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Bootstrapping the European Gender Wage Gap

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  • Rueckert, Eva

    (CERT, Heriot-Watt University, Edinburgh)

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    Abstract

    This paper investigates the gender wage gap in Denmark, the Netherlands, France and Spain by boostrapping the Oaxaca-Blinder decomposition. The boostrap method is used to compute confidence intervals and to perform hypothesis tests for the (disaggregated) explained and unexplained components of the national earnings differentials 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 boostrap distribution of the male-female earnings differential reveals that the average differentials of the four selected countries lie very close together, whereas the boostrap standard deviations of the gaps do not agree.

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    Bibliographic Info

    Paper provided by IRISS at CEPS/INSTEAD in its series IRISS Working Paper Series with number 2003-10.

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    Date of creation: Jun 2003
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    Handle: RePEc:irs:iriswp:2003-10

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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. 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.
    3. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
    4. Jeffrey A. Mills & Sourushe Zandvakili, 1999. "Statistical Inference via Bootstrapping for Measures of Inequality," Macroeconomics 9902003, EconWPA.
    5. 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.
    6. 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.
    7. Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
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