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A nonparametric decomposition of the Mexican American average wage gap

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  • Ricardo Mora

    (Universidad Carlos III de Madrid, Madrid, Spain)

Abstract

This paper shows that average wage gap decompositions between any two groups of workers can be carried out using nonparametric wage structures. It also proposes an algorithm to correct for sample selection in nonparametric models known as tree structures. This paper studies the wage gap between third-generation Mexican American and non-Hispanic white workers in the southwest. It is shown that the decomposition heavily depends on functional assumptions, and that different aproaches to flexibility may render sufficiently good and similar results Copyright © 2008 John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 23 (2008)
Issue (Month): 4 ()
Pages: 463-485

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Handle: RePEc:jae:japmet:v:23:y:2008:i:4:p:463-485

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  1. Dustmann, C. & Soest, A.H.O. van, 1998. "Language Fluency and Earnings: Estimation with Misclassified Language Indicators," Discussion Paper 1998-120, Tilburg University, Center for Economic Research.
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  4. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
  5. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  6. David Neumark & Sanders Korenman, 1994. "Sources of Bias in Women's Wage Equations: Results Using Sibling Data," Journal of Human Resources, University of Wisconsin Press, vol. 29(2), pages 379-405.
  7. Trejo, Stephen J, 1997. "Why Do Mexican Americans Earn Low Wages?," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1235-68, December.
  8. Tronstad, Russell, 1995. "Importance Of Melon Type, Size, Grade, Container, And Season In Determining Melon Prices," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 20(01), July.
  9. Shoshana Neuman & Ronald Oaxaca, 2004. "Wage Decompositions with Selectivity-Corrected Wage Equations: A Methodological Note," Journal of Economic Inequality, Springer, vol. 2(1), pages 3-10, April.
  10. Bergmann, Barbara R, 1971. "The Effect on White Incomes of Discrimination in Employment," Journal of Political Economy, University of Chicago Press, vol. 79(2), pages 294-313, March-Apr.
  11. Cotterman, R & Peracchi, F, 1992. "Classification and Aggregation: An Application to Industrial Classification in CPS Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 7(1), pages 31-51, Jan.-Marc.
  12. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
  13. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-79, November.
  14. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
  15. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
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Cited by:
  1. Huber, Martin, 2014. "Causal pitfalls in the decomposition of wage gaps," Economics Working Paper Series 1405, University of St. Gallen, School of Economics and Political Science.
  2. Alina Botezat & Ruben R. Seiberlich, 2013. "Educational performance gaps in Eastern Europe," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 21(4), pages 731-756, October.
  3. Sloczynski, Tymon, 2013. "Population Average Gender Effects," IZA Discussion Papers 7315, Institute for the Study of Labor (IZA).
  4. Hugo Nopo, 2003. "Matching as a Tool to Decompose Wage Gaps," Middlebury College Working Paper Series 0406, Middlebury College, Department of Economics.

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