WAGE DETERMINATION BY GENDER AND VISIBLE MINORITY STATUS - EVIDENCE FROM THE 1989 LMAS

The 1989 Labour Market Activity Survey (LMAS) is used to examine the w age implications of membership in groups distinguished by gender and v isible minority status. White men, minority men, white women and minor ity women earn an average hourly wage of $14.73, $12.48, $11.33 and $1 0.97, respectively. We examine whether these rates and their pair-wise differences can be explained by productivity-related characteristics, and conclude that less than 30 per cent of the offered wage different ials between white males-minority females, white males-white females a nd white males-minority males can be attributed to productivity-relate d factors. We also conclude that virtually none of the differentials b etween minority males-white females and white females-minority females can be explained by productivity factors. Approximately 11 per cent o f the wage differential between minority males and minority females is due to differences in productivity characteristics.