Social Origin Pay Gaps in the Higher Professional and Managerial Occupations Daniel Laurison Based in part on The Class Pay Gap in Higher Managerial and Professional Occupations by Daniel ID: 606096
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Slide1
The Class CeilingSocial Origin Pay Gaps in the Higher Professional and Managerial OccupationsDaniel Laurison
Based in part on “The Class Pay Gap in Higher Managerial and Professional Occupations” by Daniel
Laurison and Sam Friedman, accepted for publication in American Sociological Review
1Slide2
Social Class Mobility
2Slide3
What is Class position?No two social scientists agree!Relation to the means of production (Marx)Education (various Social Sciences)Income (Economists)
“Big-Class” (dominant Sociologists)“Micro-Class” (challenger Sociologists)Social Space (Bourdieu)
3Slide4
The Big Classes (EGP/NS-SEC )1: Higher managerial, administrative and professional occupations: CEO, Professor, Stock Broker, Doctor, Military Officer2: Lower managerial, administrative, and professional occupations:
Teacher, Nurse, Store Manager, IT consultant3: Intermediate Occupations: Bookkeeper, Secretary, Teaching Assistant
4: Self-Employed: frequently Plumbers, Carpenters, Hairdressers, Taxi Drivers5: Lower Supervisory and Technical: Chef, Electrician, Communication Operator6: Semi-Routine Occupations:
Sales & Retail Assistant, Care Worker, Landscaper
7: Routine Occupations:
Carpenter, Cleaner, Truck or Bus Driver
8: Never worked or long-term unemployed
4Slide5
Reproduction of Privilege5Slide6
Over-Representation of the Privileged in Top Jobs
6Slide7
Problems with Mobility Studies
Ignores resources beyond single-variable measure of class
position
Dominant focus on mobility rates between big “classes,” on
access
to top jobs.
Might miss potentially
important differences
between
or
within
specific high-status occupational groups
7Slide8
Data and Approach2014 UK Labour Force Survey: Nationally representative, Government dataClass Origin Question: What was the occupation of the main income earner in your household when you were 14 years old?
Destination: Only those in elite occupations
(NS-SEC 1/EGP 1) Higher managerial, administrative and professional occupations
Excluded respondents:
in
full-time
education, not
aged
23-69, no parental occupation data
43,444 respondents
6,104 in NS-SEC 1-categorized elite occupations
3,510 with income, origin, AND occupation data
8Slide9
Social Mobility into Elite Occupations9Slide10
“Micro-Class” Over-Representations.e.friedman@lse.ac.uk; d.r.laurison@lse.ac.ukSlide11
Gender & Race/Ethnicity in the WorkplaceExclusion Tokenism Glass Ceilings Pay/Earnings gaps
11Slide12
Main Research Question: A Class Ceiling?
Do
the upwardly mobile face a
“class ceiling”
in terms of earnings within higher professional and managerial occupations?
12Slide13
The Class Pay Gap(Mean Logged Weekly Earnings in NS-SEC 1 by Social Origin)d.r.laurison@lse.ac.uks.e.friedman@lse.ac.ukSlide14
Models for Earnings DifferencesDependent Variable: Logged Weekly earnings (in £) (also untransformed weekly earnings & also untransformed hourly earnings)I. Demographic & Hours Worked:
Age (in years); Age squared; Female; Not White; Country of Birth: reference=England, vs outside the UK, Northern Ireland, Scotland, Wales.
II. Educational Qualifications. Degree: reference= University Degree vs PhD, MA, Post-Grad Ed Cert, Other Post-Grad, Higher Ed, A-Levels, GCSEs, Other Qualifications, No Qualifications; Degree Class: reference= 2:2/Lower 2nd Class, vs N/A (e.g. no degree, foreign
degree), Pass, Third Class, 2:1/Higher
Second
Class, 1st Class.
III. “Human Capital”:
Job-Related
Training last 3
months (binary); Job Tenure (in years); Past Health Problems (scale 0-2); Current Health Problems (scale 0-4).
