scholarly journals The Earnings Gap between Black and White Workers in Canada: Evidence from the 2006 Census

2011 ◽  
Vol 66 (3) ◽  
pp. 324-348 ◽  
Author(s):  
Gervan Fearon ◽  
Steven Wald

This paper investigates the earnings gap between Black and White workers in the Canadian economy using 2006 Canadian Census data. Several studies have examined visible minority earnings in Canada (e.g., Hou and Coulombe, 2010; Pendakur and Pendakur, 2011; Yap and Konrad, 2009). Recent research consistently finds that Black workers face one of the largest earnings gaps amongst ethnic groups in Canada (Pendakur and Pendakur, 2002, 2007; Hou and Coulombe, 2010). Nonetheless, the literature lacks an investigation of the combined impact of wage discrimination and occupational segregation on the earnings gap faced by Black workers in the Canadian labour market. Howland and Sakellariou (1993) as well as Hou and Coulombe (2010) highlighted the importance of occupational attainment differences in labour market outcomes. Consequently, this research suggests the need for occupational attainment to be incorporated into models investigating earnings gaps. We address the gap in the literature by utilizing the decomposition method developed by Brown, Moon and Zoloth (1980). This BMZ method extends the traditional earnings decomposition methods advanced by Blinder (1973) and Oaxaca (1973) by also identifying the role played by occupational differences. Specifically, the BMZ method estimates the portion of the earnings gap attributable to differences in productive endowments and to unexplained factors (i.e., the traditional decomposition approach) as well as extending the traditional approach by providing a calculation of the portion of the earnings gap explained by occupational attainment differences. The study finds that approximately one-fifth of the Black-White earnings gap (equaling $2,600) can be attributed to productivity-related endowment differences. Furthermore, the remaining four-fifths of the earnings gap (equaling $9,800) is attributable at the upper-bound level to occupational segregation and wage discrimination. In aggregate, the estimates of occupational segregation and wage discrimination translate into annual earnings losses of approximately $1.5 billion for full-time full-year Black workers in the Canadian workforce.

2016 ◽  
Vol 106 (5) ◽  
pp. 355-359
Author(s):  
Fernando Lozano ◽  
Jessica Shiwen Cheng

We explore differences between Black and White Non-Hispanic workers in the relationship between childhood exposure to religious workers and a worker's labor market outcomes thirty years later. We identify this relationship by exploiting two sources of variation: we use changes in the number of religious workers within states, and we use states' differences by following workers who moved to a different state. Our results suggest that a one percent increase in the number of clergy increases the earnings of Black workers by a range from 0.027 to 0.082 percent relative to the increase in the earnings of White workers.


2021 ◽  
Author(s):  
Ian Lundberg

Racism causes racial disparities in health, and structural racism has many components. Focusing on one of those components, this paper addresses occupational segregation. I document high onset of work-limiting disabilities in occupations where many workers identify as non-Hispanic Black or as Hispanic. I then pivot to a causal question. Suppose we took a sample from the population and reassigned their occupations to be a function of education alone. To what degree would health disparities narrow for that sample? Using observational data, I estimate that the disparity between non-Hispanic Black and white workers would narrow by one-third. This estimate is credible because of adjustment for lagged measures of demographics, human capital, and health carried out under transparent causal assumptions. The result contributes to understanding about inequality and health by quantifying the contribution of occupational segregation to a disparity: if we took a sample and reassigned occupations, the disparity would narrow but would not disappear. The paper contributes to methodology by illustrating an approach to macro-level claims (how segregation affects a population disparity) that draws on explicitly causal micro-level analyses (potential outcomes for individuals) for which data are abundant.


