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Gender Wage Gap: A Semi-Parametric Approach With Sample Selection Correction

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  • Picchio, M.
  • Mussida, C.

    (Tilburg University, Center for Economic Research)

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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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2010-16.

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Date of creation: 2010
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Handle: RePEc:dgr:kubcen:201016

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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. Chiara Mussida & Matteo Picchio, 2014. "The trend over time of the gender wage gap in Italy," Empirical Economics, Springer, vol. 46(3), pages 1081-1110, May.
  2. Chiara Mussida & Matteo Picchio, 2014. "The gender wage gap by education in Italy," Journal of Economic Inequality, Springer, vol. 12(1), pages 117-147, March.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. Oliveira, Pedro Rodrigues de & Belluzzo, Walter & Pazello, Elaine Toldo, 2013. "The public–private test score gap in Brazil," Economics of Education Review, Elsevier, vol. 35(C), pages 120-133.
  8. Salma Ahmed & Pushkar Maitra, 2011. "A Distributional Analysis of the Gender Wage Gap in Bangladesh," Development Research Unit Working Paper Series 20-11, Monash University, Department of Economics.
  9. 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.

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