By John S. Heywood, James H. Peoples
Whereas elevated pageant could generate monetary potency and push worker reimbursement to marketplace charges, it will probably additionally aid lessen differential therapy for safe teams comparable to girls, minorities, and the disabled. This booklet provides the main finished physique of empirical facts at the connection among the product marketplace and the level of discrimination in exertions markets. The members examine info from the us, the uk, Germany, and Hong Kong so one can discover the product market's impression on discrimination opposed to the disabled, the function of deregulation in developing festival and changing racial employment styles, and the impact of privatization on public staff' profits. Nuanced analyses, utilizing most sensible perform econometrics, lead the individuals to finish that whereas pageant is helping equalize therapy of staff, it doesn't dispose of discrimination.
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Extra info for Product Market Structure And Labor Market Discrimination
Second, there is substantial variation in product market structure across industries in the United Kingdom. Finally, and perhaps most importantly, the publicly available data in the United Kingdom are in many ways superior to that in the United States. The use of linked employee–employer data allows the wages of individual workers to be tied to the product market structure associated with their specific employer. S. studies that simply match a worker to his or her broad three-digit industry and its market structure, the errors-in-variables problem can be minimized through a more direct link between worker treatment and market structure.
The variables of particular interest are the dummy variables for black racial status (black), monopolistic market structure (monopoly), and the interaction between the two. The coefficient on black, f, captures the black–white wage differential in competitive industries. If discrimination persists in competitive industries then we would expect this coefficient to be negative. The coefficient on monopoly, g, captures the change in earnings as a result of employment in monopolistic industries. If workers share the rents of monopolistic market structure, then we would expect this coefficient to be positive.
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