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Differences in positions along a hierarchy : Counterfactuals based on an assignment model

Author

Listed:
  • L. GOBILLON

    (Paris School of Economics-CNRS, INED,CEPR and IZA.)

  • D. MEURS

    (University of Nanterre (EconomiX), Chaire Travail (PSE) and INED.)

  • S. ROUX

    (Insee, CREST and INED.)

Abstract

We propose an assignment model in which positions along a hierarchy are attributed to individuals depending on their characteristics. Our theoretical framework can be used to study differences in assignment and pay-offs across groups and we show it can motivate decomposition and counterfactual exercises. In an application, we study gender wage disparities in the public and private sectors with a French dataset. The gender wage gap in the public sector is 13.3 % and it increases by only 0.7 percentage points when workers are assigned to job positions according to the rules of the private sector.

Suggested Citation

  • L. Gobillon & D. Meurs & S. Roux, 2021. "Differences in positions along a hierarchy : Counterfactuals based on an assignment model," Documents de Travail de l'Insee - INSEE Working Papers 2021-02, Institut National de la Statistique et des Etudes Economiques.
    • Handle: RePEc:nse:doctra:2021-02
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    File URL: https://www.bnsp.insee.fr/ark:/12148/bc6p077hsnf/f1.pdf
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    Cited by:

    1. is not listed on IDEAS
    2. Bargain, Olivier B. & Etienne, Audrey & Melly, Blaise, 2018. "Public Sector Wage Gaps over the Long-Run: Evidence from Panel Administrative Data," IZA Discussion Papers 11924, IZA Network @ LISER.
    3. Matthieu Bunel & Dominique Meurs & Élisabeth Tovar, 2024. "Moving apart: job-driven residential mobility and the gender pay gap Evidence from a large industrial firm," Working Papers hal-04461137, HAL.

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    Keywords

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    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J45 - Labor and Demographic Economics - - Particular Labor Markets - - - Public Sector Labor Markets

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