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Gender wage gap studies: consistency and decomposition

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  • Astrid Kunze

Abstract

This paper reviews the empirical literature on the gender wage gap, with particular attention given to the identification of the key parameters in human capital wage regression models. This is of great importance in the literature for two main reasons. First, the main explanatory variables in the wage model, i.e., measures of work experience and time-out-of-work, are endogenous. As a result, applying traditional estimators may lead to inconsistent parameter estimates. Second, empirical evidence on the gender wage gap hinges on estimates of the parameters of interest. Accordingly, their economic meaning may be limited by restrictive assumptions included in wage models. This challenges both researchers and policymakers who require precise measures of the gender wage gap in order to create and enforce efficient equality policies. Copyright Springer-Verlag 2008

Suggested Citation

  • Astrid Kunze, 2008. "Gender wage gap studies: consistency and decomposition," Empirical Economics, Springer, vol. 35(1), pages 63-76, August.
  • Handle: RePEc:spr:empeco:v:35:y:2008:i:1:p:63-76
    DOI: 10.1007/s00181-007-0143-4
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    More about this item

    Keywords

    Male–female wage differentials; Human capital wage regression model; Model construction and estimation; Wage discrimination; J16; J3; J71;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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