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Bootstrapping the European Gender Wage Gap

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  • Eva Rueckert
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    Abstract

    This paper investigates the gender wage gap in Denmark, the Netherlands, France and Spain by bootstrapping the Oaxaca-Blinder decomposition. The bootstrap method is used to compute confidence intervals and to perform hypothesis tests for the (disaggregated) explained and unexplained components of the national earnings di?erentials between men and women. From the subset of paid employees selected from the European Community Household Panel (ECHP) it is revealed that the respective national gender wage gaps are significant at the 5% level. The empirical bootstrap distribution of the male-female earnings di?erential reveals that the average di?erentials of the four selected countries lie very close together, whereas the bootstrap standard deviations of the gaps do not agree.

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    Bibliographic Info

    Paper provided by Department of Economics, School of Management and Languages, Heriot Watt University in its series Working Papers with number E04.

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    Date of creation: 2003
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    Handle: RePEc:hwe:hwecwp:2003-e04

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    Related research

    Keywords: Gender Wage Gap; ECHP; Bootstrapping;

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    References

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    1. Dekkers, G.J.M. & Nelissen, J.H.M., 2001. "The Components of Income Inequality in Belgium: Applying the Shorrocks-Decomposition with Bootstrapping," Discussion Paper 2001-66, Tilburg University, Center for Economic Research.
    2. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
    3. Blau, Francine D & Kahn, Lawrence M, 1992. "The Gender Earnings Gap: Learning from International Comparisons," American Economic Review, American Economic Association, vol. 82(2), pages 533-38, May.
    4. Mills, Jeffrey A & Zandvakili, Sourushe, 1997. "Statistical Inference via Bootstrapping for Measures of Inequality," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 12(2), pages 133-50, March-Apr.
    5. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
    6. Oaxaca, Ronald, 1973. "Male-Female Wage Differentials in Urban Labor Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 693-709, October.
    7. Machin, Stephen & Puhani, Patrick A., 2002. "Subject of Degree and the Gender Wage Differential: Evidence from the UK and Germany," IZA Discussion Papers 553, Institute for the Study of Labor (IZA).
    8. 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.
    9. Oaxaca, Ronald L. & Ransom, Michael R., 1994. "On discrimination and the decomposition of wage differentials," Journal of Econometrics, Elsevier, vol. 61(1), pages 5-21, March.
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