IV. Work Context:
Public
sector (vs private); Industry: reference=Public admin, vs Education & Health, Agriculture, Forestry & Fishing, Energy & Water, Manufacturing, Construction, Distribution
, Hotels & Restaurant, Transport & Communication, Banking & Finance, Other services; Firm Size, reference= less than 25 employees, vs 25 to 49, 50 to
499, 500 or more; Work region Professionals (vs Managers).V. Specific Occupation: Specific SOC 2010 code (I let S
tata choose the reference category)Slide15
Origin Earnings Gaps Net of Controls
Model I
Only Demo-graphic Controls
Origins (vs NS-SEC 1 Parents
)
NS-SEC 2 (Lower
Mgrs
& Profs)
0.929**
NS-SEC 3 (Intermediate
Occs
)
0.880***
NS-SEC 4 (Self-employed)
0.833***
NS-SEC 5 (Lower Supervisory & Tech)
0.872***
NS-SEC 6 (Semi-Routine
Occs
)
0.818***
NS-SEC 7 (Routine
Occs
)
0.792***
NS-SEC 8 (No Earner in Household)
0.834***
Model II
Adding Education
0.946*
0.916**
0.872***
0.911**
0.878***
0.848***
0.886*
Model III
Adding Human Capital
0.947*
0.913***
0.870***
0.907**
0.874***
0.845***
0.889*
Model IV
Adding Work Context
0.955*
0.932**
0.899***
0.916**
0.891***
0.867***
0.881**
Model V
Adding Specific Occu-
pations
0.974
0.947*
0.917**
0.937*
0.911**
0.883***
0.897*Slide16
Hourly Gross Earnings £
Short-range
Mobile
-1.118
-1.368
-1.072
Mid-range
Mobile
-2.243***
-2.329
-2.112***
Long-range
Mobile
-3.495***
-2.98
-3.308***
N
3219
798
2421
Logged Weekly
NS-SEC 1 (all)
Earnings
NS-SEC 1.1
NS-SEC 1.2
Short-range
Mobile
-0.039
-0.013
-0.047
Mid-range
Mobile
-0.080***
-0.077
-0.081***
Long-range
Mobile
-0.127***
-0.108*
-0.135***
More Earnings Coefficients for Class Origin
Weekly Gross Earnings
(untransformed GBP)
Short-range Mobile (NS-SEC 2 parents)
-40.19
-11.81
-50.75*
Mid-range Mobile (NS-SEC
3, 4, 5)
-
87.33***
-
81.65*
-
86.81***
Long-range Mobile (NS-SEC
6 & 7)
-
115.38***
-
110.99*
-
117.45***Slide17
Blinder-Oaxaca Decomposition
Logged Values
Exponentiated
Values
P>t
NS-SEC 1 origins
6.729
£ 836.4
0.00
NS-SEC 3 to 8 origins
6.582
£ 721.8
0.00
Difference
0.147
115.9%
0.00
“Explained”
0.068
107.0%
44%
0.00
“Unexplained”
0.080
108.3%
56%
0.00
d.r.laurison@lse.ac.uk
s.e.friedman@lse.ac.ukSlide18
Blinder-Oaxaca Decomposition continued
Contribution to the Pay Gap
%
of Difference Explained
P>t
Base Model Controls
-25.0%
Age & Age Squared
-0.0351
-23.8%
0.00
Female
-0.0049
-3.4%
0.07
Not White
0.0002
0.2%
0.70
Country of Birth
-0.0012
-0.8%
0.59
Quarter Responded to Survey
0.0010
0.7%
0.36
Paid Hours Worked
0.0032
2.2%
0.64
Education
45.0%
Educational Qualifications
0.0698
47.4%
0.00
Degree Classification
-0.0036
-2.4%
0.32
Human Capital
-5.3%
Current Health Problems Scale
0.0011
0.7%
0.26
Past Health Problems Scale
-0.0001
-0.1%
0.81
Job Tenure in Years
-0.0087
-5.9%
0.00
Job-Related training last 3 months
0.0019
1.3%
0.16
Work Context
31.2%
Region of Work
0.0222
15.1%
0.00
Industry
-0.0039
-2.7%
0.23
Public Sector
-0.0065
-4.4%
0.03
Firm Size
0.0142
9.6%
0.00
Specific Occupation
0.0182
12.3%
0.02Slide19
Separate Models by Age Group
d.r.laurison@lse.ac.uk
s.e.friedman@lse.ac.ukSlide20
Separate Models by Ethnic Group
Short-Range Mobile
Mid-Range Mobile
Long-Range MobileSlide21
Separate Models by Gender
Short-Range Mobile
Mid-Range Mobile
Long-Range MobileSlide22
Double Disadvantage for Working Class-Origin WomenSlide23
Class Earnings Gaps by Occupational Group (NS-SEC 3-8 vs Stable)
Base model
All Controls
d.r.laurison@lse.ac.uk
s.e.friedman@lse.ac.ukSlide24
Large Private Firms in Inner Londons.e.friedman@lse.ac.uk; d.r.laurison@lse.ac.ukSlide25
Large London Firms’ Pay Gaps (no controls)s.e.friedman@lse.ac.uk; d.r.laurison@lse.ac.ukSlide26
Pay Gaps Net of Controls, Income Percentile in NS-SEC 1 in Regions.e.friedman@lse.ac.uk; d.r.laurison@lse.ac.ukSlide27
The Rest of the Gap?More sorting within occupationsCultural CapitalLegitimate or “posh” hobbies, accent, stylePrivate schooling & elite university attendanceSocial CapitalWho you know
“Microclass” effectsDiscrimination/Stigma/HomophilyAspirations &
behavior27Slide28
Summary of Key FindingsBeyond “access” upwardly mobile face a powerful class ceiling, earning 10 – 20% less. Class-o
rigin differences larger for men, but women face
double disadvantage. Education & Sorting effects explain big part of pay gap.60% of differences “unexplained.”
28Slide29
Implications for Class and Mobility StudiesImporting feminist concept of “glass ceiling” provides tools for interrogating hidden class barriers within
occupationsFocus on access fails to capture stickiness of class origin
Class position is best captured by multiple measures, not any single variable
29Slide30
Thank you!30