Endogenous Schooling and the Distribution of the Gender Wage Gap
AbstractPrevious 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 InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 78.
Length: 33 pages
Date of creation: Dec 1999
Date of revision:
Publication status: published in: Empirical Economics, 2005, 30 (1), 1-22
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Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Jörgen Hansen & Roger Wahlberg, 2005. "Endogenous schooling and the distribution of the gender wage gap," Empirical Economics, Springer, vol. 30(1), pages 1-22, January.
- J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
- J7 - Labor and Demographic Economics - - Labor Discrimination
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