Abstract

To investigate the relationship between earnings inequality and the gender-based wage differential, we estimated the correlation between wages and the percentage of women in three-digit occupations and eliminated this negative effect under a proposed comparable worth scenario. The effect of comparable worth on earnings inequality was assessed by calculating the coefficient of variation, variance of the natural log of earnings, the Gini coefficient, the Theil-Entropy Index, and Atkinson's measure of social welfare. We found a decrease in overall earnings inequality, inequality between women and men, and inequality among women. The decline in inequality held across choice of index.

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