Revisiting Inter-Industry Wage Differentials and the Gender Wage Gap: An Identification Problem
We propose a measure of the industrial gender wage gap which is free from an identification problem by using inter-industry wage differentials, or industrial wage premia. We draw on a recent literature showing that a normalized regression equation can be used to resolve the identification problem in detailed Oaxaca decompositions of wage differentials. By identifying the constant and the coefficients of dummy variables, including the reference category, the normalized equation can resolve the two key identification problems that arise in studying wage gaps: one in detailed Oaxaca decompositions; the other measuring industrial gender wage gaps.
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References listed on IDEAS
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- John P. Haisken-DeNew & Christoph M. Schmidt, 2000.
"Interindustry and Interregion Differentials: Mechanics and Interpretation,"
The Review of Economics and Statistics,
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- Javier Gardeazabal & Aratza Ugidos, "undated". "More on identification in detailed wage decompositions," Studies on the Spanish Economy 140, FEDEA.
- Gardeazabal, Javier & Ugidos Olazabal, Arantza, 2002. "More on Identification on Detailed Wage Decompositions," DFAEII Working Papers 2002-17, University of the Basque Country - Department of Foundations of Economic Analysis II.
- Krueger, Alan B & Summers, Lawrence H, 1988. "Efficiency Wages and the Inter-industry Wage Structure," Econometrica, Econometric Society, vol. 56(2), pages 259-293, March.
- Suits, Daniel B, 1984. "Dummy Variables: Mechanics v. Interpretation," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 177-180, February.
- William C. Horrace & Ronald L. Oaxaca, 2001. "Inter-Industry Wage Differentials and the Gender Wage Gap: An Identification Problem," ILR Review, Cornell University, ILR School, vol. 54(3), pages 611-618, April. Full references (including those not matched with items on IDEAS)
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