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Generalized measures of wage differentials

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  • Van Kerm, Philippe

Abstract

This paper considers new ‘distributionally sensitive’ summary measures of wage differentials, not solely determined by “the average wage of the average person” but by differences across complete wage distributions. Considerations of risk or inequality aversion in the assessment of wage differentials are explicitly included, transplanting expected utility concepts familiar to income distribution analysts. In an application to the gender pay gap in Luxembourg the disadvantage of women persists with the new generalized measures of wage differentials. This suggests that lower average wages for women are not compensated by less dispersed distributions. The paper also illustrates original estimation of wage distributions in the presence of covariates and under endogenous labour market participation.

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  • Van Kerm, Philippe, 2009. "Generalized measures of wage differentials," ISER Working Paper Series 2009-26, Institute for Social and Economic Research.
    • Handle: RePEc:ese:iserwp:2009-26
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    6. Manuel Arellano & Stéphane Bonhomme, 2017. "Sample Selection in Quantile Regression: A Survey," Working Papers wp2018_1702, CEMFI.
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    8. Ekaterina Selezneva & Philippe Van Kerm, 2013. "Inequality-Adjusted Gender Wage Differentials in Germany," SOEPpapers on Multidisciplinary Panel Data Research 579, DIW Berlin, The German Socio-Economic Panel (SOEP).
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    13. Ekaterina Selezneva & Philippe Van Kerm, 2016. "A distribution-sensitive examination of the gender wage gap in Germany," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 14(1), pages 21-40, March.
    14. 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.
    15. Monojit Chatterji & Sushil Mohan & Sayantan Ghosh Dastidar, 2015. "Determinants of public education expenditure: evidence from Indian states," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 6(1), pages 1-19.
    16. Jing Dai & Stefan Sperlich & Walter Zucchini, 2016. "A Simple Method for Predicting Distributions by Means of Covariates with Examples from Poverty and Health Economics," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 152(I), pages 49-80, March.
    17. Bargain, Olivier & 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).
    18. VAN KERM Philippe & YU Seunghee & CHOE Chung, 2014. "Wage differentials between native, immigrant and cross-border workers: Evidence and model comparisons," LISER Working Paper Series 2014-05, Luxembourg Institute of Socio-Economic Research (LISER).
    19. Allanson, Paul, 2014. "Income stratification and the measurement of interdistributional inequality between multiple groups," 2007 Annual Meeting, July 29-August 1, 2007, Portland, Oregon TN 2015-34, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    20. Denisa M. Sologon & Cathal O’Donoghue & Iryna Kyzyma & Jinjing Li & Jules Linden & Raymond Wagener, 2022. "The COVID-19 resilience of a continental welfare regime - nowcasting the distributional impact of the crisis," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 20(4), pages 777-809, December.
    21. Nerijus Cerniauskas & Denisa M. Sologon & Cathal O’Donoghue & Linas Tarasonis, 2020. "Changes in income inequality in Lithuania: the role of policy, labour market structure, returns and demographics," Bank of Lithuania Working Paper Series 71, Bank of Lithuania.
    22. Alexander Sohn, 2015. "Beyond Conventional Wage Discrimination Analysis: Assessing Comprehensive Wage Distributions of Males and Females Using Structured Additive Distributional Regression," SOEPpapers on Multidisciplinary Panel Data Research 802, DIW Berlin, The German Socio-Economic Panel (SOEP).

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    More about this item

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J70 - Labor and Demographic Economics - - Labor Discrimination - - - General

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