Re-examining the models used to estimate disability-related wage discrimination
Marjorie L. Baldwin and
Chung Choe ()
Applied Economics, 2014, vol. 46, issue 12, 1393-1408
We examine how differences in model specifications and econometric methods affect unexplained wage differentials between workers with and without physical disabilities, where the unexplained differentials are estimates of the potential effects of disability-related wage discrimination. We apply an enhanced decomposition method (Neuman and Oaxaca, 2004) to selectivity-corrected wage equations to estimate potential discrimination effects. The decomposition separates observed wage differentials into a part explained by differences in characteristics that affect productivity and the decision to work and an unexplained part potentially attributed to discrimination. In addition to the functional limitation variables used to control for the effects of disability on productivity, we add measures of physical job demands, and interaction effects between functional limitations and job demands, to the wage models to examine how estimates of potential discrimination change. The interaction terms measure the extent to which workers' physical limitations affect important job functions. Data come from the 2004 SIPP merged to measures of job demands from the Occupational Information Network (O*Net). With job demands and interactions included in the model, approximately 10% of the observed wage differential for men, and 20% for women, is potentially attributed to discrimination. Changes in decomposition technique substantially alter the estimates of discrimination effects.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:applec:v:46:y:2014:i:12:p:1393-1408
Ordering information: This journal article can be ordered from
Access Statistics for this article
Applied Economics is currently edited by Anita Phillips
More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().