While increased competition may generate economic efficiency and push employee compensation to market rates, it may also help reduce differential treatment for protected groups such as women, minorities, and the disabled. This book presents the most comprehensive body of empirical evidence on the connection between the product market and the extent of discrimination in labor markets. The contributors look at data from the United States, the United Kingdom, Germany, and Hong Kong in order to explore the product market's influence on discrimination against the disabled, the role of deregulation in creating competition and altering racial employment patterns, and the influence of privatization on public employees' earnings. Nuanced analyses, using best practice econometrics, lead the contributors to conclude that while competition helps equalize treatment of employees, it does not eliminate discrimination. Tables Foreword Preface
1 The Influence of Product Market Structure on Labor Market Discrimination John S. Heywood and James H. Peoples
2 Market Power and Racial Earnings: A Quantile Regression Approach Jacqueline Agesa and Kristen Monaco
3 Product Market Structure and Gender Discrimination in the United Kingdom Clive Belfield and John S. Heywood
4 Gender and Wages in Germany: The Impact of Product Market Competition and Collective Bargaining Uwe Jirjahn and Gesine Stephan
5 Gender Composition and Market Structure in Hong Kong John S. Heywood and Xiangdong Wei
6 Privatization and Racial Earnings Differentials James H. Peoples and Wayne K. Talley
7 New Estimates of Discrimination against Men with Disabilities: The Role of Customer Interaction in the Product Market Marjorie L. Baldwin
8 Regulatory Reform and Racial Employment Patterns Kaye Husbands Fealing and James H. Peoples
9 Market Structure, Payment Methods, and Racial Earnings Differences John S. Heywood and Patrick L. O’Halloran
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Library of Congress Cataloging-in-Publication Data
Product market structure and labor market discrimination / edited by John S. Heywood and James H. Peoples. p. cm. Includes bibliographical references and index. ISBN 0-7914-6623-X (hardcover : alk. paper) 1. Social marketing. 2. Discimination in employment. I. Heywood, John S., 1957– II. Peoples, James.
HF5414.P76 2005 331.1—dc22
10 9 8 7 6 5 4 3 2 1
2005006556
Contents
List of Tables Foreword Preface Chapter 1 The Influence of Market Structure on Labor Market Discrimination John S. Heywood and James H. Peoples
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Market Power and Racial Earnings: A Quantile Regression Approach Jacqueline Agesa and Kristen Monaco
Product Market Structure and Gender Discrimination in the United Kingdom Clive Belfield and John S. Heywood
Gender and Wages in Germany: The Impact of Product Market Competition and Collective Bargaining Uwe Jirjahn and Gesine Stephan
Gender Composition and Market Structure in Hong Kong John S. Heywood and Xiangdong Wei
Privatization and Racial Earnings Differentials James H. Peoples and Wayne K. Talley
v
vii xi xiii
1
15
39
59
81
101
vi
Chapter 7
Chapter 8
Chapter 9
Contents
New Estimates of Discrimination against Men with Disabilities: The Role of Customer Interaction in the Product Market Marjorie L. Baldwin
Regulatory Reform and Racial Employment Patterns Kaye Husbands Fealing and James H. Peoples
Market Structure, Payment Methods, and Racial Earnings Differences John S. Heywood and Patrick L. O’Halloran
Contributors Index
125
155
187
209 213
2.1
2.2
2.3
2.4
2.5
3.1 3.2 3.3 3.4 3.5 3.6
3.7
3.8
4.1
Tables
Descriptive Statistics of Workers in Manufacturing Industries, 1991–1996
Percent of Black Workers in Manufacturing Industries, 1991–1996
Ordinary Least Squares Estimates of Earnings of Workers in Manufacturing Industries, 1991–1996
Quantile Regression Estimates of Earnings of Union Workers in Manufacturing Industries, 1991–1996
Quantile Regression Estimates of Earnings of Nonunion Workers in Manufacturing Industries, 1991–1996
Description of Market:
Manager Responses
Measures of Competition:
Critical Variables:
Manager Responses
Workplace Level and Worker Level
Effect on Log Hourly Pay for Female Workers
Gender Earnings Difference for Female Workers
Workplace-Level Effects of Percent Female on Log Median Wage at Workplace
Workplace-Level Effects of Percent Female Workforce on Financial Performance and Labor Productivity
Workplace-Level Effects of Percent Female on Financial Performance and Labor Productivity by Market Competitiveness
Descriptive Statistics of Performance Pay
vii
20
22
26
28
32 44 45 46 47 49
51
53
54 70
viii
4.2 4.3
4.4
5.1
5.2 5.3 5.4 5.5 6.1 6.2
6.3 6.4 6.5
6.6
6.7
7.1
7.2
7.3
7.4
Tables
Determinants of Receiving Piece Rates
Determinants of the Log Hourly Wage at the Individual Level
Determinants of Gender Differences in Establishment Effects on Wages
Variable Description and Descriptive Statistics for Hong Kong
Cross Tabulation of Gender Share and Market Structure
Regressions with the Parsimonious Model
Regressions with the Augmented Model
Regressions with the Extended Model
Mean Residency Patterns
Metropolitan Area Labor Earnings and Racial Residency Patterns of Public Municipal Employees
Mean Weekly Earnings
Earnings Results for Public Municipal Workers
Black–White Racial Earnings Differentials for Local Government Employees
Black–White Racial Earnings Differentials for Private Sector Employees
Description of Explanatory Variables and Their Descriptive Statistics for Public Municipal Workers Who Provide Construction, Public Transit, Energy Utility, Recreation, or Health Services
Mean Wages and Employment Rates by Disability Status: Stratified by Prejudice Rankings
Decompositions of Wage Differentials between Disabled and Nondisabled Men: Stratified by Prejudice Rankings
Mean Wages and Employment Rates by Disability Status: Stratified by Visibility Rankings
Decompositions of Wage Differentials between Disabled and Nondisabled Men: Stratified by Visibility Rankings
73
74
76
87 89 91 93 95 105
107 109 112
115
117
119
141
143
145
146
8.1 8.2 8.3
8.4
8.5 8.6 8.7 8.8 8.9
8.10
8.11
9.1 9.2 9.3
9.4
9.5
9.6
9.7
Tables
EEOC Legislation for Network Industries
Deregulation and Divestiture in Network Industries
Mean Profile for For-Hire Truck Drivers in the Motor Carrier Industry
Mean Profile for All Workers in the For-Hire Sector in the Motor Carrier Industry
Mean Profile of Railroad Workers
Mean Profile of Airline Workers
Mean Profile of Telecommunications Workers
Mean Profile of Utility Workers
Predicted Union Status Probability of For-Hire Truck Drivers and Private Carriage Truck Drivers
Predicted Employment Probabilities of Workers in Deregulated Network Industries
Predicted Employment Probabilities of Nonnetwork Workers in Service Sector Industries
Descriptive Statistics by Race
Log Wage Equations by Race and Payment Method
Log Wage Equation with the Sample Limited to Sales, Craft, Laborer, and Operative Occupations
Piece Rate and Commission Coefficients by Race and Gender with the Sample Limited to Sales, Craft, Laborer, and Operative Occupations
Nonwhite Coefficient from a Subsample Limited to Professional and Managerial Occupations
Piece Rate and Commission Coefficients from Fixed Effects Models and Change Equations