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Erschienen in: Social Indicators Research 3/2009

01.09.2009

Domestic Supply, Job-Specialization and Sex-differences in Pay

verfasst von: Javier G. Polavieja

Erschienen in: Social Indicators Research | Ausgabe 3/2009

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Abstract

This article proposes an explanation of sex-differences in job-allocation and pay in different institutional contexts. Job-allocation calculations are considered to be related to (1) the distribution of housework and (2) the skill-specialization requirements of jobs. In a context of uncertainty and imperfect information, housework and job-specialization requirements generate a particular incentive structure for each sex. This incentive structure can, however, be altered by governmental action. Welfare policies and services are expected to affect allocation decisions at the micro-level both by reducing the risks of skill-depreciation for women as well as by increasing their intra-household bargaining power. Both effects combined should reduce the economic pay-offs of “traditional” sphere-specialization by sex. This model is tested using a sub-sample of married and cohabiting employees drawn for the second round of the European Social Survey. Results based on nested random-intercept regressions show that sex-differences in job-specialization and housework can explain the wage effects of occupational sex-composition and have a significant direct impact on hourly earnings. Welfare-regime interactions also suggest that the association between housework and earnings is much weaker in societies displaying high levels of defamilialization and decommodification.

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Fußnoten
1
There is mounting evidence that employers are very often willing to pay for skills that can be easily transferred to other firms, which contradicts the predictions of standard human capital theory (see Becker 1993[1964]). New training models explain this finding by arguing that the wage returns for workers of training in transferable skills may be less than the productivity returns for employers when markets are imperfect (see, e.g. Acemoglu and Pischke 1999).
 
2
Training does not need to be explicit but take the form of learning-by-doing on the job.
 
3
Note that even if nominal earnings are higher in H at all levels of tenure, the ratio wages/effort will be higher in the early stages of L-type jobs because skill-investments require effort. Note also that if it is further assumed that women “use up” more effort than men in housework activities and hence dispose of less effort to put forth, the pay-offs of L-type jobs at early stages will be even greater for women. Introducing effort clarifies the incentive properties of the different jobs and facilitates the connection between housework and labor market allocation choices.
 
4
This follows from Beker’s theory of the allocation of effort, which states that effort is in limited supply and positively correlated with productivity in the job. Hence housework supply reduces the available “stock” of effort which will lead to lower productivity and lower earnings (see Becker 1985).
 
5
Scandinavian countries also provide long and generous parental leave. Parental leave policies might deter employers’ investments in job-specific skills and hence hinder women’s career progression (see, e.g. Rønsen and Sundström 2002), from which earning consequences should follow (Mandel and Semyonov 2005). Yet when assessing the overall welfare effect of the Scandinavian model, one should consider not only the direct defamializing impact of public childcare but also the indirect defamializing effects of decommodification. Both effects combined are expected to offset the possibly negative consequences of generous parental leave.
 
6
The existing comparative evidence shows indeed that Scandinavian societies display the most equalitarian distribution of housework amongst spouses (see e.g. Batalova and Cohen 2002; Evertsson and Nermo 2004; Fuwa 2004; Geist 2005).
 
7
The ESS includes two other indicators that could, in principle, be relevant to job-specialization: (1) self-assessed difficulty of getting a similar or better job with another employer, and (2) difficulty to employer of replacing the respondent (as assessed by the latter). Yet these two indicators correlate very poorly with each other, as well as with job-learning time, and they show an equally poor performance in wage equations. This raises serious doubts as to their actual validity as indicators of job-specialization. Given these problems, I use only job-learning time as a measure of job-specialization. This approach is in accordance with the literature (see Tam 1997).
 
8
Mandel and Semyonov (2005) argue that the lower earning differentials between men and women found in highly developed welfare states are actually attributable to the more egalitarian wage structures that characterizes these countries rather than to their family policies. Controlling for wage compression will therefore tend to isolate the defamilialization and decommodification mechanisms discussed above from the possible effects of wage equalization. Yet it must be recognized that wage compression could itself be interpreted as another welfare effect that further equalizes intra-household bargaining-power. Under this latter light, controls for wage compression could be interpreted as unnecessary.
 
9
Tests not reported in Table 3 show that, although attitudinal controls and housework indicators also produce a notable reduction in the sex-composition coefficient, job-specialization is the only variable that can absorb all its statistical impact on earnings.
 
10
Interactions between the social ambition index and respondents’ sex have been tested and rejected.
 
11
This has not been possible at this stage of research as the statistical offices of several of the countries analyzed in this study only provide occupational information at a very high level of aggregation so that the benefits of using large national samples as the basis for calculation are currently offset by the costs of having very poor occupational information. It is hoped that forthcoming datasets such as the harmonized European Labor Force Survey can overcome this problem.
 
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Metadaten
Titel
Domestic Supply, Job-Specialization and Sex-differences in Pay
verfasst von
Javier G. Polavieja
Publikationsdatum
01.09.2009
Verlag
Springer Netherlands
Erschienen in
Social Indicators Research / Ausgabe 3/2009
Print ISSN: 0303-8300
Elektronische ISSN: 1573-0921
DOI
https://doi.org/10.1007/s11205-008-9430-5

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