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The measurement of gender wage discrimination: The distributional approach revisited

  • Coral del Río


    (Universidade de Vigo (Spain))

  • Carlos Gradín

    (Universidade de Vigo (Spain))

  • Olga Cantó


    (Universidade de Vigo (Spain))

This paper presents the advantages of taking into account the distribution of the individual wage gap when analyzing female wage discrimination. The limitations of previous approaches such as the classic Oaxaca-Blinder and the recent distributive proposals using quantile regressions or counterfactual functions are thoroughly discussed. The new methodology presented here relies on Jenkins' (1994) work and proposes the use of poverty and deprivation literature techniques that are directly applicable to the measurement of discrimination. In an empirical application, we quantify the relevance of the glass ceiling and sticky floor phenomena in the Spanish labor market.

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Paper provided by ECINEQ, Society for the Study of Economic Inequality in its series Working Papers with number 25.

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Length: 39 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:inq:inqwps:ecineq2006-25
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  1. Christopher J. Gerry & Byung-Yeon Kim & Carmen A Li, 2004. "The gender wage gap and wage arrears in Russia: Evidence from the RLMS," Journal of Population Economics, Springer, vol. 17(2), pages 267-288, 06.
  2. John DiNardo & Nicole M. Fortin & Thomas Lemieux, 1995. "Labor Market Institutions and the Distribution of Wages, 1973-1992: A Semiparametric Approach," NBER Working Papers 5093, National Bureau of Economic Research, Inc.
  3. Kevin Denny & Colm Harmon & Maurice Roche, 1997. "The distribution of discrimination in immigrant earnings - evidence from Britain 1974-1993," IFS Working Papers W97/19, Institute for Fiscal Studies.
  4. Ronald Oaxaca, 1971. "Male-Female Wage Differentials in Urban Labor Markets," Working Papers 396, Princeton University, Department of Economics, Industrial Relations Section..
  5. Barry Reilly, 1999. "The gender pay gap in Russia during the transition, 1992-96," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 7(1), pages 245-264, March.
  6. José A. F. Machado & José Mata, 2001. "Earning functions in Portugal 1982-1994: Evidence from quantile regressions," Empirical Economics, Springer, vol. 26(1), pages 115-134.
  7. Fortin, N.M. & Lemieux, T., 1996. "Rank Regressions, Wage Distributions and the Gender Gap," Cahiers de recherche 9607, Universite de Montreal, Departement de sciences economiques.
  8. Jörgen Hansen & Roger Wahlberg, 2005. "Endogenous schooling and the distribution of the gender wage gap," Empirical Economics, Springer, vol. 30(1), pages 1-22, January.
  9. Dorothe Bonjour & Michael Gerfin, 2001. "The unequal distribution of unequal pay - An empirical analysis of the gender wage gap in Switzerland," Empirical Economics, Springer, vol. 26(2), pages 407-427.
  10. 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.
  11. Arulampalam, Wiji & Booth, Alison L. & Bryan, Mark L., 2005. "Is there a glass ceiling over Europe? Exploring the gender pay gap across the wages distribution," ISER Working Paper Series 2005-25, Institute for Social and Economic Research.
  12. Newell, Andrew & Reilly, Barry, 2001. "The gender pay gap in the transition from communism: some empirical evidence," Economic Systems, Elsevier, vol. 25(4), pages 287-304, December.
  13. Javier Gardeazabal & Arantza Ugidos, 2005. "Gender wage discrimination at quantiles," Journal of Population Economics, Springer, vol. 18(1), pages 165-179, 07.
  14. Albrecht, James & van Vuuren, Aico & Vroman, Susan, 2004. "Decomposing the Gender Wage Gap in the Netherlands with Sample Selection Adjustments," IZA Discussion Papers 1400, Institute for the Study of Labor (IZA).
  15. Blau, Francine D & Kahn, Lawrence M, 1996. "Wage Structure and Gender Earnings Differentials: An International Comparison," Economica, London School of Economics and Political Science, vol. 63(250), pages S29-62, Suppl..
  16. Jenkins, Stephen P., 1994. "Earnings discrimination measurement : A distributional approach," Journal of Econometrics, Elsevier, vol. 61(1), pages 81-102, March.
  17. Jenkins, Stephen P & Lambert, Peter J, 1997. "Three 'I's of Poverty Curves, with an Analysis of UK Poverty Trends," Oxford Economic Papers, Oxford University Press, vol. 49(3), pages 317-27, July.
  18. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May.
  19. James Albrecht & Anders Bjorklund & Susan Vroman, 2003. "Is There a Glass Ceiling in Sweden?," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 145-177, January.
  20. Zheng, Buhong, 1997. " Aggregate Poverty Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 11(2), pages 123-62, June.
  21. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
  22. Francine D. Blau & Lawrence M. Kahn, 2001. "Understanding International Differences in the Gender Pay Gap," NBER Working Papers 8200, National Bureau of Economic Research, Inc.
  23. Booth, Alison L. & Francesconi, Marco & Frank, Jeff, 2003. "A sticky floors model of promotion, pay, and gender," European Economic Review, Elsevier, vol. 47(2), pages 295-322, April.
  24. De la Rica Goiricelaya, Sara & Dolado, Juan J. & Llorens, Vanessa, 2005. "Ceilings and Floors? Gender Wage Gaps by Education in Spain," DFAEII Working Papers 2005-01, University of the Basque Country - Department of Foundations of Economic Analysis II.
  25. repec:oup:restud:v:67:y:2000:i:4:p:609-33 is not listed on IDEAS
  26. Björn Gustafsson & Shi Li, 2000. "Economic transformation and the gender earnings gap in urban China," Journal of Population Economics, Springer, vol. 13(2), pages 305-329.
  27. Zheng, Buhong, 2000. " Poverty Orderings," Journal of Economic Surveys, Wiley Blackwell, vol. 14(4), pages 427-66, September.
  28. Blau, Francine D & Kahn, Lawrence M, 1997. "Swimming Upstream: Trends in the Gender Wage Differential in 1980s," Journal of Labor Economics, University of Chicago Press, vol. 15(1), pages 1-42, January.
  29. Buchinsky, Moshe, 1994. "Changes in the U.S. Wage Structure 1963-1987: Application of Quantile Regression," Econometrica, Econometric Society, vol. 62(2), pages 405-58, March.
  30. Juhn, Chinhui & Murphy, Kevin M & Pierce, Brooks, 1993. "Wage Inequality and the Rise in Returns to Skill," Journal of Political Economy, University of Chicago Press, vol. 101(3), pages 410-42, June.
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  32. Kunze, Astrid, 2000. "The Determination of Wages and the Gender Wage Gap: A Survey," IZA Discussion Papers 193, Institute for the Study of Labor (IZA).
  33. Kevin J Denny; & Colm P Harmon: & Maurice Roche, 1997. "The Distribution of Discrimination in Immigrant Earnings- Evidence from Britain 1974-93," Economics, Finance and Accounting Department Working Paper Series n690897, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
  34. Carlos Gradin & Coral del Rio & Olga Canto, 2010. "Gender Wage Discrimination and Poverty in the EU," Feminist Economics, Taylor & Francis Journals, vol. 16(2), pages 73-109.
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