The Gender Earnings Gap: Measurement and Analysis
This paper presents a set of complementary tools for measurement and analysis of the gender gap that move beyond the simple moment-based comparison of the earnings distributions. In particular, we propose a new measure of the gender gap based on the the distance between two whole distributions, instead of their specific parts. We also introduce tests based on stochastic dominance to allow for robust welfare comparisons of the earnings distributions between men and women. Using the Current Population Survey data, we first construct a new series on the gender gap from 1976 to 2011 in the United States. We find that traditional moment-based measures severely underestimate the declining trend of the gender gap during this period. More important, these traditional measures do not necessarily reflect the cyclicality of the gender differentials in earnings distributions, and thus may even lead to a false conclusion about how labor market conditions are related to the gender gap at the aggregate level. Second, we find that stochastic dominance (or a clear ranking of the earnings distributions) is rare, and that instances in which we do find stochastic dominance appear to be disproportionately concentrated in the prewelfare reform period and related to economic recessions. Finally, our counterfactual analysis show that in most cases neither changing earnings structure nor changing human capital characteristics would necessarily improve women's well-being uniformly in the society.
|Date of creation:||Aug 2013|
|Contact details of provider:|| Web page: http://economics.emory.edu/home/journals/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maria Ana Lugo & Esfandiar Maasoumi, 2008. "Multidimensional Poverty Measures from an Information Theory Perspective," Working Papers 85, ECINEQ, Society for the Study of Economic Inequality.
- Michael Sattinger (ed.), 2001. "Income Distribution," Books, Edward Elgar Publishing, volume 0, number 2018, July.
- Sergio Firpo, 2007.
"Efficient Semiparametric Estimation of Quantile Treatment Effects,"
Econometric Society, vol. 75(1), pages 259-276, 01.
- Sergio Firpo, 2004. "Efficient Semiparametric Estimation of Quantile Treatment Effects," Econometric Society 2004 North American Summer Meetings 605, Econometric Society.
- Jeff Biddle & Daniel S. Hamermesh, 2011. "Cycles of Wage Discrimination," NBER Working Papers 17326, National Bureau of Economic Research, Inc.
- Biddle, Jeff E. & Hamermesh, Daniel S., 2011. "Cycles of Wage Discrimination," IZA Discussion Papers 5945, Institute for the Study of Labor (IZA).
- Esfandiar Maasoumi & Almas Heshmati, 2000. "Stochastic dominance amongst swedish income distributions," Econometric Reviews, Taylor & Francis Journals, vol. 19(3), pages 287-320.
- Heshmati, Almas & Maasoumi, Esfandiar, 1998. "Stochastic Dominance Amongst Swedish Income Distributions," SSE/EFI Working Paper Series in Economics and Finance 279, Stockholm School of Economics.
- repec:rim:rimwps:25-08 is not listed on IDEAS
- Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, Elsevier.
- Nicole Fortin & Thomas Lemieux & Sergio Firpo, 2010. "Decomposition Methods in Economics," NBER Working Papers 16045, National Bureau of Economic Research, Inc.
- repec:qeh:ophiwp:ophiwp011 is not listed on IDEAS
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680, April.
- Ximing Wu & Andreas Savvides & Thanasis Stengos, 2008. "The Global Joint Distribution of Income and Health," CESifo Working Paper Series 2367, CESifo Group Munich.
- Ximing Wu & Andreas Savvides & Thanasis Stengos, 2008. "The Global Joint Distribution of Income and Health," Working Papers 0807, University of Guelph, Department of Economics and Finance.
- Ximing Wu & Andreas Savvides & Thanasis Stengos, 2008. "The Global Joint Distribution of Income and Health," Working Paper Series 25_08, The Rimini Centre for Economic Analysis.
- Frölich, Markus, 2007. "Regression Discontinuity Design with Covariates," IZA Discussion Papers 3024, Institute for the Study of Labor (IZA).
- Markus Frölich, 2007. "Regression discontinuity design with covariates," CeMMAP working papers CWP27/07, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
- Markus Frölich, 2007. "Regression discontinuity design with covariates," University of St. Gallen Department of Economics working paper series 2007 2007-32, Department of Economics, University of St. Gallen.
- Maasoumi, Esfandiar & Racine, Jeff, 2002. "Entropy and predictability of stock market returns," Journal of Econometrics, Elsevier, vol. 107(1-2), pages 291-312, March.
- C. W. Granger & E. Maasoumi & J. Racine, 2004. "A Dependence Metric for Possibly Nonlinear Processes," Journal of Time Series Analysis, Wiley Blackwell, vol. 25(5), pages 649-669, 09.
- Racine, Jeffrey S., 2008. "Nonparametric Econometrics: A Primer," Foundations and Trends(R) in Econometrics, now publishers, vol. 3(1), pages 1-88, March.
- Millimet Daniel L & Wang Le, 2006. "A Distributional Analysis of the Gender Earnings Gap in Urban China," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 5(1), pages 1-50, February. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:emo:wp2003:1305. 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: (Sue Mialon)
If references are entirely missing, you can add them using this form.