Gender-wage gap distribution with endogenous human capital: the Spanish case
In: Investigaciones de Economía de la Educación 6
This paper aims to verify the existence of gender-based wage discrimination in Spain and, if so, to quantify it. Using data from the Spanish section of the European Community Household Panel, we first estimate earnings equations for men and women using the instrumental variable method proposed by Hausman and Taylor (1981). This aims to avoid biases resulting from endogeneity of regressors with respect to the random perturbation in the model. Building on these results, we then follow the proposal of Jenkins (1994) and estimate a bivariate wage distribution for women, containing individual expected earnings when discrimination exists (applying the female wage structure) and when it doesn’t (applying the male wage structure). This allows for a full distributional analysis of gender-wage gaps. Our results show that discrimination is distributed unevenly across female workers and that the degree to which women are discriminated against grows as they move upward in the wage distribution.
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- Sara de la Rica & Arantza Ugidos, 1995. "¿Son las diferencias en capital humano determinantes en las diferencias salariales observadas entre hombres y mujeres?," Investigaciones Economicas, Fundación SEPI, vol. 19(3), pages 395-414, September.
- Sara Rica & Juan Dolado & Vanesa Llorens, 2008. "Ceilings or floors? Gender wage gaps by education in Spain," Journal of Population Economics, Springer, vol. 21(3), pages 751-776, July.
- Jenkins, Stephen P., 1994. "Earnings discrimination measurement : A distributional approach," Journal of Econometrics, Elsevier, vol. 61(1), pages 81-102, March.
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