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The Gender Wage Gap and Sample Selection via Risk Attitudes

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  • Seeun Jung

    (PSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

This paper investigates a new way to estimate the gender wage gap with the introduction of individual risk attitudes using representative Korean data. We estimate the wage gap with correction for the selection bias, which latter results in the overestimation of this wage gap. Female workers are more risk averse. They hence prefer working in the public sector, where wages are generally lower than in the private sector. It goes on to explain the reduced gender wage gap by developing an appropriate sample-selection model, with wage decompositions corrected for selectivity. Self-selection based on risk attitudes therefore explains, in part, what is popularly perceived as gender discrimination.

Suggested Citation

  • Seeun Jung, 2014. "The Gender Wage Gap and Sample Selection via Risk Attitudes," PSE Working Papers halshs-00965520, HAL.
  • Handle: RePEc:hal:psewpa:halshs-00965520
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00965520v2
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    Cited by:

    1. Paul Redmond & Seamus Mcguinness, 2019. "The Gender Wage Gap in Europe: Job Preferences, Gender Convergence and Distributional Effects," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 81(3), pages 564-587, June.
    2. Edin, Per-Anders & Selin, Håkan, 2020. "Financial risk-taking and the gender wage gap," Working Paper Series 2020:16, IFAU - Institute for Evaluation of Labour Market and Education Policy.
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    4. Jung, SeEun & Choe, Chung & Oaxaca, Ronald L., 2018. "Gender wage gaps and risky vs. secure employment: An experimental analysis," Labour Economics, Elsevier, vol. 52(C), pages 112-121.
    5. Isabelle Bensidoun & Danièle Trancart, 2015. "The Gender Wage Gap in France: the Role of Non-Cognitive Characteristics," Working Papers DT/2015/08, DIAL (Développement, Institutions et Mondialisation).

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    More about this item

    Keywords

    Occupational Choice; Gender Wage Gap; Risk Preference; Selection Bias;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection

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