Interpreting the unexplained component of the gender wage gap as indicative of discrimination, the empirical literature to date has tended to ignore the potential impact wage discrimination may have on employment. Clearly, employment effects will arise if discrimination lowers the female offered wage and the labour supply curve is upward sloping. The empirical analysis employs the ABS Income Distribution Survey 1994-95 and finds evidence of both wage and associated employment effects. The analysis is replicated for the earlier period 1989-90. A comparison across time is of interest given the substantial deregulation of the Australian labour market over the period. Copyright 2001 by The Economic Society of Australia.
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