WAGE DISCRIMINATION IN THE REEMPLOYMENT PROCESS

This paper examines wage discrimination by gender in the reemployment market by looking at the experiences of unemployed individuals and dec omposing their wage gap upon reemployment. The Neumark decomposition t echnique is extended to incorporate selectivity and counter-factual es timates are used to explain the development of the wage gap overtime. Whereas total discrimination upon reemployment is declining over lime, the parr directly attributable to hiring is increasing. Policy-makers should consider that employers, constrained by existing legislation t hat does not address hiring issues directly, are switching over to dis criminatory hiring practices that are becoming relatively easier to ad apt, less likely to be detected and harder to prove in a court of law.