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Gender Wage Gap : A Semi-parametric Approach with Sample Selection Correction

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  • Matteo PICCHIO

    ()
    (Tilburg University, Department of Economics, CentER, ReflecT and IZA, Germany)

  • Chiara MUSSIDA

    ()
    (Department of Economics and Social Sciences, Università Cattolica, Milan and Prometeia spa, Bologna)

Abstract

Sizeable gender differences in employment rates are observed in many countries. Sample selection into the workforce might therefore be a relevant issue when estimating gender wage gaps. This paper proposes a new semi-parametric estimator of densities in the presence of covariates which incorporates sample selection. We describe a simulation algorithm to implement counterfactual comparisons of densities. The proposed methodology is used to investigate the gender wage gap in Italy. It is found that when sample selection is taken into account gender wage gap widens, especially at the bottom of the wage distribution. Explanations are offered for this empirical finding.

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Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2010005.

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Length: 31
Date of creation: 12 Mar 2010
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Handle: RePEc:ctl:louvir:2010005

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Keywords: gender wage gap; hazard function; sample selection; glass ceiling; sticky floor;

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Citations

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Cited by:
  1. Oliveira, Pedro Rodrigues de & Belluzzo, Walter & Pazello, Elaine Toldo, 2013. "The public–private test score gap in Brazil," Economics of Education Review, Elsevier, Elsevier, vol. 35(C), pages 120-133.
  2. Barbara Liberda & Joanna Tyrowicz & Magdalena Smyk, 2013. "Age-productivity patterns in talent occupations for men and women: a decomposition," Working Papers 2013-27, Faculty of Economic Sciences, University of Warsaw.
  3. Mussida, Chiara & Picchio, Matteo, 2011. "The Trend over Time of the Gender Wage Gap in Italy," IZA Discussion Papers 5932, Institute for the Study of Labor (IZA).
  4. Lawrence M. Kahn, 2012. "Labor market policy: A comparative view on the costs and benefits of labor market flexibility," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 31(1), pages 94-110, December.
  5. Mussida, Chiara & Picchio, Matteo, 2012. "The Gender Wage Gap by Education in Italy," IZA Discussion Papers 6428, Institute for the Study of Labor (IZA).
  6. Thomas Grandner & Dieter Gstach, 2012. "Decomposing wage discrimination in Germany and Austria with counterfactual densities," Department of Economics Working Papers wuwp145, Vienna University of Economics, Department of Economics.
  7. Salma Ahmed & Pushkar Maitra, 2011. "A Distributional Analysis of the Gender Wage Gap in Bangladesh," Development Research Unit Working Paper Series, Monash University, Department of Economics 20-11, Monash University, Department of Economics.
  8. Karolina Goraus & Joanna Tyrowicz, 2013. "The Goodwill Effect? Female Access to the Labor Market Over Transition: A Multicountry Analysis," Working Papers 2013-19, Faculty of Economic Sciences, University of Warsaw.
  9. Alvarado, Rafael, 2012. "Wages differentials in Ecuador: A regional approach with sample selection of Heckman and Oaxaca-Blinder decomposition," MPRA Paper 37470, University Library of Munich, Germany.

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