Advanced Search
MyIDEAS: Login to save this paper or follow this series

Wage Comparisons -A Selectivity Bias

Contents:

Author Info

  • Reuben Gronau

Abstract

The economics of information have been established by now as an integral part of economic analysis. However, surprisingly little has been written on the implications of search (and in particular, job search) for the estimation of the wage function and its ramifications in such cases as the estimation of the determinants of labor force participation, age-earning profiles, rates of return and rates of depreciation of human capital, degree of discrimination, etc. Given a wage offer distribution, the parameters of the observed wage distribution depend on the intensity of search. The lower a person’s wage demands the greater the chance of his finding an acceptable job, but the lower the wage he expects to receive and the wider the dispersion of acceptable wages around their mean. On the other hand, the job seeker may opt for a more ambitious search strategy, raising his minimum wage demand and consequently increasing the risk of remaining unemployed, but also increasing the expected wage and decreasing the dispersion of available offers. Models of wage offer distribution have traditionally been based on empirical observation of observed wage distribution. This approach may involve certain biases when applied to secondary labor groups – married women, teenagers and the aged. This paper attempts to point out some of these biases and suggests a method for their correction.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.nber.org/papers/w0013.pdf
Download Restriction: no

Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0013.

as in new window
Length:
Date of creation: Oct 1973
Date of revision:
Publication status: published as Gronau, Reuben. "Wage Comparisons -A Selectivity Bias." Journal of Political Economy, Vol. 82, No. 6, (November/December 1974).
Handle: RePEc:nbr:nberwo:0013

Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Phone: 617-868-3900
Email:
Web page: http://www.nber.org
More information through EDIRC

Related research

Keywords:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Rothschild, Michael, 1973. "Models of Market Organization with Imperfect Information: A Survey," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 81(6), pages 1283-1308, Nov.-Dec..
  2. Gronau, Reuben, 1971. "Information and Frictional Unemployment," American Economic Review, American Economic Association, vol. 61(3), pages 290-301, June.
  3. George J. Stigler, 1961. "The Economics of Information," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 69, pages 213.
  4. McCall, John J, 1970. "Economics of Information and Job Search," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 84(1), pages 113-26, February.
  5. Ben-Porath, Yoram, 1973. "Labor-Force Participation Rates and the Supply of Labor," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 81(3), pages 697-704, May-June.
  6. Mortensen, Dale T, 1970. "Job Search, the Duration of Unemployment, and the Phillips Curve," American Economic Review, American Economic Association, vol. 60(5), pages 847-62, December.
  7. Nelson, Phillip, 1970. "Information and Consumer Behavior," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 78(2), pages 311-29, March-Apr.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. James J. Heckman & Thomas E. MaCurdy, 1982. "New Methods for Estimating Labor Supply Functions: A Survey," NBER Working Papers 0858, National Bureau of Economic Research, Inc.
  2. David Card, 1997. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," NBER Working Papers 5927, National Bureau of Economic Research, Inc.
  3. Victor R. Fuchs, 1973. "Short-Run and Long-Run Prospects for Female Earnings," NBER Working Papers 0020, National Bureau of Economic Research, Inc.
  4. Gordon Dahl, 1997. "Mobility and the Returns to Education: Testing A Roy Model With Multiple Markets," Working Papers 760, Princeton University, Department of Economics, Industrial Relations Section..
  5. Casey B. Mulligan & Yona Rubinstein, 2004. "The Closing of the Gender Gap as a Roy Model Illusion," NBER Working Papers 10892, National Bureau of Economic Research, Inc.
  6. Tadashi Yamada & Tetsuji Yamada, 1985. "Part-Time Work vs. Full-Time Work of Married Women in Japan," NBER Working Papers 1608, National Bureau of Economic Research, Inc.
  7. Casey B. Mulligan & Yona Rubinstein, 2005. "Selection, Investment, and Women's Relative Wages Since 1975," NBER Working Papers 11159, National Bureau of Economic Research, Inc.
  8. Daniel S. Hamermesh & Stephen G. Donald, 2004. "The Effect of College Curriculum on Earnings: Accounting for Non-Ignorable Non-Response Bias," NBER Working Papers 10809, National Bureau of Economic Research, Inc.
  9. Daniel S. Hamermesh, 1999. "The Art of Labormetrics," NBER Working Papers 6927, National Bureau of Economic Research, Inc.
  10. Evgeniy M. Ozhegov, 2014. "The Underwriting, Choice And Performance Of Government-Insured Mortgages In Russia," HSE Working papers WP BRP 31/FE/2014, National Research University Higher School of Economics.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:0013. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.