Evidence On Gender Wage Discrimination In Portugal: Parametric And Semi‐Parametric Approaches
AbstractIn this paper we use two alternative approaches to study the extent of gender wage discrimination in Portugal. Both methods involve the estimation of wage equations for males and females and the Blinder  and Oaxaca  decomposition. However, to take into account possible sample selection bias, we consider both parametric and semi-parametric methods. First, we consider a parametric approach that relies on distributional assumptions about the distribution of the error terms in the model (Vella (1992, 1998) and Wooldridge (1998)). Within this approach, if the distributional assumption is not satisfied, the parameters? estimates may be inconsistent. Secondly, we apply Li and Wooldridge  semi-parametric estimator, which does not assume any known distribution on the joint distribution of the errors of the wage equation and of the sample selection equation; the distribution has an unknown form and is estimated through non-parametric kernel techniques.We employ micro data for Portugal from the European Community Household Panel (ECHP). The results from both approaches provide evidence in favour of the existence of gender wage discrimination in Portugal. However, the extent of labour market discrimination decreases when sample selection bias corrections are taken into account.
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Bibliographic InfoArticle provided by International Association for Research in Income and Wealth in its journal Review of Income and Wealth.
Volume (Year): 56 (2010)
Issue (Month): 4 (December)
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Web page: http://www.blackwellpublishing.com/journal.asp?ref=0034-6586
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Other versions of this item:
- Aurora Galego & João Pereira, 2006. "Evidence on Gender Wage Discrimination in Portugal: parametric and semi-parametric approaches," Economics Working Papers 13_2006, University of Évora, Department of Economics (Portugal).
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
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- Patrick Saart & Jiti Gao, 2012. "Semiparametric Methods in Nonlinear Time Series Analysis: A Selective Review," Monash Econometrics and Business Statistics Working Papers 21/12, Monash University, Department of Econometrics and Business Statistics.
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