Laurie A. Morgan and Michelle M. Arthur, Methodological Considerations in Estimating the Gender Pay Gap for Employed Professionals, Sociological Methods & Research 2005 33: 383-403.

The authors address a methodological issue in estimating pay penalties to women professionals—whether the dependent variable in the pay equation should be hourly wage or earnings measured over some other period such as weeks, months, or a year. The authors analyze data on college graduates working in professional specialty occupations and on physicians, and they report two main conclusions. First, the appropriate specification of the pay equation for (employed) professionals is with ln(earnings) as the dependent variable with ln(hours) included as an independent variable. Second, the implications of using this specification for estimates of gender pay differentials are serious. In the data on professionals, respecification of the pay equation changes the estimate of the pay penalty to women from-4 6 to-7 6 percent. In the data on physicians, it changes the estimate from no penalty to a very large one, from-1 8 to-13.0percent.

Key Words: quantitative methods • methodology (data analysis) • compensation • professional workers • gender inequality

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: