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Sources of Bias in Women's Wage Equations: Results Using Sibling Data

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Author Info
David Neumark
Sanders Korenman

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Abstract

We use data on sisters to jointly address heterogeneity bias and endogeneity bias in estimates of wage equations for women. This analysis yields evidence of biases in OLS estimates of wage equations for white and black women, some of which are detected only when these two sources of bias are addressed simultaneously. For both white and black women there is evidence of upward bias in the estimated returns to schooling. Bias-corrected estimates of the effect of marriage on wages, for white women, suggest a positive marriage premium. We also use the sibling data to identify our models, and test a number of other commonly used identifying assumptions as overidentifying restrictions.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4019.

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Date of creation: Mar 1992
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Handle: RePEc:nbr:nberwo:4019

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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.:
  1. Wright, Robert E & Ermisch, John F, 1991. "Gender Discrimination in the British Labour Market: A Reassessment," Economic Journal, Royal Economic Society, vol. 101(406), pages 508-22, May. [Downloadable!] (restricted)
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  2. Sanders Korenman & David Neumark, 1990. "Marriage, Motherhood, and Wages," NBER Working Papers 3473, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Becker, Gary S, 1985. "Human Capital, Effort, and the Sexual Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S33-58, January. [Downloadable!] (restricted)
  4. Ronald Oaxaca, . "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
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  5. repec:fth:prinin:273 is not listed on IDEAS
  6. Thomas Mroz, . "The Sensitivity of an Empirical Model of Married Women's Hours of Work to Economic and Statistical Assumptions," University of Chicago - Population Research Center 84-8, Chicago - Population Research Center. [Downloadable!]
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  7. Mincer, Jacob & Polachek, Solomon, 1974. "Family Investment in Human Capital: Earnings of Women," Journal of Political Economy, University of Chicago Press, vol. 82(2), pages S76-S108, Part II, . [Downloadable!] (restricted)
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  8. Dolton, Peter J & Makepeace, Gerald H, 1987. "Marital Status, Child Rearing and Earnings Differentials in the Graduate Labour Market," Economic Journal, Royal Economic Society, vol. 97(388), pages 897-922, December. [Downloadable!] (restricted)
  9. Goldin, Claudia & Polachek, Solomon, 1987. "Residual Differences by Sex: Perspectives on the Gender Gap in Earnings," American Economic Review, American Economic Association, vol. 77(2), pages 143-51, May. [Downloadable!] (restricted)
  10. O'Neill, June, 1985. "The Trend in the Male-Female Wage Gap in the United States," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages S91-116, January. [Downloadable!] (restricted)
  11. Joshua D. Angrist & Alan B. Krueger, 1990. "Does Compulsory School Attendance Affect Schooling and Earnings?," NBER Working Papers 3572, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  12. Arline T. Geronimus & Sanders Korenman, 1991. "The Socioeconomic Consequences of Teen Childbearing Reconsidered," NBER Working Papers 3701, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Jacob Mincer & Solomon Polacheck, 1974. "Family Investments in Human Capital: Earnings of Women," NBER Chapters, in: Economics of the Family: Marriage, Children, and Human Capital, pages 397-431 National Bureau of Economic Research, Inc. [Downloadable!]
  14. Cox, Donald, 1984. "Panel Estimates of the Effects of Career Interruptions on the Earnings of Women," Economic Inquiry, Oxford University Press, vol. 22(3), pages 386-403, July.
  15. Griliches, Zvi, 1977. "Estimating the Returns to Schooling: Some Econometric Problems," Econometrica, Econometric Society, vol. 45(1), pages 1-22, January. [Downloadable!] (restricted)
  16. David Neumark, 1987. "Employers' discriminatory behavior and the estimation of wage discrimination," Special Studies Papers 227, Board of Governors of the Federal Reserve System (U.S.).
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  1. Shelly Lundberg & Daniel Klepinger & Robert Plotnick, 1998. "Teen Childbearing and Human Capital: Does Timing Matter?," Discussion Papers in Economics at the University of Washington 0057, Department of Economics at the University of Washington. [Downloadable!]
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  2. Wiji Arulampalam & Sonia Bhalotra, 2004. "Inequality in Infant Survival Rates in India: Identification of State-Dependence Effects," Bristol Economics Discussion Papers 04/558, Department of Economics, University of Bristol, UK. [Downloadable!]
  3. Chiara Pronzato, 2008. "Why Educated Mothers don’t make Educated Children? A Statistical Study in the Intergenerational Transmission of Schooling," Discussion Papers 563, Research Department of Statistics Norway. [Downloadable!]
    Other versions:
  4. repec:ese:iserwp: is not listed on IDEAS
  5. Michal Myck & Gillian Paull, 2001. "The role of employment experience in explaining the gender wage gap," IFS Working Papers W01/18, Institute for Fiscal Studies. [Downloadable!]
  6. D. Klepinger & S. Lundberg & R. Plotnick, . "How Does Adolescent Fertility Affect the Human Capital and Wages of Young Women?," Institute for Research on Poverty Discussion Papers 1145-97, University of Wisconsin Institute for Research on Poverty. [Downloadable!]
  7. Waldfogel, Jane, 1998. "Understanding the "Family Gap" in Pay for Women with Children," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 137-56, Winter. [Downloadable!] (restricted)
  8. Shelly Lundberg & Elaina Rose, 1999. "The Effect of Sons and Daughters on Men's Labor Supply and Wages," Discussion Papers in Economics at the University of Washington 0033, Department of Economics at the University of Washington. [Downloadable!]
    Other versions:
  9. Shelly Lundberg & Elaina Rose, 1998. "The Determinants of Specialization Within Marriage," Discussion Papers in Economics at the University of Washington 0048, Department of Economics at the University of Washington. [Downloadable!]
    Other versions:
  10. Alicia Adsera & Barry Chiswick, 2007. "Are there gender and country of origin differences in immigrant labor market outcomes across European destinations?," Journal of Population Economics, Springer, vol. 20(3), pages 495-526, July. [Downloadable!] (restricted)
    Other versions:
  11. Michal Myck & Gillian Paull, 2004. "The role of employment experience in explaining the gender wage gap," IFS Working Papers W04/16, Institute for Fiscal Studies. [Downloadable!]
  12. Harry A. Krashinsky, 2000. "Do Marital Status and Computer Usage Really Change the Wage Structure? Evidence from a Sample of Twins," Working Papers 818, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  13. Jaume Garcia & Pedro J. Hernández & Ángel López Nicolás, 1998. "How Wide Is the Gap? An Investigation of Gender Wage Differences Using Quantile Regression," Economics Working Papers 287, Department of Economics and Business, Universitat Pompeu Fabra. [Downloadable!]
    Other versions:
  14. Wiji Arulampalam & Sonia Bhalotra, 2006. "Persistence in Infant Mortality: Evidence for the Indian States," IZA Discussion Papers 2488, Institute for the Study of Labor (IZA). [Downloadable!]
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