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Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps

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Author Info
Claudia Olivetti
Barbara Petrongolo

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Abstract

We analyze gender wage gaps correcting for sample selection induced by nonemployment. We recover wages for the nonemployed using alternative imputation techniques, simply requiring assumptions on the position of imputed wages with respect to the median. We obtain higher median wage gaps on imputed rather than actual wage distributions for several OECD countries. However, this difference is small in the United States, the United Kingdom, and most central and northern EU countries and becomes sizable in southern EU countries, where gender employment gaps are high. Selection correction explains nearly half of the observed negative correlation between wage and employment gaps. (c) 2008 by The University of Chicago Press. All rights reserved..

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File URL: http://www.journals.uchicago.edu/doi/pdf/10.1086/589458
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Publisher Info
Article provided by University of Chicago Press in its journal Journal of Labor Economics.

Volume (Year): 26 (2008)
Issue (Month): 4 (October)
Pages: 621-654
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Handle: RePEc:ucp:jlabec:v:26:y:2008:i:4:p:621-654

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. de la Rica, Sara & Dolado, Juan J. & Llorens, Vanesa, 2005. "Ceiling and Floors: Gender Wage Gaps by Education in Spain," IZA Discussion Papers 1483, Institute for the Study of Labor (IZA). [Downloadable!]
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  2. Manski, C.F., 1990. "The Selection Problem," Working papers 90-12, Wisconsin Madison - Social Systems.
  3. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  4. Raquel Fernandez & Alessandra Fogli, 2005. "Culture: An Empirical Investigation of Beliefs, Work, and Fertility," NBER Working Papers 11268, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Amitabh Chandra, 2003. "Is the Convergence of the Racial Wage Gap Illusory?," NBER Working Papers 9476, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Ghazala Azmat & Maia Güell & Alan Manning, 2004. "Gender Gaps in Unemployment Rates in OECD Countries," CEP Discussion Papers dp0607, Centre for Economic Performance, LSE. [Downloadable!]
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  7. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  8. Francine D. Blau & Lawrence M. Kahn, 2003. "Understanding International Differences in the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 106-144, January. [Downloadable!]
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  9. James Albrecht & Aico van Vuuren & Susan Vroman, 2004. "Decomposing the Gender Wage Gap in the Netherlands with Sample Selection Adjustments," Tinbergen Institute Discussion Papers 04-123/3, Tinbergen Institute. [Downloadable!]
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  10. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, vol. 63(250), pages S29-62, Suppl.. [Downloadable!] (restricted)
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  16. Juhn, Chinhui, 1992. "Decline of Male Labor Market Participation: The Role of Declining Market Opportunities," The Quarterly Journal of Economics, MIT Press, vol. 107(1), pages 79-121, February. [Downloadable!] (restricted)
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  18. 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. [Downloadable!]
  19. Chinhui Juhn, 2003. "Labor market dropouts and trends in the wages of black and white men," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 56(4), pages 643-662, July. [Downloadable!] (restricted)
  20. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2004. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wages Distribution," IZA Discussion Papers 1373, Institute for the Study of Labor (IZA). [Downloadable!]
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  21. Altonji, Joseph G. & Blank, Rebecca M., 1999. "Race and gender in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 48, pages 3143-3259 Elsevier. [Downloadable!] (restricted)
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  22. Heinze, Anja & Beninger, Denis & Beblo, Miriam & Laisney, François, 2003. "Measuring Selectivity-Corrected Gender Wage Gaps in the EU," ZEW Discussion Papers 03-74, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Tindara ADDABBO & Donata Favaro, 2007. "Education and wage differentials by gender in Italy," CHILD Working Papers wp04_07, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY. [Downloadable!]
  2. Chen, Natalie & Conconi, Paola & Perroni, Carlo, 2007. "Does Migration Empower Married Women?," The Warwick Economics Research Paper Series (TWERPS) 812, University of Warwick, Department of Economics. [Downloadable!]
    Other versions:
  3. Black, Sandra E. & Spitz-Oener, Alexandra, 2007. "Explaining Women?s Success: Technological Change and the Skill Content of Women?s Work," ZEW Discussion Papers 07-033, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  4. Tomas Kögel, 2006. "An explanation of the positive correlation between fertility and female employment across Western European countries," Discussion Paper Series 2006_11, Department of Economics, Loughborough University. [Downloadable!]
  5. Natalie Chen & Paola Conconi & Carlo Perroni, 2007. "Women's Earning Power and the "Double Burden" of Market and Household Work," SOEPpapers 20, DIW Berlin, The German Socio-Economic Panel (SOEP). [Downloadable!]
    Other versions:
  6. Claudia Olivetti, . "Gender and the Labour Market: An International Perspective and the case of Italy," Boston University - Department of Economics - Working Papers Series wp2009-010, Boston University - Department of Economics. [Downloadable!]
  7. de la Rica, Sara & Dolado, Juan José & García-Peñalosa, Cecilia, 2008. "On Gender Gaps and Self-fulfilling Expectations: Theory, Policies and Some Empirical Evidence," IZA Discussion Papers 3553, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Luís Delfim Santos & José Varejão, 2006. "Employment, Pay and Discrimination in the Tourism Industry," FEP Working Papers 205, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  9. Dragana Djurdjevic & Sergiy Radyakin, 2007. "Decomposition of the Gender Wage Gap Using Matching: An Application for Switzerland," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 143(IV), pages 365-396, December. [Downloadable!]
    Other versions:
  10. Pedro Carneiro & Sokbae 'Simon' Lee, 2009. "Trends in quality-adjusted skill premia in the United States, 1960-2000," CeMMAP working papers CWP02/09, Centre for Microdata Methods and Practice, Institute for Fiscal Studies. [Downloadable!]
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