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Propensity score matching without conditional independence assumption--with an application to the gender wage gap in the United Kingdom

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  • Markus Frölich

Abstract

Propensity score matching is frequently used for estimating average treatment effects. Its applicability, however, is not confined to treatment evaluation. In this paper, it is shown that propensity score matching does not hinge on a selection on observables assumption and can be used to estimate not only adjusted means but also their distributions, even with non-i.i.d. sampling. Propensity score matching is used to analyze the gender wage gap among graduates in the UK. It is found that subject of degree contributes substantially to explaining the gender wage gap, particularly at higher quantiles of the wage distribution. Copyright Royal Economic Society 2007

Suggested Citation

  • Markus Frölich, 2007. "Propensity score matching without conditional independence assumption--with an application to the gender wage gap in the United Kingdom," Econometrics Journal, Royal Economic Society, vol. 10(2), pages 359-407, July.
  • Handle: RePEc:ect:emjrnl:v:10:y:2007:i:2:p:359-407
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    Cited by:

    1. Annabelle Krause & Ulf Rinne & Simone Schüller, 2015. "Kick It Like Özil? Decomposing the Native-Migrant Education Gap," International Migration Review, Wiley Blackwell, vol. 49(3), pages 757-789, September.
    2. Caliendo, Marco & Lee, Wang-Sheng, 2013. "Fat chance! Obesity and the transition from unemployment to employment," Economics & Human Biology, Elsevier, vol. 11(2), pages 121-133.
    3. Bourdon, Jean & Michaelowa, Katharina & Frölich, Markus, 2007. "Teacher shortages, teacher contracts and their impact on education in Africa," HWWI Research Papers 2-10, Hamburg Institute of International Economics (HWWI).
    4. Salvatore Bimonte & Antonella D’Agostino, 2021. "Tourism development and residents’ well-being: Comparing two seaside destinations in Italy," Tourism Economics, , vol. 27(7), pages 1508-1525, November.
    5. Dusan Paredes, 2012. "The impact of the occupations and economic activities on the gender wage gap using a counterfactual framework," Documentos de Trabajo en Economia y Ciencia Regional 22, Universidad Catolica del Norte, Chile, Department of Economics, revised Apr 2012.
    6. Boris Hirsch & Marion König & Joachim Möller, 2013. "Is There a Gap in the Gap? Regional Differences in the Gender Pay Gap," Scottish Journal of Political Economy, Scottish Economic Society, vol. 60(4), pages 412-439, September.
    7. Sloczynski, Tymon, 2013. "Population Average Gender Effects," IZA Discussion Papers 7315, Institute of Labor Economics (IZA).
    8. Simone Bertoli & Francesca Marchetta, 2014. "Migration, Remittances and Poverty in Ecuador," Journal of Development Studies, Taylor & Francis Journals, vol. 50(8), pages 1067-1089, August.
    9. Andrea Albanese & Bart Cockx & Yannick Thuy, 2020. "Working time reductions at the end of the career: Do they prolong the time spent in employment?," Empirical Economics, Springer, vol. 59(1), pages 99-141, July.
    10. Loris Guery & Anne Stévenot, 2017. "L’actionnariat salarié favorise-t-il la diffusion d’information aux salariés et leur participation aux décisions stratégiques ? Une question de gouvernance d’entreprise," Post-Print hal-02500129, HAL.
    11. Caliendo, Marco & Gielen, Anne C. & Mahlstedt, Robert, 2015. "Home-ownership, unemployed’s job search behavior and post-unemployment outcomes," Economics Letters, Elsevier, vol. 137(C), pages 218-221.
    12. Mizala, Alejandra & Romaguera, Pilar & Gallegos, Sebastián, 2011. "Public–private wage gap in Latin America (1992–2007): A matching approach," Labour Economics, Elsevier, vol. 18(S1), pages 115-131.
    13. Jens Ruhose & Stephan L. Thomsen & Insa Weilage, 2018. "The Wider Benefits of Adult Learning: Work-Related Training and Social Capital," SOEPpapers on Multidisciplinary Panel Data Research 1004, DIW Berlin, The German Socio-Economic Panel (SOEP).
    14. Alejandra Mizala & Pilar Romaguera & Sebastian Gallegos, 2010. "Public-Private Wage Gap In Latin America (1999-2007): A Matching Approach," Documentos de Trabajo 268, Centro de Economía Aplicada, Universidad de Chile.
    15. Platt, Jonathan & Prins, Seth & Bates, Lisa & Keyes, Katherine, 2016. "Unequal depression for equal work? How the wage gap explains gendered disparities in mood disorders," Social Science & Medicine, Elsevier, vol. 149(C), pages 1-8.
    16. Marco Caliendo & Jens Hogenacker & Steffen Künn & Frank Wießner, 2015. "Subsidized start-ups out of unemployment: a comparison to regular business start-ups," Small Business Economics, Springer, vol. 45(1), pages 165-190, June.
    17. Andrea ALBANESE & Bart COCKX, 2015. "Permanent Wage Cost Subsidies for Older Workers. An Effective Tool for Increasing Working Time and Postponing Early Retirement?," LIDAM Discussion Papers IRES 2015006, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    18. Schultz, Birgit & Wilde, Joachim, 2008. "Vergleich der Weiterbildungsaktivitäten von Arbeitslosen und Vollzeiterwerbstätigen (Comparing the training activities of unemployed and full-time employed people)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 41-52.
    19. Tymon Słoczyński, 2020. "Average Gaps and Oaxaca–Blinder Decompositions: A Cautionary Tale about Regression Estimates of Racial Differences in Labor Market Outcomes," ILR Review, Cornell University, ILR School, vol. 73(3), pages 705-729, May.
    20. Kassie, Menale & Ndiritu, Simon Wagura & Shiferaw, Bekele A., 2012. "Determinants of Food Security in Kenya, a Gender Perspective," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 135124, Agricultural Economics Society.
    21. Dusan Paredes, 2012. "Does the gender wage gap exist among male and female workers with similar human capital? A Coarsened Exact Matching for Chile between 1992 and 2009," Documentos de Trabajo en Economia y Ciencia Regional 19, Universidad Catolica del Norte, Chile, Department of Economics, revised Apr 2012.
    22. Justin Leroux & John Rizzo & Robin Sickles, 2012. "The role of self-reporting bias in health, mental health and labor force participation: a descriptive analysis," Empirical Economics, Springer, vol. 43(2), pages 525-536, October.
    23. Schultz, Birgit & Wilde, Joachim, 2008. "Vergleich der Weiterbildungsaktivitäten von Arbeitslosen und Vollzeiterwerbstätigen (Comparing the training activities of unemployed and full-time employed people)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 41-52.
    24. Schultz, Birgit & Wilde, Joachim, 2008. "Vergleich der Weiterbildungsaktivitäten von Arbeitslosen und Vollzeiterwerbstätigen (Comparing the training activities of unemployed and full-time employed people)," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 41(1), pages 41-52.

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