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Generalized measures of wage differentials

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  • Philippe Van Kerm

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Abstract

This paper considers measures of wage differentials not solely determined by mean comparisons but summarizing differences across complete wage distributions. The approach builds on considerations of risk or inequality aversion and on standard expected utility concepts. In an application to the gender pay gap in Luxembourg the disadvantage of women persists according to the proposed measures: lower mean wages for women are not compensated by differences in higher moments of wage distributions (e.g., by less dispersion) at least for realistic assumptions about women preferences toward risk and inequality. The paper also illustrates an original empirical model for wage distributions in the presence of covariates and under endogenous labour market participation. Copyright Springer-Verlag 2013

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Bibliographic Info

Article provided by Springer in its journal Empirical Economics.

Volume (Year): 45 (2013)
Issue (Month): 1 (August)
Pages: 465-482

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Handle: RePEc:spr:empeco:v:45:y:2013:i:1:p:465-482

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Keywords: Wage differentials; Expected utility; Singh–Maddala distribution; Endogenous selection; Luxembourg; D63; J31; J70;

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Cited by:
  1. SELEZNEVA Ekaterina & VAN KERM Philippe, 2013. "Inequality-adjusted gender wage differentials in Germany," CEPS/INSTEAD Working Paper Series 2013-18, CEPS/INSTEAD.
  2. Verme, Paolo, 2009. "Happiness, Deprivation and the Alter Ego," IRISS Working Paper Series 2009-18, IRISS at CEPS/INSTEAD.
  3. Yalonetzky, Gaston, 2011. "Measuring group disadvantage with inter-distributional inequality indices: A critical review and some amendments to existing indices," Economics Discussion Papers 2011-46, Kiel Institute for the World Economy.
  4. VAN KERM Philippe & YU Seunghee & CHOE Chung, 2014. "Wage differentials between native, immigrant and cross-border workers: Evidence and model comparisons," CEPS/INSTEAD Working Paper Series 2014-05, CEPS/INSTEAD.

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