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Decomposing the Gender Wage Gap with Sample Selection Adjustment: Evidence from Colombia

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  • Alejandro Badel

    ()
    (Federal Reserve Bank of St. Louis)

  • Ximena Peña

    ()
    (Universidad de Los Andes)

Abstract

Despite the remarkable improvement of female labor market characteristics, a sizeable gender wage gap exists in Colombia. We employ quantile regression techniques to examine the degree to which current small differences in the distribution of observable characteristics can explain the gender gap. We find that the gap is largely explained by gender differences in the rewards to labor market characteristics and not by differences in the distribution of characteristics. We claim that Colombian women experience both a “glass ceiling effect’’ and also (what we call) a “quicksand floor effect” because gender differences in returns to characteristics primarily affect women at the top and the bottom of the distribution. Also, self selection into the labor force is crucial for gender gaps: if all women participated in the labor force, the observed gap would be roughly 50% larger at all quantiles.

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Bibliographic Info

Article provided by Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines in its journal Revista de Analisis Economico.

Volume (Year): 25 (2010)
Issue (Month): 2 (Diciembre)
Pages: 169-191

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Handle: RePEc:ila:anaeco:v:25:y:2010:i:2:p:169-191

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Keywords: Gender gap; Mincer; wage; semiparametric; quantile regression; selection. JEL Classification: C21; J22; J31.;

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References

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  1. Albrecht, James & Björklund, Anders & Vroman, Susan, 2001. "Is There a Glass Ceiling in Sweden?," IZA Discussion Papers 282, Institute for the Study of Labor (IZA).
  2. Llorens, Vanessa & De la Rica Goiricelaya, Sara & Dolado, Juan J., 2004. "Ceilings and Floors? Gender Wage Gaps by Education in Spain," DFAEII Working Papers 2005-01, University of the Basque Country - Department of Foundations of Economic Analysis II.
  3. Albrecht, James & van Vuuren, Aico & Vroman, Susan, 2009. "Counterfactual distributions with sample selection adjustments: Econometric theory and an application to the Netherlands," Labour Economics, Elsevier, vol. 16(4), pages 383-396, August.
  4. Suzanne Duryea & Olga Lucia Jaramillo & Carmen Pagés-Serra, 2003. "Latin American Labor Markets in the 1990s: Deciphering the Decade," Research Department Publications 4331, Inter-American Development Bank, Research Department.
  5. Hugo Ñopo, 2006. "The Gender Wage Gap in Chile 1992-2003 from a Matching Comparisons Perspective," Research Department Publications 4463, Inter-American Development Bank, Research Department.
  6. Klein, Roger W & Spady, Richard H, 1993. "An Efficient Semiparametric Estimator for Binary Response Models," Econometrica, Econometric Society, vol. 61(2), pages 387-421, March.
  7. Moshe Buchinsky, 1998. "The dynamics of changes in the female wage distribution in the USA: a quantile regression approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(1), pages 1-30.
  8. Alejandro Hoyos & Hugo Nopo & Ximena Pena, 2010. "The Persistent Gender Earnings Gap in Colombia, 1994-2006," Research Department Publications 4673, Inter-American Development Bank, Research Department.
  9. Carneiro, Pedro & Loken, Katrine Vellesen & Salvanes, Kjell G., 2011. "A Flying Start? Maternity Leave Benefits and Long Run Outcomes of Children," IZA Discussion Papers 5793, Institute for the Study of Labor (IZA).
  10. David H. Autor & Lawrence F. Katz & Melissa S. Kearney, 2005. "Rising Wage Inequality: The Role of Composition and Prices," Harvard Institute of Economic Research Working Papers 2096, Harvard - Institute of Economic Research.
  11. Ganguli, Ina & Terrell, Katherine, 2005. "Wage Ceilings and Floors: The Gender Gap in Ukraine's Transition," IZA Discussion Papers 1776, Institute for the Study of Labor (IZA).
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Citations

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Cited by:
  1. Ximena Peña, 2006. "Assortative Matching and the Education Gap," Working Papers gueconwpa~06-06-12, Georgetown University, Department of Economics.
  2. Carmiña O. Vargas, . "Desigualdad de salarios en Colombia: evidencia a partir de encuestas de hogares 1984 -2010," Borradores de Economia 661, Banco de la Republica de Colombia.
  3. Christian Manuel Posso Suárez, . "Desigualdad salarial en Colombia 1984-2005: cambios en la composición del mercado laboral y retornos a la educación post-secundaria," Borradores de Economia 529, Banco de la Republica de Colombia.
  4. Hoyos, Alejandro & Nopo, Hugo & Peña, Ximena, 2010. "The Persistent Gender Earnings Gap in Colombia, 1994-2006," IZA Discussion Papers 5073, Institute for the Study of Labor (IZA).
  5. Arturo Galindo & Marcela Melendez, 2010. "Corporate Tax Stimulus and Investment in Colombia," Research Department Publications 4664, Inter-American Development Bank, Research Department.
  6. Raymundo M. Campos-Vazquez & Eva O. Arceo-Gomez, 2013. "Evolución de la brecha salarial de género en México," Serie documentos de trabajo del Centro de Estudios Económicos 2013-07, El Colegio de México, Centro de Estudios Económicos.
  7. Marcela Ibanez & Gerhard Riener & Ashok Rai, 2013. "Sorting Through Affirmative Action: Two Field Experiments in Colombia," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 150, Courant Research Centre PEG.
  8. Luis Armando Galvis, 2010. "Diferencias salariales por género y región en Colombia: una aproximación con regresión por cuantiles," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL 007428, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
  9. Ramiro Rodríguez Revilla, 2013. "Equidad Laboral para Mujeres Mayores de 40 Años en Colombia," CEDLAS, Working Papers 0144, CEDLAS, Universidad Nacional de La Plata.
  10. Isabelle Joumard & Juliana Londoño Vélez, 2013. "Income Inequality and Poverty in Colombia - Part 1. The Role of the Labour Market," OECD Economics Department Working Papers 1036, OECD Publishing.
  11. Fernando Borraz & Cecilia Robano, 2010. "Brecha Salarial en Uruguay," Revista de Analisis Economico – Economic Analysis Review, Ilades-Georgetown University, Universidad Alberto Hurtado/School of Economics and Bussines, vol. 25(1), pages 49-77, June.
  12. 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.
  13. Sara de la Rica & Luz Karime Abadía Alvarado, 2011. "Changes in the Gender Wage Gap and the Role of Education and Other Job Characteristics: Colombia 1994-2010," VNIVERSITAS ECONÓMICA 010088, UNIVERSIDAD JAVERIANA - BOGOTÁ.

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