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Occupational segregation, selection effects and gender wage differences: evidence from urban Colombia

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  • Jairo Guillermo Isaza Castro

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Abstract

This paper assesses the effects of occupational segregation on the gender wage gap in urban Colombia between 1986 and 2000. The empirical methodology involves a two step procedure where by the occupational distributions ofworkers by gender aremodelled using a multinomial logit model in the first stage. In the second stage, the multinomial logit estimates are used not only to derive a counterfactual occupational distribution of women in the absence of workplace discrimination but also to correct for selectivity bias in thewage equations for each occupational category using the procedure suggested by Lee (1983). Besides the explained and unexplained components in conventional decompositions of the gender wage gap, this methodology differentiates between the justified and unjustified effects of the gender allocation ofworkers across occupational categories. The results for urban Colombia indicate that controlling for selectivity bias at the occupational category level is found to be relevant in all years reviewed in this study. They also suggest that a changing composition of the female labour supply in terms of un observables (i.e., ability and motivation) is playing a role in the dramatic reduction of the observed wage gap.

Suggested Citation

  • Jairo Guillermo Isaza Castro, 2014. "Occupational segregation, selection effects and gender wage differences: evidence from urban Colombia," REVISTA APUNTES DEL CENES, UNIVERSIDAD PEDAGOGICA Y TECNOLOGICA DE COLOMBIA, June.
  • Handle: RePEc:col:000152:013046
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    References listed on IDEAS

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    1. Grazier, S. & Sloane, P.J., 2008. "Accident risk, gender, family status and occupational choice in the UK," Labour Economics, Elsevier, vol. 15(5), pages 938-957, October.
    2. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-838, May.
    3. Lee, Lung-Fei, 1983. "Generalized Econometric Models with Selectivity," Econometrica, Econometric Society, vol. 51(2), pages 507-512, March.
    4. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 31(3), pages 129-137.
    5. Randall S. Brown & Marilyn Moon & Barbara S. Zoloth, 1980. "Incorporating Occupational Attainment in Studies of Male-Female Earnings Differentials," Journal of Human Resources, University of Wisconsin Press, vol. 15(1), pages 3-28.
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    9. François Bourguignon & Martin Fournier & Marc Gurgand, 2007. "Selection Bias Corrections Based On The Multinomial Logit Model: Monte Carlo Comparisons," Journal of Economic Surveys, Wiley Blackwell, vol. 21(1), pages 174-205, February.
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    11. Meng, Xin & Miller, Paul, 1995. "Occupational Segregation and Its Impact on Gender Wage Discrimination in China's Rural Industrial Sector," Oxford Economic Papers, Oxford University Press, vol. 47(1), pages 136-155, January.
    12. Karmel, T & Maclachlan, M, 1988. "Occupational Sex Segregation--Increasing or Decreasing?," The Economic Record, The Economic Society of Australia, vol. 64(186), pages 187-195, September.
    13. Rocío Ribero, 2003. "Gender Dimensions Of Non-Formal Employment In Colombia," DOCUMENTOS CEDE 002762, UNIVERSIDAD DE LOS ANDES-CEDE.
    14. Liu, Pak-Wai & Zhang, Junsen & Chong, Shu-Chuen, 2004. "Occupational segregation and wage differentials between natives and immigrants: evidence from Hong Kong," Journal of Development Economics, Elsevier, vol. 73(1), pages 395-413, February.
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    More about this item

    Keywords

    occupational segregation; gender wage gap; multinomial logit; selection bias; Colombia.;

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models

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