The gender pay gap, adjusted and unadjusted, USA, UK, Australia, Germany and France

https://twitter.com/adchamberlain/status/712647716229111808

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Source: Demystifying the Gender Pay Gap: Evidence from Glassdoor Salary Data – Glassdoor Economic Research via Wednesday evening links – AEI | Carpe Diem Blog » AEIdeas.

https://twitter.com/adchamberlain/status/713097526878953472

 

 

 

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Drug testing helps minority job applicants @jacindaardern

Statistical discrimination is a harsh mistress. If reliable measures of the quality of job applicants are unavailable for short-listing, such as credit checks, coarser, less reliable screening devices will be employed. That was the case when credit checks were prohibited in employment recruitment:

Looking at 74 million job listings between 2007 and 2013, Clifford and Shoag found that employers started to become pickier, especially in cities where there were a lot of workers with low credit scores. If a credit-check ban went into effect, job postings were more likely to ask for a bachelor’s degree, and to require additional years of experience.

There are other ways that employers could have also become more discerning, Shoag says. They might have started to rely on referrals or recommendations to make sure that applicants were high-quality. In the absence of credit information to establish trustworthiness, they may even have fallen back on racial stereotypes to screen candidates. The researchers couldn’t measure these tactics, but they’re possibilities.

Drug testing allows employers to dispel less accurate stereotypes about drug use among different ethnic and social groups. They increased hiring of minorities because a reliable measure became available of their drug use:

…after a pro-testing law is passed in a state, African-American employment increases in sectors that have high testing rates (mining, manufacturing, transportation, utilities, and government).

These increases are substantial: African-American employment in these industries increases by 7-30%. Because these industries tend to pay wage premia and to have larger firms offering better benefits, African-American wages and benefits coverage also increase. Real wages increase by 1.4-13% relative to whites. The largest shifts in employment and wages occur for low skilled African-American men.

I also find suggestive evidence that employers substitute white women for African-Americans in the absence of testing. Gains in hiring African-Americans in these sectors may have come at the expense of women, particularly in states with large African-American populations.

Employers test for drug use both for health and safety reasons and as a way of screening out less reliable employees. People who break the rules are not reliable employees and that includes taking drugs. In low skill jobs, what employers seek is a recruit who is friendly and reliable.

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Testing of the skills of workers also showed similar results. What happened is that the ratio of black to white hirings do not change. The administration of these skills tests allowed the more productive of both white and black job applicants to be identified and hired.

Employers already had an accurate stereotype of the average skills of different ethnic groups. Administration of tests allow them to identify which members of each group were the most productive.

It is a standard result that statistical discrimination improves the chances of below-average applicants subject to the stereotype but harms those of above average quality. For that reason, applicants look for what methods of counter-signalling to show that they are indeed a quality applicant – make themselves stand out from the crowd.

Employers profit from developing screening devices that go beyond stereotypes to identify above-average applicants. They want screening devices that find those who do not otherwise stand out from the crowd because of difficulties in transferring credible information about their quality. This is a special difficulty with low-skilled vacancies because hiring is made based much more than on character than experience.

The US gender wage gap by level of education

Unadjusted US gender wage gap at the 10th, 50th and 90th percentiles in 1980, 1989, 1998 and 2010

Much ducking and diving is required to explain why the women with most options in life have the largest gender wage gap.

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Source: The Gender Wage Gap: Extent, Trends, and Explanations by Francine D. Blau, Lawrence M. Kahn :: SSRN via Panel Study of Income Dynamic (PSID).

How is the gender pay gap going in the USA since 1980, adjusted and unadjusted?

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Source: The Gender Wage Gap: Extent, Trends, and Explanations by Francine D. Blau, Lawrence M. Kahn :: SSRN

On how feminism is dead at its own hand

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An Economic Approach to School Integration: Public Choice with Tie-ins

Thomas Borcherding “An Economic Approach to School Integration: Public Choice with Tie-ins.” Public Choice, 1977, argues that a reason for racial or ethnic discrimination in the public sector is politics encourages the coercive transfer of income from the racial, religious or ethnic group to those with more political influence.

Race can be used as a means of organizing coalitions to lobby for fiscal and economic discrimination in favour of even a previously unprejudiced group.

Preferences of each group to locate in a common geography and the severe control over entry or exit from the group that such things as skin colour, language, caste, and religious dogma impose make the organization of racial or ethnic coalitions by political entrepreneurs fairly cheap and minimises free riding and defection.

Prejudice may reinforce the solidarity of each group and help to monitor via custom, mores, and folkways the behavior of those that would attempt to bring persons of other groups into the former coalition. Further, prejudice may also serve as a device to rationalize exploitation of another group by fiscal or other means.

Borcherding argues that integration, racial balancing, quotas, and busing of school children take on a new logic when income transfers can be tied to fairly immutable characteristics such as race.

Mixing of children by race reduces the ability of a white dominated school board to differentially favour its own partisans’ children and to discriminate against those of blacks.

This paper anticipated Becker’s point that the competition among pressure groups for political influence for looks for lower cost ways of redistributing wealth so as to as much as possible limits the largess as much as possible to the pressure groups that lobby for it and their allies.

The gender pay gap for high school leavers and graduates aged 35-44 in the US, UK, Canada, Denmark, Sweden, Australia and New Zealand

The USA, the gender pay gap gets worse if you go to college. By contrast, in Sweden and especially Canada the gender pay gap is much less for graduates than for those with a high school education.

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Data extracted on 09 Mar 2016 22:28 UTC (GMT) from OECD.Stat.

In most countries in the chart above, going on to university and graduating does not reduce the gender pay gap by the time you reach your late 30s and early 40s. Best explanation for that is that part of the graduate wage premium is traded for work-life balance.

The adjusted #genderwagegap by occupation and family status

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The #genderwagegap by the length of the working week

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Men are 12X more likely than women to die from their jobs

British full-time gender wage gap by age band

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Source: What is the Gender Pay Gap? | Visual.ONS.

Increasing % of Marriages in the US that are Interracial

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Milton Friedman on racism and sexism in Hollywood, today and yesterday

David Henderson reminded me of the superb discussion by Milton Friedman in Capitalism and Freedom of the way in which the marketplace erodes prejudice.

Source: Milton Friedman on Trumbo, David Henderson | EconLog | Library of Economics and Liberty.

More trigger warnings for fainting couch feminists

https://twitter.com/cl_kitchens/status/696852649002401792/p%20%20phttps://twitter.com/IWF/status/697584640756994048

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