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Rank Regressions, Wage Distributions, and the Gender Gap

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  • Nicole M. Fortin
  • Thomas Lemieux

Abstract

In this paper, we propose a novel rank-based procedure to decompose changes in the gender wage gap into three components: changes in the skill distribution, changes in the wage structure, and improvements in the position of women in a "distribution of reference." Using CPS data from 1979 and 1991, we perform the decomposition at each percentile of the wage distribution and show that the results are sensitive to the choice of distribution of reference (male versus overall wage distribution). We also find that relative wage gains of women may have been a source of increasing wage inequality among men.

Suggested Citation

  • Nicole M. Fortin & Thomas Lemieux, 1998. "Rank Regressions, Wage Distributions, and the Gender Gap," Journal of Human Resources, University of Wisconsin Press, vol. 33(3), pages 610-643.
  • Handle: RePEc:uwp:jhriss:v:33:y:1998:i:3:p:610-643
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    JEL classification:

    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J30 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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