The employment effects of gender discrimination in Australia 1994-95

Interpreting the unexplained component of the gender wage gap as indicative of discrimination, the empirical literature to date has tended to ignore t he potential impact wage discrimination may have on employment. Clearly, em ployment effects will arise if discrimination lowers the female offered wag e and the labour supply curve is upward sloping. The empirical analysis emp loys 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 s ubstantial deregulation of the Australian labour market over the period.