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Decomposing the Gender Wage Gap with Sample Selection Adjustment: Evidence from Colombia

Author

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  • Alejandro Badel

    (Federal Reserve Bank of St. Louis)

  • Ximena Peña

    (Universidad de Los Andes)

Abstract

Despite the remarkable improvement of female labor market characteristics, a sizeable gender wage gap exists in Colombia. We employ quantile regression techniques to examine the degree to which current small differences in the distribution of observable characteristics can explain the gender gap. We find that the gap is largely explained by gender differences in the rewards to labor market characteristics and not by differences in the distribution of characteristics. We claim that Colombian women experience both a "glass ceiling effect" and also (what we call) a "quicksand floor effect" because gender differences in returns to characteristics primarily affect women at the top and the bottom of the distribution. Also, self selection into the labor force is crucial for gender gaps: if all women participated in the labor force, the observed gap would be roughly 50% larger at all quantiles.

Suggested Citation

  • Alejandro Badel & Ximena Peña, 2010. "Decomposing the Gender Wage Gap with Sample Selection Adjustment: Evidence from Colombia," Revista de Analisis Economico – Economic Analysis Review, Universidad Alberto Hurtado/School of Economics and Business, vol. 25(2), pages 169-191, Diciembre.
    • Handle: RePEc:ila:anaeco:v:25:y:2010:i:2:p:169-191
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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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