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The Impact of Selection into the Labor Force on the Gender Wage Gap

Author

Listed:
  • Francine D. Blau
  • Lawrence M. Kahn
  • Nikolai Boboshko
  • Matthew Comey

Abstract

Using Michigan Panel Study of Income Dynamics data, we study selection bias and the gender wage gap. Employing several methods, we find large declines in the total and unexplained gender gaps in wage offers between 1981 and 2015. Under our preferred selection correction method, the median total and unexplained gaps fell by 0.378 and 0.204 log points, respectively. These are larger declines than if we had not corrected for selection and simply measured convergence in observed wage gaps. However, substantial selectivity-corrected median gender wage gaps remain in 2015: 0.242 log points (total gap) and 0.206 log points (unexplained gap).

Suggested Citation

  • Francine D. Blau & Lawrence M. Kahn & Nikolai Boboshko & Matthew Comey, 2024. "The Impact of Selection into the Labor Force on the Gender Wage Gap," Journal of Labor Economics, University of Chicago Press, vol. 42(4), pages 1093-1133.
    • Handle: RePEc:ucp:jlabec:doi:10.1086/725032
    DOI: 10.1086/725032
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    Cited by:

    1. Lauren Bari, 2024. "Gendered Divergence in the Impact of Parenthood on Wages: The Role of Family Size, Human Capital and Working Time," Journal of Family and Economic Issues, Springer, vol. 45(3), pages 546-561, September.
    2. Jiang Li & Benoit Dostie & Gaëlle Simard-Duplain, 2023. "Firm Pay Policies and the Gender Earnings Gap: The Mediating Role of Marital and Family Status," ILR Review, Cornell University, ILR School, vol. 76(1), pages 160-188, January.
    3. Gozde Corekcioglu & Marco Francesconi & Astrid Kunze, 2025. "Parental Leave from the Firm’s Perspective," CESifo Working Paper Series 11868, CESifo.
    4. Iv'an Fern'andez-Val & Franco Peracchi & Aico van Vuuren & Francis Vella, 2018. "Selection and the Distribution of Female Hourly Wages in the U.S," Papers 1901.00419, arXiv.org, revised Jan 2022.
    5. Batbayar, Egshiglen & Breunig, Christoph & Haan, Peter & Ilieva, Boryana, 2026. "Quantile selection in the gender pay gap," Working Paper Series 3219, European Central Bank.
    6. Joseph G. Altonji & John Eric Humphries & Yagmur Yuksel & Ling Zhong, 2025. "Decomposing Trends in the Gender Gap for Highly Educated Workers," NBER Working Papers 34133, National Bureau of Economic Research, Inc.
    7. Ezgi Kaya, 2025. "Differences in labour market outcomes between immigrant and UK‐born employees: evidence from linked data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 127(4), pages 765-808, October.
    8. Deschacht, Nick & Guillemyn, Inés & Vujic, Suncica, 2025. "Exposing the Gap: Gender Inequality in Occupational Pension Coverage and Income Across Europe," IZA Discussion Papers 18163, IZA Network @ LISER.
    9. Egshiglen Batbayar & Christoph Breunig & Peter Haan & Boryana Ilieva, 2026. "Quantile Selection in the Gender Pay Gap," Rationality and Competition Discussion Paper Series 560, CRC TRR 190 Rationality and Competition.
    10. George J. Borjas & Anthony Edo, 2023. "Monopsony, Efficiency, and the Regularization of Undocumented Immigrants," NBER Working Papers 31457, National Bureau of Economic Research, Inc.
    11. Egshiglen Batbayar & Christoph Breunig & Peter Haan & Boryana Ilieva, 2025. "Quantile Selection in the Gender Pay Gap," Papers 2511.16187, arXiv.org, revised Jan 2026.
    12. Francine D. Blau & Isaac Cohen & Matthew L. Comey & Lawrence Kahn & Nikolai Boboshko, 2023. "The Minimum Wage and Inequality Between Groups," NBER Working Papers 31725, National Bureau of Economic Research, Inc.
    13. Borjas, George J. & Edo, Anthony, 2023. "Monopsony, Efficiency, and the Regularization of Undocumented Immigrants," IZA Discussion Papers 16297, IZA Network @ LISER.
    14. Egshiglen Batbayar & Christoph Breunig & Peter Haan & Boryana Ilieva, 2026. "Quantile selection in the gender pay gap," IFS Working Papers W26/04, Institute for Fiscal Studies.
    15. Richard Blundell & Hugo Lopez & James P. Ziliak, 2025. "Labor Market Inequality and the Changing Life Cycle Profile of Male and Female Wages," American Economic Journal: Applied Economics, American Economic Association, vol. 17(4), pages 100-133, October.
    16. Iv'an Fern'andez-Val & Aico van Vuuren & Francis Vella, 2023. "Marital Sorting, Household Inequality and Selection," Papers 2310.07839, arXiv.org.
    17. Ahrsjö, Ulrika & Niknami, Susan & Palme, Mårten, 2021. "Wage Inequality, Selection and the Evolution of the Gender Earnings Gap in Sweden," Research Papers in Economics 2021:3, Stockholm University, Department of Economics.
    18. Egshiglen Batbayar & Christoph Breunig & Peter Haan & Boryana Ilieva, 2026. "Quantile Selection in the Gender Pay Gap," Discussion Papers of DIW Berlin 2151, DIW Berlin, German Institute for Economic Research.
    19. Joyce Jacobsen & Melanie Khamis & Mutlu Yuksel, 2024. "Demography, Human Capital Investment, and Lifetime Earnings for Women and Men," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 50(3), pages 259-277, June.
    20. Iván Fernández‐Val & Aico van Vuuren & Francis Vella & Franco Peracchi, 2023. "Selection and the distribution of female real hourly wages in the United States," Quantitative Economics, Econometric Society, vol. 14(2), pages 571-607, May.
    21. Simonetta Longhi, 2025. "Success stories and continuing challenges: A longitudinal analysis of gender-ethnic wage gaps in the UK," RFBerlin Discussion Paper Series 2507, ROCKWOOL Foundation Berlin (RFBerlin).
    22. Ursula Berresheim, 2026. "Work from Home, Work for Less? How Workplace Flexibility Affects Mothers’ Careers," CRC TR 224 Discussion Paper Series crctr224_2025_733, University of Bonn and University of Mannheim, Germany.
    23. Amighini, Alessia & Fang, Weidi & Zagler, Martin, 2025. "On the evolution of the wage premium for party membership in China," World Development, Elsevier, vol. 188(C).
    24. Li, Lilian & Cheng, Mingwang & Chen, Chunyan, 2025. "Gender wage gap of migrant workers and its root causes: Gender discrimination or labor endowment?," Journal of Asian Economics, Elsevier, vol. 100(C).

    More about this item

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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