IDEAS home Printed from
   My bibliography  Save this article

Wage differentials by gender in Venezuela (1997-1998): A two-step estimation approach


  • Geniled Pabón Valiente

    () (Economista)

  • Josefa Ramoni Perazzi

    () (Universidad de Los Andes. Departamento de Economía.)


This paper uses the information provided by the Household Sample Survey (1997-1998) to develop a model to explain the structure of wages by gender in Venezuela, taking into account variables such as sector of employment, age, education, among others, using the two-step method suggested by Heckman. Next, the study attempts to quantify, if any, the magnitude of the wage differential between the two groups and whether this is due to differences in the returns to human capital. Main results indicate a positive wage differential favoring women. This differential can be explained not only by the fact that women tend to have relatively higher levels of education, but also the returns to their human capital is higher, especially at the public sector level. Results also indicate that the probability of working or nor is significant in the estimation of the salary equation. It suggests a possible selection bias, corrected at least partly.

Suggested Citation

  • Geniled Pabón Valiente & Josefa Ramoni Perazzi, 2007. "Wage differentials by gender in Venezuela (1997-1998): A two-step estimation approach," Economía, Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela, vol. 32(23), pages 45-61, january-j.
  • Handle: RePEc:ula:econom:v:32:y:2007:i:23:p:45-61

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Francine D. Blau & Lawrence M. Kahn, 2000. "Gender Differences in Pay," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 75-99, Fall.
    2. Greene, William H, 1981. "Sample Selection Bias as a Specification Error: Comment," Econometrica, Econometric Society, vol. 49(3), pages 795-798, May.
    3. repec:pri:indrel:dsp016h440s473 is not listed on IDEAS
    4. Heckman, James J, 1990. "Varieties of Selection Bias," American Economic Review, American Economic Association, vol. 80(2), pages 313-318, May.
    5. Sharon P. Smith, 1974. "Government Wage Differentials by Region and Sex," Working Papers 438, Princeton University, Department of Economics, Industrial Relations Section..
    6. Hoffnar, Emily & Greene, Michael, 1996. "Gender discrimination in the public and private sectors: A sample selectivity approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 25(1), pages 105-114.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Wage differentials by gender in Venezuela; selection bias; Heckman´s two step method.;

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J8 - Labor and Demographic Economics - - Labor Standards
    • J82 - Labor and Demographic Economics - - Labor Standards - - - Labor Force Composition


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ula:econom:v:32:y:2007:i:23:p:45-61. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alexis Vásquez). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.