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Introduction
Of economic theory known such a thing as discrimination in the labor market . Discrimination on the labor market is the practice of hiring , which leads to differences in wages for equally productive workers . In the presence of wage discrimination against certain groups of workers is lower than that of other groups doing the same work with the same qualifications. Entrepreneurs often accused of discrimination on grounds of race , sex, age , disability , religious beliefs or ethnic origin .
Discrimination affects the functioning of labor markets . It generates differences in equilibrium wages , which do not appear in the result of these different income groups of the marginal product of their labor and the marginal cost of labor of the workers themselves . Discrimination does not recognize the equality of opportunities for certain groups of workers to find a job.
Literature review
It is hard to believe that women and still earn less than men, but it is. On average, the difference between the salaries ranged from 13 to 23 percent. And this average statistics is worldwide, regardless of their country of residence and level of education.
Incomes Data Services ( Data Service Revenue ) based on the socio- available statistical data of Eurostat , the International Labour Organization and Sites Fund WageIndicator ( indicator salary) conducted a study on the difference between the salaries of 63 countries , 30 of which - European .
Here's a brief report on the study :
The average difference in wages between men and women around the world is 15.6 percent. In Europe , Oceania and Latin America, it is slightly smaller than in Asia and Africa . On the situation in Asia and Africa, while much less information available.
Registered salary data site WageIndicator, which filled about 400 000 people , showed that the difference in the salary survey participants ranged from 13 to 23 percent.
According to the study , the level of education of women the same as men , or even higher . However, getting a woman of higher education does not necessarily lead to a reduction in the wage gap . Nevertheless , the study showed that the level of women's education , still affected by this difference.
The salary gap between men and women are traditionally more in occupations that are considered "feminine" - health, education , social. While in traditionally "male" occupations , this difference is less.
Especially significant difference is observed in industries such as mining , services and financial sector.
Public administration , social activities and the provision of individual services show the smallest difference in salaries between men and women .
Modeling
Divide the data file on two groups by gender and create a scatterplot:
We may see, that the points for males are higher than for females.
Create the linear regression model for males:
And for females:
We have obtained the linear regression models to predict the monthly wage for men and women depending on their age.
The difference between the wage levels is really significant:
Conclusion
As a result, our analysis revealed that discrimination exists in the labor market (by gender and by age). Salaries of men and women differ greatly. To make a prediction on the level of salary, depending on age, were constructed two regression models.
Especially the difference manifests itself in the older age groups. Even higher levels of education among women does not change the current trend. The difference in pay increases as the worker becomes more mature.
Works Cited
Judd, Kenneth L. (1998). Numerical Methods in Economics. MIT Press. p. 225. ISBN 978-0-262-10071-7.
Young, Garrett Birkhoff and applied mathematics, Notices of the AMS, vol. 44, no. 11, pp. 1446–1449, 1997.
