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Explaining male wage inequality in the Philippines: non-parametric and semiparametric approaches

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  • Lawrence Dacuycuy

Abstract

The study examines the roles of experience and education in explaining the increase in wage inequality among Philippine male workers between 1988 and 1995. It also provides a methodological approach to the analysis of wage inequality by combining non-parametric methods with semiparametric additive models, using the variance accounting framework. Non-parametric density estimators allow flexibility in dealing with distributional inference while additive models yield marginal effects estimates under minimal assumptions on the functional specification of the wage-schooling and wage-experience relationships. The results show that much of the inequality increase from 1988 to 1995 was caused by greater variabilities in returns to schooling and experience among 1995 workers. The rise of the p90/p10 percentile ratio was caused by greater return variabilities on schooling and experience in the 90th percentile.

Suggested Citation

  • Lawrence Dacuycuy, 2006. "Explaining male wage inequality in the Philippines: non-parametric and semiparametric approaches," Applied Economics, Taylor & Francis Journals, vol. 38(21), pages 2497-2511.
  • Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2497-2511
    DOI: 10.1080/00036840500427767
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    References listed on IDEAS

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    Cited by:

    1. Edita E. Tan & Kristine S. Canales & Kevin G. Cruz & Jan Carlo B. Punongbayan, 2011. "Why are Boys Falling Behind Girls in Schooling?," UP School of Economics Discussion Papers 201112, University of the Philippines School of Economics.
    2. Anis Chowdhury & Iyanatul Islam, 2010. "Revisiting Shared Growth and Examining Horizontal Inequality," Chapters,in: The New Political Economy of Southeast Asia, chapter 4 Edward Elgar Publishing.
    3. Valenzuela, Maria Rebecca & Wong, Wing-Keung & Zhen, Zhu Zhen, 2017. "Income and Consumption Inequality in the Philippines: A Stochastic Dominance Analysis of Household Unit Records," ADBI Working Papers 662, Asian Development Bank Institute.

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