Review, 73(3), pp. 340-47.
Neal, D. and Johnson, W. (1996): The Role of Premarket Factors in Black-White Wage Differences, The Journal of Political Economy, 104(5), pp. 869-895.
7 Rao et al. (2003): Sex workers and the cost of safe sex: the compensating differential for condom use among Calcutta prostitutes, Journal of Development Economics, 71(2003), pp. 585– 603.
Ringold et al. (2005): Roma in an expanding Europe: breaking the poverty cycle, The World Bank, Washington D.C.
Weichselbaumer, D. and Winter-Ebmer, R. (2005): A Meta-Analysis of the International Gender Wage Gap, Journal of Economic Surveys, 19(3), pp. 479-511.
Weichselbaumer, D. (2004): Is It Sex or Personality? The Impact of Sex Stereotypes on Discrimination in Applicant Selection, Eastern Economic Journal, 30(2), pp. 159-186.
