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An Alternative Estimator for Industrial Gender Wage Gaps: A Normalized Regression Approach

Author

Listed:
  • Yun, Myeong-Su

    (Inha University)

  • Lin, Eric S.

    (National Tsing Hua University)

Abstract

Using normalized regression equations, we propose an alternative estimator of industrial gender wage gaps which is identified in the sense that it is invariant to the choice of an unobserved non-discriminatory wage structure, and to the choice of the reference groups of any categorical variables. The proposed estimator measures the pure impact of industry on gender wage gaps after netting out wage differentials due to differences in characteristics and their coefficients between men and women. Furthermore, the proposed estimator is easy to implement, including hypothesis tests. We compare the proposed estimator with existing estimators using samples from 1998 Current Population Survey of US.

Suggested Citation

  • Yun, Myeong-Su & Lin, Eric S., 2015. "An Alternative Estimator for Industrial Gender Wage Gaps: A Normalized Regression Approach," IZA Discussion Papers 9381, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp9381
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    More about this item

    Keywords

    gender wage discrimination; Oaxaca decomposition; identification; industrial gender wage gaps; normalized regression;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing

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