2015 ◽  
Vol 7 (4) ◽  
pp. 198-220 ◽  
Author(s):  
Louis-Philippe Beland

This paper estimates the causal impact of the party allegiance (Republican or Democratic) of US governors on labor-market outcomes. I match gubernatorial elections with March Current Population Survey (CPS) data for income years 1977 to 2008. Using a regression discontinuity design, I find that Democratic governors cause an increase in the annual hours worked by blacks relative to whites, which leads to a reduction in the racial earnings gap between black and white workers. The results are consistent and robust to using a wide range of models, controls, and specifications. (JEL D72, J15, J22, J31, R23)


2020 ◽  
pp. 073088842096814
Author(s):  
Shinjinee Chattopadhyay ◽  
Emily C. Bianchi

Researchers have long documented a significant wage gap between White and Black workers, at least some of which is attributable to discrimination. Drawing on research suggesting that discrimination increases during recessions, we test whether the racial wage gap expands during economic downturns. Using longitudinal wage data from the Panel Study of Income Dynamics over a 40-year time period (N = 18,954), we find that the wage gap between Black and White workers increases with the unemployment rate. Moreover, we find that the cyclical wage gap is more pronounced in states in which Whites hold more negative attitudes about Blacks and in states with larger Black populations, suggesting that the racial wage gap expansion during recessions is at least partially driven by discrimination. Finally, we find evidence for at least two mechanisms by which the wage gap expands during recessions. First, we find that Black workers are more likely to lose their jobs during downturns and earn lower wages upon reemployment than comparable Whites. Second, we find that Black hourly workers are slightly more likely to have their hours reduced during recessions than White hourly workers, thereby resulting in lower earnings. These findings suggest that the racial wage gap widens during recessions and that discrimination accounts for at least some of this expansion.


Author(s):  
Leah Platt Boustan

This chapter shows that northern employers used black migrants more interchangeably with other black workers than with similarly skilled white workers in the North. The lack of substitutability between black and white workers was due both to actual differences in productivity—owing to, for example, racial disparities in school quality—and to discrimination in job assignments. In addition, the competition with southern blacks generated larger wage losses for black men in the North than for similarly skilled whites. This chapter argues that the migration produced clear economic winners and losers. The southern migrants themselves benefited from the move from the low-wage South, while existing black workers in the North lost ground. In part because of competition from southern in-migrants, black workers experienced little earnings growth in the North relative to whites before 1965.


2020 ◽  
Vol 28 (2) ◽  
pp. 168-191
Author(s):  
Ebun Joseph

In this study, the statement ‘race is no longer an issue’ is used to examine how 32 migrants of Spanish, Polish and Nigerian descent understand the significance of race in labour market mobility in Ireland. Their responses showed that Black and White workers talk about race differently. It also revealed an ambivalence about race among the White workers. This article employs counterstorytelling technique to analyse and present these differences through stories which humanise the lived experiences of migrants navigating the Irish labour market. The article commences with a discussion of how whiteness provides unacknowledged privilege. This is followed by a discussion of critical race theory’s counterstorytelling as an analytical tool for examining social relations. The participants’ narratives and current realities are then synthesised and woven into dialogues to construct composite portraits that invite readers into the world of migrant workers. The two stories constructed in this article portray how stories can open conversation about race and racism. Story A contains stereotypes that are used to explain the lack of racial diversity in the workplace, while story B challenges the complacency about how race and racism impact on the disparity in outcome among different groups. Finally, the article highlights the importance of counterstories in labour market research.


2015 ◽  
Vol 36 (5) ◽  
pp. 711-732 ◽  
Author(s):  
Lin Xiu ◽  
Morley Gunderson

