IDEAS home Printed from https://ideas.repec.org/p/boc/fsug22/06.html
   My bibliography  Save this paper

The multiple dimensions of selection into employment

Author

Listed:
  • Kenza Elass

    (Aix-Marseille Université, AMSE)

Abstract

A vast literature on gender wage gaps has examined the importance of selection into employment. However, most analyses have focused only on female labor-force participation and gaps at the median. The Great Recession questions this approach, not only because of the major shift in male employment that it implied but also because women’s decision to participate seems to have been different along the distribution, particularly because of an “added worker effect”. This presentation uses the methodology proposed by Arellano and Bonhomme (2017) to estimate a quantile selection model over the period 2007–2018. Using a tax and benefit microsimulation model, I compute an instrument capturing the male selection induced by the crisis as well as female decisions: the potential out-of-work income. Because my instrument is crucially determined by the welfare state, I consider three countries with notably different benefit systems—the U.K., France, and Finland. My results imply different selection patterns across countries and a sizeable male selection in France and the U.K. Correction for selection bias lowers the gender wage gap and, in recent years, reveals an increasing shape of the gender gap distribution with a substantial glass ceiling for the three countries.

Suggested Citation

  • Kenza Elass, 2022. "The multiple dimensions of selection into employment," French Stata Users' Group Meetings 2022 06, Stata Users Group.
  • Handle: RePEc:boc:fsug22:06
    as

