Gender Wage Gap

Paper Summary:

In this article, the writer explores the female-wage differential in Canada by focusing on the empirical research and methodological structures used to explain what accounts for the wage differential. More importantly the paper focuses on the literature that has explained this trend and how the literature has changed or incorporated analytical tools that are useful to the overall theoretical framework of female-wage differentials in Canada. The paper is organized to present empirical studies that differ in terms of modeling frameworks and with a focus on methodological differences throughout the literature. The writer concludes that even though as time progresses the female-male wage differential narrows in Canada, it is still a persistent problem and the literature will continue to change and use new methods to estimate and understand the female-male wage differential.

Outline:
Introduction
Literature Review: General Overview
Empirical Studies and Development
Comprehensive Analysis from Drolet
Conclusion

From the Paper:

"Many studies that focus on the Canadian labor market focus on the factors that affect the human capital investment in that environment, but the theoretical development is still based on the human capital explanation.
"There is extensive literature that uses the auspices of the marginal revenue productivity theory to explain how differences between men and women as it relates to education, experience, hours of work, occupation, and other institutional or structural factors affect the female-wage differential. This type of analysis has been used to explain country or region specific wage differentials because of the use of large cross-sectional data sets that can determine differences in the labor force composition within that particular country or region."
"Typically the female-wage differential models have focused on estimating different functions for males and females."

Sample of Sources Used:

• Drolet, M. (December 2001). The male-female wage gap. Perspectives on Labor and Income, 2, 12. Retrieved on July 28, 2007 from http://www.statcan.ca/english/freepub/75-001-XIE/01201/ar-ar_200112_01_a.html
• Frederiksen, E. (September 2006). An equilibrium analysis of the gender wage gap. Economics Policy Research Unit: University of Copenhagen Working Paper Series. Retrieved on July 28, 2007 from http://www.econ.ku.dk/epru/files/wp/wp-06-08.pdf
• Heckman, J., Lochner, L. Todd, P. (2003). Fifty years of Mincer earning regressions. Department of Economics: Yale University Labor and Population Workshop. Retrieved on July 28, 2007 from http://www.econ.yale.edu/seminars/labor/lap03/lochner-030404.pdf
• Kunze, A. (2003). The Evolution of the Gender Wage Gap. , Labor Economics, 12, 1, pp.73-97. Retrieved on July 28, 2007 from http://www.nhh.no/sam/res&publ/2003/03.pdf
• Levine, L. (April 2003). The gender wage gap and pay equity: is comparable worth the next step? Congressional Research Service. Order Code 98-278 E. Retrieved on July 28, 2007 from http://www.policyalmanac.org/economic/archive/pay_equity.pdf

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