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Endogenous schooling and the distribution of the gender wage gap

Author

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  • Jörgen Hansen

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  • Roger Wahlberg

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Abstract

Previous studies on the gender wage gap have relied on OLS when estimating the wage equations. However, a number of recent studies, devoted to estimating the return to education, have shown that OLS may produce biased estimates for a number of reasons. As a consequence, previous results regarding the gender wage gap may also be biased. In this paper, we first estimate wage equations using a GMM procedure applied to panel data and then investigate the distribution of the gender wage gap. The results indicate that OLS may seriously overestimate the unexplained gender wage gap. Copyright Springer-Verlag 2005

Suggested Citation

  • Jörgen Hansen & Roger Wahlberg, 2005. "Endogenous schooling and the distribution of the gender wage gap," Empirical Economics, Springer, vol. 30(1), pages 1-22, January.
  • Handle: RePEc:spr:empeco:v:30:y:2005:i:1:p:1-22
    DOI: 10.1007/s00181-004-0218-4
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    File URL: http://hdl.handle.net/10.1007/s00181-004-0218-4
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    Citations

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    Cited by:

    1. Juan Pablo Atal & Hugo Nopo & Natalia Winder, 2009. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," Research Department Publications 4640, Inter-American Development Bank, Research Department.
    2. Hugo Ñopo, 2008. "Matching as a Tool to Decompose Wage Gaps," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 290-299, May.
    3. Coral Río & Carlos Gradín & Olga Cantó, 2011. "The measurement of gender wage discrimination: the distributional approach revisited," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(1), pages 57-86, March.
    4. Luis Gamboa & Blanca Zuluaga, 2013. "Is There a Motherhood Penalty? Decomposing the Family Wage Gap in Colombia," Journal of Family and Economic Issues, Springer, vol. 34(4), pages 421-434, December.
    5. Coral del Río Otero & Carlos Gradín Lago & Olga Cantó Sánchez, 2004. "El enfoque distributivo en el análisis de la discriminación salarial por razón de género," Working Papers 0405, Universidade de Vigo, Departamento de Economía Aplicada.
    6. Lucía Navarro-Gómez & Mario F. Rueda-Narvaez, 2015. "Distribution of the gender wage gap with endogenous human capital: evidence for Spain," Evidence-based HRM: A Global Forum for Empirical Scholarship, Emerald Group Publishing, vol. 3(1), pages 25-45, April.
    7. repec:bla:revinw:v:63:y:2017:i:4:p:821-840 is not listed on IDEAS
    8. KUEPIE Mathias & DZOSSA Anaclet Désiré & KELODJOUE Samuel, 2013. "Determinants of labor market gender inequalities in Cameroon, Senegal and Mali: the role of human capital and the fertility burden," LISER Working Paper Series 2013-08, LISER.

    More about this item

    Keywords

    Return to education; endogenous schooling; panel data; unobserved heterogeneity; distribution of wage gap; J3; J7;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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