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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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    References listed on IDEAS

    as
    1. Dominique Meurs & Sophie Ponthieux, 2015. "Gender Inequality," Post-Print hal-01410766, HAL.
    2. Fortin, Nicole & Lemieux, Thomas & Firpo, Sergio, 2011. "Decomposition Methods in Economics," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 4, chapter 1, pages 1-102, Elsevier.
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    4. Nicole M. Fortin, 2008. "The Gender Wage Gap among Young Adults in the United States: The Importance of Money versus People," Journal of Human Resources, University of Wisconsin Press, vol. 43(4).
    5. Domenico Depalo & Raffaela Giordano & Evangelia Papapetrou, 2015. "Public–private wage differentials in euro-area countries: evidence from quantile decomposition analysis," Empirical Economics, Springer, vol. 49(3), pages 985-1015, November.
    6. José Mata & José A. F. Machado, 2005. "Counterfactual decomposition of changes in wage distributions using quantile regression," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 20(4), pages 445-465.
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    8. Dagsvik, John K, 1994. "Discrete and Continuous Choice, Max-Stable Processes, and Independence from Irrelevant Attributes," Econometrica, Econometric Society, vol. 62(5), pages 1179-1205, September.
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    10. Gregory, Robert G. & Borland, Jeff, 1999. "Recent developments in public sector labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 53, pages 3573-3630, Elsevier.
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    Cited by:

    1. Matthieu Bunel & Dominique Meurs & Élisabeth Tovar, 2024. "Moving apart: job-driven residential mobility and the gender pay gap Evidence from a large industrial firm," EconomiX Working Papers 2024-6, University of Paris Nanterre, EconomiX.
    2. Bargain, Olivier & Etienne, Audrey & Melly, Blaise, 2018. "Public Sector Wage Gaps over the Long-Run: Evidence from Panel Administrative Data," IZA Discussion Papers 11924, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    assignment; distributions; counterfactuals; wages; gender; public sector;
    All these keywords.

    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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