Bounding Estimates of Wage Discrimination
AbstractThe Blinder Oaxaca decomposition method for defining wage differentials (generally referred to as discrimination) from the wage equations of two groups has had a wide degree of application. However, the decomposition measures can vary dramatically depending on the definition of the non-discriminatory wage chosen for comparison. This paper uses a form of extreme bounds analysis to define the limits on the measure of discrimination that can be obtained from these decompositions. A simple application is presented to demonstrate the use of the bootstrap to define the distributions of the discrimination measure.
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Bibliographic InfoPaper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 879.
Length: 26 pages
Date of creation: 2003
Date of revision:
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Extreme Bounds Analysis; Discrimination; Bootstrap;
Other versions of this item:
- J7 - Labor and Demographic Economics - - Labor Discrimination
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
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