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A nonparametric decomposition of the Mexican American average wage gap

  • Ricardo Mora

    (Universidad Carlos III de Madrid, Madrid, Spain)

This paper shows that average wage gap decompositions between any two groups of workers can be carried out using nonparametric wage structures. It also proposes an algorithm to correct for sample selection in nonparametric models known as tree structures. This paper studies the wage gap between third-generation Mexican American and non-Hispanic white workers in the southwest. It is shown that the decomposition heavily depends on functional assumptions, and that different aproaches to flexibility may render sufficiently good and similar results Copyright © 2008 John Wiley & Sons, Ltd.

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Article provided by John Wiley & Sons, Ltd. in its journal Journal of Applied Econometrics.

Volume (Year): 23 (2008)
Issue (Month): 4 ()
Pages: 463-485

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Handle: RePEc:jae:japmet:v:23:y:2008:i:4:p:463-485
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  1. Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-84, Oct.-Dec..
  2. David Neumark & Sanders Korenman, 1992. "Sources of Bias in Women's Wage Equations: Results Using Sibling Data," NBER Working Papers 4019, National Bureau of Economic Research, Inc.
  3. Dustmann, C. & van Soest, A.H.O., 1998. "Language Fluency and Earnings : Estimation with Misclassified Language Indicators," Discussion Paper 1998-120, Tilburg University, Center for Economic Research.
  4. Trejo, Stephen J, 1997. "Why Do Mexican Americans Earn Low Wages?," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1235-68, December.
  5. Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
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  8. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January.
  9. Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  10. David Neumark, 1988. "Employers' Discriminatory Behavior and the Estimation of Wage Discrimination," Journal of Human Resources, University of Wisconsin Press, vol. 23(3), pages 279-295.
  11. Reimers, Cordelia W, 1983. "Labor Market Discrimination against Hispanic and Black Men," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 570-79, November.
  12. Shoshana Neuman & Ronald Oaxaca, 2004. "Wage Decompositions with Selectivity-Corrected Wage Equations: A Methodological Note," Journal of Economic Inequality, Springer, vol. 2(1), pages 3-10, April.
  13. Bergmann, Barbara R, 1971. "The Effect on White Incomes of Discrimination in Employment," Journal of Political Economy, University of Chicago Press, vol. 79(2), pages 294-313, March-Apr.
  14. Alan S. Blinder, 1973. "Wage Discrimination: Reduced Form and Structural Estimates," Journal of Human Resources, University of Wisconsin Press, vol. 8(4), pages 436-455.
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  16. Cotterman, R & Peracchi, F, 1992. "Classification and Aggregation: An Application to Industrial Classification in CPS Data," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 7(1), pages 31-51, Jan.-Marc.
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