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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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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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- 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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