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Gender wage gap: A semi-parametric approach with sample selection correction

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  • Picchio, Matteo
  • Mussida, Chiara

Abstract

Sizeable gender differences in employment rates are observed in many countries. Sample selection into the workforce might therefore be a relevant issue when estimating gender wage gaps. We propose a semi-parametric estimator of densities in the presence of covariates which incorporates sample selection. We describe a simulation algorithm to implement counterfactual comparisons of densities. The proposed methodology is used to investigate the gender wage gap in Italy. We find that, when sample selection is taken into account, the gender wage gap widens, especially at the bottom of the wage distribution.

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Bibliographic Info

Article provided by Elsevier in its journal Labour Economics.

Volume (Year): 18 (2011)
Issue (Month): 5 (October)
Pages: 564-578

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Handle: RePEc:eee:labeco:v:18:y:2011:i:5:p:564-578

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Web page: http://www.elsevier.com/locate/labeco

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Keywords: Gender wage gap Hazard function Sample selection Wage distribution;

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Citations

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Cited by:
  1. Kahn, Lawrence M., 2010. "Labor Market Policy: A Comparative View on the Costs and Benefits of Labor Market Flexibility," IZA Discussion Papers 5100, Institute for the Study of Labor (IZA).
  2. Chiara Mussida & Matteo Picchio, 2014. "The gender wage gap by education in Italy," Journal of Economic Inequality, Springer, vol. 12(1), pages 117-147, March.
  3. Mussida, Chiara & Picchio, Matteo, 2011. "The Trend over Time of the Gender Wage Gap in Italy," IZA Discussion Papers 5932, Institute for the Study of Labor (IZA).
  4. Thomas Grandner & Dieter Gstach, 2012. "Decomposing wage discrimination in Germany and Austria with counterfactual densities," Department of Economics Working Papers wuwp145, Vienna University of Economics, Department of Economics.
  5. Barbara Liberda & Joanna Tyrowicz & Magdalena Smyk, 2013. "Age-productivity patterns in talent occupations for men and women: a decomposition," Working Papers 2013-27, Faculty of Economic Sciences, University of Warsaw.
  6. Alvarado, Rafael, 2012. "Wages differentials in Ecuador: A regional approach with sample selection of Heckman and Oaxaca-Blinder decomposition," MPRA Paper 37470, University Library of Munich, Germany.
  7. Salma Ahmed & Pushkar Maitra, 2011. "A Distributional Analysis of the Gender Wage Gap in Bangladesh," Development Research Unit Working Paper Series 20-11, Monash University, Department of Economics.
  8. Karolina Goraus & Joanna Tyrowicz, 2013. "The Goodwill Effect? Female Access to the Labor Market Over Transition: A Multicountry Analysis," Working Papers 2013-19, Faculty of Economic Sciences, University of Warsaw.
  9. Oliveira, Pedro Rodrigues de & Belluzzo, Walter & Pazello, Elaine Toldo, 2013. "The public–private test score gap in Brazil," Economics of Education Review, Elsevier, vol. 35(C), pages 120-133.

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