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Occupational segregation and gender wage differences: evidence from Urban Colombia

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  • Jairo Gillermo Isaza Castro

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Abstract

This paper assesses the effects of occupational segregation on the gender wage gap in urban Colombia between 1986 and 2000. The empirical methodology involves a two-step procedure whereby the occupational distributions of workers by gender are modelled using a multinomial logit model in the first stage. In the second stage, the multinomial logit estimates are used not only to derive a counterfactual occupational distribution of women in the absence of workplace discrimination but also to correct for selectivity bias in the wage equations for each occupational category using the procedure suggested by Lee (1983). Besides the explained and unexplained components in conventional decompositions of the gender wage gap, this methodology differentiates between the justified and unjustified effects of the gender allocation of workers across occupational categories. The results for urban Colombia indicate that controlling for selectivity bias at the occupational category level is found to be relevant in all years reviewed in this study. They also suggest that a changing composition of the female labour supply in terms of unobservables (i.e., ability and motivation) is playing a role in the dramatic reduction of the observed wage gap.

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Bibliographic Info

Paper provided by CENTRO DE INVESTIGACIONES EN VIOLENCIA, INSTITUCIONES Y DESARROLLO ECONÓMICO (VIDE) in its series SERIE DE DOCUMENTOS EN ECONOMÍA Y VIOLENCIA with number 006889.

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Length: 50
Date of creation: 09 Apr 2010
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Handle: RePEc:col:000137:006889

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Keywords: occupational segregation; gender wage gap; multinomial logit; selection bias; Colombia;

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  1. Becker, Gary S., 1971. "The Economics of Discrimination," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226041162, March.
  2. Randall S. Brown & Marilyn Moon & Barbara S. Zoloth, 1980. "Incorporating Occupational Attainment in Studies of Male-Female Earnings Differentials," Journal of Human Resources, University of Wisconsin Press, vol. 15(1), pages 3-28.
  3. Simon Appleton, 1996. "The gender wage gap in three African countries," Economics Series Working Papers WPS/1996-07, University of Oxford, Department of Economics.
  4. François Bourguignon & Martin Fournier & Marc Gurgand, 2004. "Selection Bias Corrections Based on the Multinomial Logit Model: Monte-Carlo Comparisons," DELTA Working Papers 2004-20, DELTA (Ecole normale supérieure).
  5. 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.
  6. Borghans, Lex & Groot, Loek, 1999. "Educational presorting and occupational segregation," Labour Economics, Elsevier, vol. 6(3), pages 375-395, September.
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