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Endogenous Schooling and the Distribution of the Gender Wage Gap

Author

Listed:
  • Hansen, Jörgen

    () (Concordia University)

  • Wahlberg, Roger

    (University of Gothenburg)

Abstract

Previous studies on gender wage discrimination have relied on OLS when estimating the wage equations. However, there exists a number of recent studies, devoted to estimating the return to education, that have shown that OLS may produce biased estimates for a number of reasons. Consequently, if we neglect this potential bias in OLS when estimating the gender wage gap, there is every reason to believe that the estimated wage gaps will also be biased. We first estimate wage equations using instrumental variables procedures and panel data, and then investigate the distributions of wage discrimination experienced. We find overwhelming evidence that OLS seriously overestimate the unexplained gender wage gap.

Suggested Citation

  • Hansen, Jörgen & Wahlberg, Roger, 1999. "Endogenous Schooling and the Distribution of the Gender Wage Gap," IZA Discussion Papers 78, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp78
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    Cited by:

    1. Coral del Río Otero & Carlos Gradín Lago & Olga Cantó Sánchez, 2004. "El enfoque distributivo en el análisis de la discriminación salarial por razón de género," Working Papers 0405, Universidade de Vigo, Departamento de Economía Aplicada.
    2. Luis Gamboa & Blanca Zuluaga, 2013. "Is There a Motherhood Penalty? Decomposing the Family Wage Gap in Colombia," Journal of Family and Economic Issues, Springer, vol. 34(4), pages 421-434, December.
    3. Hugo Ñopo, 2008. "Matching as a Tool to Decompose Wage Gaps," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 290-299, May.
    4. Lucía Navarro-Gómez & Mario F. Rueda-Narvaez, 2015. "Distribution of the gender wage gap with endogenous human capital: evidence for Spain," Evidence-based HRM: A Global Forum for Empirical Scholarship, Emerald Group Publishing, vol. 3(1), pages 25-45, April.
    5. KUEPIE Mathias & DZOSSA Anaclet Désiré & KELODJOUE Samuel, 2013. "Determinants of labor market gender inequalities in Cameroon, Senegal and Mali: the role of human capital and the fertility burden," LISER Working Paper Series 2013-08, LISER.
    6. Juan Pablo Atal & Hugo R. Ñopo & Natalia Winder, 2009. "New Century, Old Disparities: Gender and Ethnic Wage Gaps in Latin America," IDB Publications (Working Papers) 1131, Inter-American Development Bank.
    7. Coral Río & Carlos Gradín & Olga Cantó, 2011. "The measurement of gender wage discrimination: the distributional approach revisited," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(1), pages 57-86, March.
    8. repec:bla:revinw:v:63:y:2017:i:4:p:821-840 is not listed on IDEAS

    More about this item

    Keywords

    individual effects; panel data; endogenous schooling; Return to education; distribution of discrimination;

    JEL classification:

    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs
    • J7 - Labor and Demographic Economics - - Labor Discrimination

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