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

  • Lawrence Dacuycuy

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.

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Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 38 (2006)
Issue (Month): 21 ()
Pages: 2497-2511

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Handle: RePEc:taf:applec:v:38:y:2006:i:21:p:2497-2511
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  1. Stephen P. Jenkins, 1999. "INEQFAC: Stata module to calculate inequality decomposition by factor components," Statistical Software Components S366003, Boston College Department of Economics, revised 31 Mar 2009.
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  9. John Xu Zheng, 1996. "A consistent test of functional form via nonparametric estimation techniques," Journal of Econometrics, Elsevier, vol. 75(2), pages 263-289, December.
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  13. Willis, Robert J., 1987. "Wage determinants: A survey and reinterpretation of human capital earnings functions," Handbook of Labor Economics, in: O. Ashenfelter & R. Layard (ed.), Handbook of Labor Economics, edition 1, volume 1, chapter 10, pages 525-602 Elsevier.
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