Bootstrapping the European Gender Wage Gap
This paper investigates the gender wage gap in Denmark, the Netherlands, France and Spain by boostrapping the Oaxaca-Blinder decomposition. The boostrap method is used to compute confidence intervals and to perform hypothesis tests for the (disaggregated) explained and unexplained components of the national earnings differentials between men and women. From the subset of paid employees selected from the European Community Household Panel (ECHP) it is revealed that the respective national gender wage gaps are significant at the 5% level. The empirical boostrap distribution of the male-female earnings differential reveals that the average differentials of the four selected countries lie very close together, whereas the boostrap standard deviations of the gaps do not agree.
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- Cotton, Jeremiah, 1988. "On the Decomposition of Wage Differentials," The Review of Economics and Statistics, MIT Press, vol. 70(2), pages 236-43, May.
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- Mills, Jeffrey A & Zandvakili, Sourushe, 1997.
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Journal of Applied Econometrics,
John Wiley & Sons, Ltd., vol. 12(2), pages 133-50, March-Apr.
- Jeffrey A. Mills & Sourushe Zandvakili, 1999. "Statistical Inference via Bootstrapping for Measures of Inequality," Macroeconomics 9902003, EconWPA.
- Blau, Francine D & Kahn, Lawrence M, 1992. "The Gender Earnings Gap: Learning from International Comparisons," American Economic Review, American Economic Association, vol. 82(2), pages 533-38, May.
- Dekkers, G.J.M. & Nelissen, J.H.M., 2001. "The Components of Income Inequality in Belgium : Applying the Shorrocks-Decomposition with Bootstrapping," Discussion Paper 2001-66, Tilburg University, Center for Economic Research.
- Franco Peracchi, 2002. "The European Community Household Panel: A review," Empirical Economics, Springer, vol. 27(1), pages 63-90.
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