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Gender wage gap studies: consistency and decomposition

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  • Astrid Kunze

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    Abstract

    This paper reviews the empirical literature on the gender wage gap, with particular attention given to the identification of the key parameters in human capital wage regression models. This is of great importance in the literature for two main reasons. First, the main explanatory variables in the wage model, i.e., measures of work experience and time-out-of-work, are endogenous. As a result, applying traditional estimators may lead to inconsistent parameter estimates. Second, empirical evidence on the gender wage gap hinges on estimates of the parameters of interest. Accordingly, their economic meaning may be limited by restrictive assumptions included in wage models. This challenges both researchers and policymakers who require precise measures of the gender wage gap in order to create and enforce efficient equality policies. Copyright Springer-Verlag 2008

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    Bibliographic Info

    Article provided by Springer in its journal Empirical Economics.

    Volume (Year): 35 (2008)
    Issue (Month): 1 (August)
    Pages: 63-76

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    Handle: RePEc:spr:empeco:v:35:y:2008:i:1:p:63-76

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    Related research

    Keywords: Male–female wage differentials; Human capital wage regression model; Model construction and estimation; Wage discrimination; J16; J3; J71;

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    References

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    Cited by:
    1. René Böheim & Klemens Himpele & Helmut Mahringer & Christine Zulehner, 2013. "The gender wage gap in Austria: eppur si muove!," Empirica, Springer, vol. 40(4), pages 585-606, November.
    2. Christofides, Louis N. & Polycarpou, Alexandros & Vrachimis, Konstantinos, 2013. "Gender wage gaps, ‘sticky floors’ and ‘glass ceilings’ in Europe," Labour Economics, Elsevier, vol. 21(C), pages 86-102.
    3. Danijel Nestic, 2010. "The Gender Wage Gap in Croatia – Estimating the Impact of Differing Rewards by Means of Counterfactual Distributions," Croatian Economic Survey, The Institute of Economics, Zagreb, vol. 12(1), pages 83-119, April.
    4. Braakmann, Nils, 2011. "Neo-Nazism and discrimination against foreigners: A direct test of taste discrimination," Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48739, Verein für Socialpolitik / German Economic Association.
    5. 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.

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