    Download full text from publisher

    File URL: http://repec.org/frsug2022/France22_Elass.pdf
    File Function: presentation materials
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Picchio, Matteo & Mussida, Chiara, 2011. "Gender wage gap: A semi-parametric approach with sample selection correction," Labour Economics, Elsevier, vol. 18(5), pages 564-578, October.
    2. Richard Blundell & Howard Reed & Thomas M. Stoker, 2003. "Interpreting Aggregate Wage Growth: The Role of Labor Market Participation," American Economic Review, American Economic Association, vol. 93(4), pages 1114-1131, September.
    3. Wiji Arulampalam & Alison L. Booth & Mark L. Bryan, 2007. "Is There a Glass Ceiling over Europe? Exploring the Gender Pay Gap across the Wage Distribution," ILR Review, Cornell University, ILR School, vol. 60(2), pages 163-186, January.
    4. Henrik Kleven & Camille Landais & Johanna Posch & Andreas Steinhauer & Josef Zweimüller, 2019. "Child Penalties across Countries: Evidence and Explanations," AEA Papers and Proceedings, American Economic Association, vol. 109, pages 122-126, May.
    5. Martin Huber & Giovanni Mellace, 2014. "Testing exclusion restrictions and additive separability in sample selection models," Empirical Economics, Springer, vol. 47(1), pages 75-92, August.
    6. Biewen, Martin & Fitzenberger, Bernd & Seckler, Matthias, 2020. "Counterfactual quantile decompositions with selection correction taking into account Huber/Melly (2015): An application to the German gender wage gap," Labour Economics, Elsevier, vol. 67(C).
    7. Michaël Sicsic, 2022. "Does labour income react more to income tax or means‐tested benefits reforms?," Fiscal Studies, John Wiley & Sons, vol. 43(3), pages 291-319, September.
    8. Albrecht, James & van Vuuren, Aico & Vroman, Susan, 2009. "Counterfactual distributions with sample selection adjustments: Econometric theory and an application to the Netherlands," Labour Economics, Elsevier, vol. 16(4), pages 383-396, August.
    9. Gurgand, Marc & Margolis, David N., 2008. "Does work pay in France? Monetary incentives, hours constraints, and the guaranteed minimum income," Journal of Public Economics, Elsevier, vol. 92(7), pages 1669-1697, July.
    10. Claudia Olivetti & Barbara Petrongolo, 2008. "Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 621-654, October.
    11. Juan J Dolado & Cecilia García-Peñalosa & Linas Tarasonis, 2020. "The changing nature of gender selection into employment over the great recession," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 35(104), pages 635-677.
    12. Andrea Ichino & Martin Olsson & Barbara Petrongolo & Peter Skogman Thoursie, 2019. "Economic incentives, home production and gender identity norms," CEP Discussion Papers dp1626, Centre for Economic Performance, LSE.
    13. Francine D. Blau & Lawrence M. Kahn, 2003. "Understanding International Differences in the Gender Pay Gap," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 106-144, January.
    14. Edoardo Ciscato & Alfred Galichon & Marion Goussé, 2020. "Like Attract Like? A Structural Comparison of Homogamy across Same-Sex and Different-Sex Households," Journal of Political Economy, University of Chicago Press, vol. 128(2), pages 740-781.
    15. Alberto Alesina & Andrea Ichino & Loukas Karabarbounis, 2011. "Gender-Based Taxation and the Division of Family Chores," American Economic Journal: Economic Policy, American Economic Association, vol. 3(2), pages 1-40, May.
    16. Lundberg, Shelly, 1985. "The Added Worker Effect," Journal of Labor Economics, University of Chicago Press, vol. 3(1), pages 11-37, January.
    17. Heckman, James J, 1974. "Shadow Prices, Market Wages, and Labor Supply," Econometrica, Econometric Society, vol. 42(4), pages 679-694, July.
    18. Lundberg, Shelly & Rose, Elaina, 2000. "Parenthood and the earnings of married men and women," Labour Economics, Elsevier, vol. 7(6), pages 689-710, November.
    19. Martin Biewen & Pascal Erhardt, 2021. "arhomme: An implementation of the Arellano and Bonhomme (2017) estimator for quantile regression with selection correction," Stata Journal, StataCorp LP, vol. 21(3), pages 602-625, September.
    20. Manuel Arellano & Stéphane Bonhomme, 2017. "Quantile Selection Models With an Application to Understanding Changes in Wage Inequality," Econometrica, Econometric Society, vol. 85, pages 1-28, January.
    21. Engel, Melissa & Schaffner, Sandra, 2012. "How to Use the EU-SILC Panel to Analyse Monthly and Hourly Wages," Ruhr Economic Papers 390, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    22. Moshe Buchinsky, 1998. "The dynamics of changes in the female wage distribution in the USA: a quantile regression approach," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(1), pages 1-30.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Daniele Checchi & Cecilia Garcia-Peñalosa & Lara Vivian, 2022. "Hours Inequality," Working Papers hal-03872764, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Elass, Kenza, 2024. "Male and female selection effects on gender wage gaps in three countries," Labour Economics, Elsevier, vol. 87(C).
    2. Kenza Elass, 2022. "The multiple dimensions of selection into employment," AMSE Working Papers 2219, Aix-Marseille School of Economics, France.
    3. Kenza Elass, 2022. "The multiple dimensions of selection into employment," Working Papers hal-03788508, HAL.
    4. Garbay, Sergio & Barrera, Raquel, 2021. "¿Mujeres en suelos pegajosos? Un análisis de la evolución de las distribuciones de ingresos laborales en Bolivia en el periodo 2011-2019," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 36, pages 123-168, Noviembre.
    5. Picchio, Matteo & Mussida, Chiara, 2011. "Gender wage gap: A semi-parametric approach with sample selection correction," Labour Economics, Elsevier, vol. 18(5), pages 564-578, October.
    6. Gallego Granados, Patricia & Wrohlich, Katharina, 2019. "Selection into Employment and the Gender Wage Gap across the Distribution and over Time," IZA Discussion Papers 12859, Institute of Labor Economics (IZA).
    7. Biewen, Martin & Fitzenberger, Bernd & Seckler, Matthias, 2020. "Counterfactual quantile decompositions with selection correction taking into account Huber/Melly (2015): An application to the German gender wage gap," Labour Economics, Elsevier, vol. 67(C).
    8. Manuel Arellano & Stéphane Bonhomme, 2017. "Quantile Selection Models With an Application to Understanding Changes in Wage Inequality," Econometrica, Econometric Society, vol. 85, pages 1-28, January.
    9. Claudia Olivetti & Barbara Petrongolo, 2008. "Unequal Pay or Unequal Employment? A Cross-Country Analysis of Gender Gaps," Journal of Labor Economics, University of Chicago Press, vol. 26(4), pages 621-654, October.
    10. Marina Bonaccolto-Töpfer & Carolina Castagnetti & Luisa Rosti, 2023. "Changes in the gender pay gap over time: the case of West Germany," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 57(1), pages 1-17, December.
    11. Christofides, Louis N. & Polycarpou, Alexandros & Vrachimis, Konstantinos, 2013. "Gender wage gaps, ‘sticky floors’ and ‘glass ceilings’ in Europe," Labour Economics, Elsevier, vol. 21(C), pages 86-102.
    12. Bernd Fitzenberger & Jakob Lazzer, 2022. "Changing selection into full-time work and its effect on wage inequality in Germany," Empirical Economics, Springer, vol. 62(1), pages 247-277, January.
    13. Maasoumi, Esfandiar & Wang, Le, 2017. "What can we learn about the racial gap in the presence of sample selection?," Journal of Econometrics, Elsevier, vol. 199(2), pages 117-130.
    14. Joanna Tyrowicz & Lucas van der Velde, 2017. "When the opportunity knocks: large structural shocks and gender wage gaps," GRAPE Working Papers 2, GRAPE Group for Research in Applied Economics.
    15. Albanesi, Stefania & Olivetti, Claudia & Petrongolo, Barbara, 2022. "Families, labor markets and policy," LSE Research Online Documents on Economics 118038, London School of Economics and Political Science, LSE Library.
    16. Chzhen, Yekaterina & Mumford, Karen, 2011. "Gender gaps across the earnings distribution for full-time employees in Britain: Allowing for sample selection," Labour Economics, Elsevier, vol. 18(6), pages 837-844.
    17. Arceo-Gómez, Eva O. & Campos-Vázquez, Raymundo M., 2014. "Evolución de la brecha salarial de género en México," El Trimestre Económico, Fondo de Cultura Económica, vol. 0(323), pages .619-653, julio-sep.
    18. Borjas, George J. & Edo, Anthony, 2021. "Gender, Selection into Employment, and the Wage Impact of Immigration," IZA Discussion Papers 14261, Institute of Labor Economics (IZA).
    19. Marjan Petreski & Nikica Blazevski & Blagica Petreski, 2014. "Gender Wage Gap when Women are Highly Inactive: Evidence from Repeated Imputations with Macedonian Data," Journal of Labor Research, Springer, vol. 35(4), pages 393-411, December.
    20. Bargain, Olivier B. & Doorley, Karina & Van Kerm, Philippe, 2018. "Minimum Wages and the Gender Gap in Pay: New Evidence from the UK and Ireland," IZA Discussion Papers 11502, Institute of Labor Economics (IZA).

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    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:boc:fsug22:06. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F Baum (email available below). General contact details of provider: https://edirc.repec.org/data/stataea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.