Purpose – The purpose of this paper is to analyze the gender earnings gap in China with a focus on the role of differences in the occupational distribution of males and females. Design/methodology/approach – The authors use a procedure to model occupational attainments and decompose differences in earnings into an inter-occupational portion due to differences in the occupational distribution between males and females, and an intra-occupational portion due to differences in pay. The analysis is based on Chinese census data. Findings – The authors find that the male-female pay gap is virtually completely explained by wage discrimination defined as females being paid less than males within the occupation groups based on six broad occupations. Occupational segregation explains virtually none of the overall male-female pay gap, and in fact the “segregation” slightly favors women. However, the picture changes substantially when the analysis is conducted at the more disaggregate sub-occupation level within each of the six broad groups. Wage discrimination remains the prominent contributor to the pay gap across the disaggregated sub-occupations in each of the broad occupations. But there is considerable heterogeneity in the effect of occupational discrimination within the sub-occupations within the different broad occupational groups. Social implications – When females have the same occupation-determining characteristics as men, they are in lower paying sub-occupations within the professional group and to a lesser extent within manufacturing and operations jobs. There is considerable heterogeneity in the effect of occupational discrimination within the sub-occupations in the different broad occupational groups. Originality/value – The paper systematically examines the degree to which the gender earnings gap in China is due to the differences in occupational distributions of males and females, highlighting that the conventional Blinder-Oaxaca decompositions can under- or over- estimate the unexplained portion of the gender pay gap by controlling or not controlling for differences in the occupational distribution of males and females. The paper also shows that previous studies that have examined occupational segregation across aggregate occupational groups can mask important differences in the effect of occupational discrimination within the sub-occupations in the different broad occupational groups.


Author(s):  
Francisco Campos ◽  
Markus Goldstein ◽  
Laura McGorman ◽  
Ana Maria Munoz Boudet ◽  
Obert Pimhidzai

Evidence from developed and developing countries indicates that there is significant gender segregation within the labour market, with women more likely to work in low-productivity sectors or less profitable businesses. This chapter looks at occupational segregation which significantly contributes to the earnings gender gap worldwide. The chapter studies the differences in outcomes for male and female enterprises and their sectors in sub-Saharan Africa, a region of high female labour market participation and entrepreneurship. Data on Uganda show that women breaking into male-dominated sectors make as much as men, and three times more than women staying in female-dominated sectors. Factors including entrepreneurial skill/abilities and credit/human capital constraints do not explain women’s sectoral choices. However, information about profitability of their small enterprises, male role models’ influence, and exposure to the sector from family and friends are critical in helping women circumvent or overcome norms undergirding occupational segregation.


2020 ◽  
Vol 8 (1) ◽  
Author(s):  
Kristoffer Jutvik ◽  
Darrel Robinson

Abstract Whether refugees in need of protection should be granted long- or short-term residence permits in the host country upon arrival is a long-standing debate in the migration policy and scholarly literature. Rights-based models of inclusion advocate for secure and long-term residency status arguing that this will provide the foundations for successful inclusion. Responsibilities-based models on the other hand claim that migrants should only be granted such status if certain criteria, such as full-time employment, have been met, again under the belief that such a system will facilitate inclusion into the host society. Using a sudden policy change as a natural experiment combined with detailed Swedish registry data, we examine the effect permanent residency on three measures of labour market inclusion in the short-term. Our findings are twofold. On the one hand, we find that temporary residents that are subject to a relatively less-inclusive situation have higher incomes and less unemployment. However, at the same time, they are less likely to spend time in education than are those with permanent residency. First part title Permanent or Temporary Settlement? Second part title A Study on the Short-Term Effects of Temporary and Permanent Residence Permits on Labour Market Participation


10.1068/a3781 ◽  
2005 ◽  
Vol 37 (3) ◽  
pp. 441-461 ◽  
Author(s):  
Linda McDowell ◽  
Diane Perrons ◽  
Colette Fagan ◽  
Kath Ray ◽  
Kevin Ward

In this paper we examine the relationships between class and gender in the context of current debates about economic change in Greater London. It is a common contention of the global city thesis that new patterns of inequality and class polarisation are apparent as the expansion of high-status employment brings in its wake rising employment in low-status, poorly paid ‘servicing’ occupations. Whereas urban theorists tend to ignore gender divisions, feminist scholars have argued that new class and income inequalities are opening up between women as growing numbers of highly credentialised women enter full-time, permanent employment and others are restricted to casualised, low-paid work. However, it is also argued that working women's interests coincide because of their continued responsibility for domestic obligations and still-evident gender discrimination in the labour market. In this paper we counterpose these debates, assessing the consequences for income inequality, for patterns of childcare and for work–life balance policies of rising rates of labour-market participation among women in Greater London. We conclude by outlining a new research agenda.


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