An Update and Extension of the Canadian Evidence on Gender Wage Differentials

Michael P Kidd and Michael Shannon

Canadian Journal of Economics, 1994, vol. 27, issue 4, 918-38

Abstract: This paper utilizes the 1989 Labour Market Activity Survey to examine the gender wage differential in Canada. The aim is to update previous studies and extend earlier analysis in two significant ways. First, occupation is treated as endogenously determined. Secondly, the Zabalza and Arrufat (1985) imputation method is utilized to estimate the level of female labor-market experience. The results suggest that the level of estimated gender discrimination is sensitive to the measure of labor-market experience. The paper also concludes that intraoccupation wage effects explain most of the gender wage gap. The paper utilizes the 1989 Labour Market Activity Survey to examine the gender wage differential in Canada. The aim is to update previous studies and extend earlier analysis in two significant ways. First, occupation is treated as endogenously determined. Secondly, the Zabalza and Arrufat (1985) imputation method is utilized to estimate the level of female labour market experience. The results suggest that the level of estimated gender discrimination is sensitive to the measure of labour market experience. The paper also concludes that intra-occupation wage effects explain most of the gender wage gap.

Date: 1994
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