Shingo Takahashi (Kobe University), “Compensating Wage Differentials as a Cover for Discrimination”; Katsuya Takii (University of Osaka), “The Effect of Initial Job in Japanese Labor Market,” May 30, 2026, 14:30–17:45

The Personnel Economics Workshop will be held on Saturday, May 30, 2026. 

Date and Time: 
Saturday, May 30, 2026, 14:30–17:45 

Venue: 
Room 709, Building 3, Waseda Campus, Waseda University 

Format: 
Hybrid 

Dinner: 
We are planning to have dinner after the workshop. If you would like to join, please fill in the dinner participation form by Friday, May 22.
https://forms.gle/T98X6annemiUyi2L7 

Online participation:
Please register through the Zoom link below.
https://list-waseda-jp.zoom.us/meeting/register/bY4idDGuRou_Vbvd00tp5Q 

 

1st Session: 14:30–16:00 

Speaker:
Shingo Takahashi, Kobe University 

Title: 
Compensating Wage Differentials as a Cover for Discrimination
Joint with Ana Maria Takahashi 

Abstract: 
This paper develops a simple model of taste-based discrimination to suggest that a firm uses a compensating wage differential as a cover for discrimination. In the model, men and women work slightly different tasks, so there is a legitimate reason to pay a compensating wage differential. However, the value of the task difference is hard to establish, making it difficult for workers to prove discrimination. The firm strategically takes advantage of this difficulty to misrepresent discrimination as a compensating wage differential by shifting the gender wage gap to the compensating wage differential component of the wage. This strategic action makes it difficult for workers to win the discrimination lawsuit if they sue, and deters workers from suing in the first place, thus doubly protecting the firm from discrimination liability, and making the remedial function of equal pay legislations ineffectual. Empirically, this strategic action makes the detection of discrimination harder as the resulting wage structure resembles that of a compensating wage differential. Controlling for hours worked would underestimate the extent of discrimination as the gender difference in hours worked is a direct consequence of discrimination. We review some prominent discrimination cases to show how firms use compensating wage differentials as a cover for discrimination in practice. 

Language: 
English 

2nd Session: 16:15–17:45 

Speaker: 
Katsuya Takii, University of Osaka 

Title: 
The Effect of Initial Job in Japanese Labor Market 

Abstract: 
We investigate the effect of being a regular employee in a job which a worker takes immediately after graduation, that is, the initial job, on subsequent job status. We construct an assignment model that can be estimated by the marginal treatment effect framework. The model suggests that region- and cohort-level unexpected shocks that influence the demand for the full-time worker share are valid instruments under certain assumptions. Estimating the marginal treatment effect, we find that the treatment effect of the initial job is heterogeneous among individuals. Male workers who are less likely to obtain regular employment in the initial job enjoy benefits of stable employment; however, the regular initial job does not increase the probability of subsequent regular employment for male workers who are likely to obtain regular employment in the initial job. We provide a plausible interpretation to explain these facts. 

Language:
English 

Please check the website of the Personnel Economics Workshop for upcoming workshops: https://sites.google.com/view/peworkshop/home
For inquiries, please contact the Owan Lab, Waseda University, at [email protected]