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Endogenous Schooling and the Distribution of the Gender Wage Gap

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Author Info

  • Hansen, Jörgen

    ()
    (Concordia University)

  • Wahlberg, Roger

    (University of Gothenburg)

Abstract

Previous studies on gender wage discrimination have relied on OLS when estimating the wage equations. However, there exists a number of recent studies, devoted to estimating the return to education, that have shown that OLS may produce biased estimates for a number of reasons. Consequently, if we neglect this potential bias in OLS when estimating the gender wage gap, there is every reason to believe that the estimated wage gaps will also be biased. We first estimate wage equations using instrumental variables procedures and panel data, and then investigate the distributions of wage discrimination experienced. We find overwhelming evidence that OLS seriously overestimate the unexplained gender wage gap.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 78.

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Length: 33 pages
Date of creation: Dec 1999
Date of revision:
Publication status: published in: Empirical Economics, 2005, 30 (1), 1-22
Handle: RePEc:iza:izadps:dp78

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Related research

Keywords: individual effects; panel data; endogenous schooling; Return to education; distribution of discrimination;

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Cited by:
  1. Nopo, Hugo, 2004. "Matching as a Tool to Decompose Wage Gaps," IZA Discussion Papers 981, Institute for the Study of Labor (IZA).
  2. Coral del Río Otero & Carlos Gradín Lago & Olga Cantó Sánchez, . "The measurement of gender wage discrimination: the distributional approach revisited," Studies on the Spanish Economy 192, FEDEA.
  3. Juan Pablo Atal & Hugo R. Ñopo & Natalia Winder, 2009. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," IDB Publications 5398, Inter-American Development Bank.
  4. Luis Fernando Gamboa & Blanca Zuluaga, 2011. "Is there a motherhood penalty? Decomposing the family wage gap in Colombia," Working Papers 220, ECINEQ, Society for the Study of Economic Inequality.
  5. Coral del Río Otero & Carlos Gradín Lago & Olga Cantó Sánchez, 2004. "El enfoque distributivo en el análisis de la discriminación salarial por razón de género," Working Papers 0405, Universidade de Vigo, Departamento de Economía Aplicada.
  6. KUEPIE Mathias & DZOSSA Anaclet Désiré & KELODJOUE Samuel, 2013. "Determinants of labor market gender inequalities in Cameroon, Senegal and Mali: the role of human capital and the fertility burden," CEPS/INSTEAD Working Paper Series 2013-08, CEPS/INSTEAD.

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