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The Impact of Ford Motor Company’s Voluntary Equal Wage Policy on Detroit’s Wage Gap in the 1940s

Journal of Labor Economics 2022 40(2), 505-541
We analyze the impact of Ford Motor Company’s compensation practices on the Detroit-area labor market from 1918 to 1947. Previous studies imply that Ford paid race-independent wages, but its Black workers were sorted into undesirable departments. We extend these results using propensity score reweighting of census data and Ford’s records and confirm that Ford paid equal wages. We then develop a search model with discriminatory and equal wage firms to assess the impact of Ford’s policy on the larger labor market. Calibrated simulations suggest that Ford may have reduced the wage gap in southeastern Michigan by as much as 50%.

Nevertheless She Persisted? Gender Peer Effects in Doctoral STEM Programs

Journal of Labor Economics 2022 40(2), 397-436 open access
We study the effects of peer gender composition in STEM doctoral programs on persistence and degree completion. Leveraging unique new data and quasi-random variation in gender composition across cohorts within programs, we show that women entering cohorts with no female peers are 11.7pp less likely to graduate within 6 years than their male counterparts. A 1 sd increase in the percentage of female students differentially increases women's probability of on-time graduation by 4.4pp. These gender peer effects function primarily through changes in the probability of dropping out in the first year of a Ph.D. program.

Wage Posting or Wage Bargaining? A Test Using Dual Jobholders

Journal of Labor Economics 2022 40(S1), S469-S493
We employ a revealed preference test to distinguish between wage posting and wage bargaining. Using a sample of dual jobholders in Washington State, we estimate the sensitivity of wages and separation rates to wage shocks in a secondary job. In lower parts of the wage distribution, improvements in the outside option lead to higher separations rates but not to higher wages, consistent with wage posting. In the highest wage quartile, improved outside options translate to higher wages but not higher separation rates, consistent with bargaining. In the aggregate, bargaining appears to be a limited determinant of wage setting.