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Wage determination and discrimination among older workers.
Journal of Gerontology
|September 1, 1979
Summary
Human capital and geographic factors influence wages for older workers. However, significant unexplained wage gaps by race and sex suggest discrimination, particularly occupational segregation for women.
Area of Science:
- Labor Economics
- Sociology of Work
- Gerontology
Background:
- Wage determination is complex, influenced by individual characteristics and market forces.
- Significant wage disparities exist between racial groups and genders, particularly among older workers.
- Understanding these disparities is crucial for addressing labor market inequalities.
Purpose of the Study:
- To analyze wage determinants for individuals aged 58-63.
- To explain wage discrepancies between white and nonwhite individuals.
- To explain wage discrepancies between men and women.
Main Methods:
- Analysis of a large sample of individuals aged 58-63.
- Regression analysis incorporating human capital variables (education, training, tenure, health) and geographic variables (region, cost of living).
- Examination of unexplained components in wage differentials by race and sex.
Main Results:
- Human capital and geographic variables are significant wage determinants, especially for white individuals.
- These variables do not fully account for wage gaps based on race and sex.
- A substantial unexplained wage gap persists, particularly between men and women, indicating potential discrimination.
Conclusions:
- While education, training, tenure, health, and location impact wages, they do not explain all racial and gender wage differentials in older workers.
- Evidence suggests race and sex discrimination contribute to wage inequality among older workers.
- Occupational segregation, with women concentrated in lower-paying jobs, is a key factor in the male-female wage gap.